Consumer lender Takefuji Corp. reported a 144.23 billion yen group net loss Wednesday for the first half of the fiscal year, its first ever, as it was forced to create a large reserve to repay borrowers for excessive interest charges.
The loss was in stark contrast to the company's earlier forecast of a 40.3 billion yen profit for the April-September period and the 27.37 billion yen profit recorded a year earlier.
Facing increased borrower claims against interest charges in the "gray zone" -- high rates that have been ruled illegal -- Takefuji set aside 272.04 billion yen in the first half, putting pressure on its bottom line.