Does a 'Blacklist' Actually Exist?

When someone experiences incidents such as late payments, defaulting on loans or credit card bills, or even filing for bankruptcy, it is commonly said that they have been 'put on a blacklist.' The term 'black' evokes an image of a list containing negative information, and in manga or TV dramas, it is sometimes depicted as a literal black-covered book.

However, in reality, no such thing as a blacklist exists within the framework of legitimate lending businesses. I specify 'legitimate' because I cannot deny the possibility that such things exist in the underworld, though there is no way to track that. If it did exist, I think we would all agree that we would want to avoid being on it at all costs. Now, within the legitimate system, information regarding the incidents mentioned earlier, as well as personal credit information (such as basic attributes like name, address, and place of employment, as well as contract details and transaction history), is registered with what are called 'designated credit information agencies.'

Designated credit information agency sounds like a rather stiff name, but it is an organization whose establishment is properly mandated by law, and perhaps it is called that because it is designated by law.

Currently, there are three designated credit information agencies in Japan, and they are categorized by the type of usage, such as credit-related, consumer finance-related, and bank-related. When you engage in any financial transaction that requires registration, that information is recorded at one of these agencies. However, necessary information (such as incident reports that lenders are particularly concerned about) is shared among the three agencies. Lending businesses provide their customer information to these designated credit information agencies and, in return, can obtain information about those customers from other companies through the agencies. Therefore, they can comprehensively grasp information such as who is borrowing how much from whom.

It is true that 'black' (negative) information, such as accident history, is recorded, but if you are borrowing money and paying it back properly or acting responsibly, that is, in a sense, 'white' (positive) information, and all of that is recorded as well. So, it is a bit different from a blacklist.

For this reason, even if you lie and say you haven't borrowed from other companies, it is easily discovered if they check. (In fact, most reputable lenders can access information from designated credit information agencies.)

To be continued.