Claim Management and Collection Company (Servicer) System -Act on Special Measures Concerning Claim Management and Collection Businesses-

At the 143rd session of the Diet, the "Act on Special Measures Concerning Claim Management and Collection Businesses", which includes the creation of a private servicer system, was approved by lawmaker-initiated legislation and promulgated on October 16, 1998, with an effective date of the law specified as February 1, 1999 by Cabinet Order.
Work such as the approval and supervision of this industry was made the responsibility of the Judicial System Department’s Examination and Supervision Division, and the Ministry of Justice took over supervision based on industry law.
In addition, at the 151st session of the Diet, the law was amended, which expanded the scope of the claims handled by the claim management and collection companies and partially eased restrictions on operations. The amendment was promulgated on June 20, 2001, with an effective date of September 1, 2001.

In order to promote the disposal of non-performing loans, this act, as an exception to the Attorney Act, while removing the ban on private traders by receiving a permit by the Minister of Justice for claim management and collection, it is intended to secure the appropriateness of the debt collection process by adding necessary regulations and supervision to the licensed contractors as well as a mechanism to eliminate the participation of anti-social forces and organized crime.