Author: Japan Reacts Editorial

An article published by THE GOLD ONLINE tells the story of a 45-year-old salaryman earning ¥6 million a year who bought a Toyota Alphard using a residual-value loan (known in Japan as “zankure”), only to be forced to give up the car a few years later — and even hit with an additional settlement bill on top of that. According to the article, a survey found that only 36.9% of people correctly understand how these loans work, while 53.5% said they “don’t understand” them. On 5ch, commenters debated the mismatch between the family’s situation — three people with kids already grown — and their choice of a large minivan like the Alphard, whether choosing a car for show was worth it, and how the interest structure differs from residual-value plans for smartphones.

What a terrifying contract… The downfall of a 45-year-old salaryman earning ¥6 million a year who finally got his dream Alphard through a “zankure” residual-value loan [A Certified Financial Planner explains the pitfalls of “zankure” loans]

Published Sunday, 9/27, 11:00 AM

THE GOLD ONLINE (Gold Online)

Source: news.yahoo.co.jp / Original article here

*This article is compiled as an excerpt and summary of the 5ch (Breaking News Plus) thread “[Automobiles] What a Terrifying Contract… The Downfall of a 45-Year-Old Salaryman Earning ¥6 Million a Year Who Finally Got His Dream Alphard Through a “Zankure” Loan.”

Starting October 1, Sendai Bank—a subsidiary of Jimoto Holdings—will begin depositing a celebratory gift equal to a baby’s birth weight in grams (converted 1-for-1 into yen) into any newly opened savings account held in the child’s name. The move sponsors “Sukusuku Box,” a childcare support program in Miyagi Prefecture; eligible children must be six or younger, and opening the account requires a minimum deposit of 30,000 yen, among other conditions. Birth weight is verified using the mother-and-child health handbook. On 5channel, some argued the amount should just be a flat sum for everyone, others worried about the impact on children born underweight, and still others questioned the legality of savings accounts and deposits held in a child’s name.

On the 25th, Sendai Bank, a subsidiary of Jimoto Holdings, announced it would sponsor the “Sukusuku Box” childcare support project running in Miyagi Prefecture. Starting October 1, the bank will deposit a celebratory gift equal to the child’s birth weight in grams (as yen) into any newly opened account in the child’s name, provided certain conditions are met.

For a baby born weighing 3,250 grams, for example, 3,250 yen would go into the new account. Eligible children are those age six or under who have received a “Sukusuku Box” containing sponsor-company products; conditions include opening a new account and depositing at least 30,000 yen at the same time. Birth weight is confirmed via the mother-and-child health handbook.

According to a Sendai Bank representative, the celebratory-gift idea actually came from bank employees as part of the sponsorship effort. The bank also hopes that opening accounts for children early will lead them to keep it as their main bank well into adulthood. The “Sukusuku Box” project is organized by the Kahoku Shimpo newspaper and the Miyagi Consumers’ Co-operative Society.

Source: nikkei.com / Original article here

※This article is compiled from excerpts and summaries of the 5channel (Breaking News Plus) thread “Sendai Bank to deposit amount equal to birth weight when opening accounts in children’s names, sponsoring childcare support.”