LINE Credit Receives Order to Rectify Credit Service Violations
Photo: ITmedia
Quick answer
Japanese fintech service LINE Credit violated Japan's lending laws due to IT system failures, resulting in excessive loans for customers. Regulators have mandated the company to rectify these deficiencies.
Japan's fintech service LINE Credit, part of the LINE messenger ecosystem, has received an official order from Tokyo authorities to rectify violations in its credit platform. Regulators identified systemic failures that allowed some customers to secure loans without proper income verification.
Key issues included loans issued beyond approved limits, contravening Japan's lending laws. According to the regulator, IT system errors enabled certain borrowers to access funds without adequate assessment of their repayment capacity.
The company has acknowledged the order and initiated corrective measures. Planned improvements include refining borrower verification algorithms and strengthening controls on credit limits. LINE Credit emphasized that all violations were detected during an internal audit, and cooperation with regulators is ongoing.
Common questions
- What violations did LINE Credit commit?
- The company failed to verify borrowers' income documents and issued loans exceeding approved limits, violating Japan's lending laws.
- What actions have been taken against LINE Credit?
- Tokyo authorities have ordered the company to fix systemic errors and ensure compliance with lending regulations.
- Which service was affected by these violations?
- The issues occurred in LINE Pocket Money, the online lending service integrated with the LINE platform.
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