Archive for the ‘Family matters’ Category

Golden Week activity influenced more by logistics than by economics

Saturday, May 3rd, 2014

Too late to stop now: Travel brochures for Okinawa and Hokkaido

Too late to stop now: Travel brochures for Okinawa and Hokkaido

This year’s Golden Week holiday isn’t as golden as it normally is owing to the way the national holidays that make it possible fall in relation to the days of the week. Showa no hi (the Showa Emperor’s birthday) was on a Tuesday and Constitution Day on a Saturday, so there was enough time between them for people to work, which means they didn’t get those days off. That left a measly 4-day weekend to get all the things people usually do during Golden Week done — like visit their home towns — and the truncated time period meant more highway congestion in a shorter time span, which the media treats with such predictable urgency every year that it has become something of cultural touchstone. In any case, all that gasoline wasted in 45-km traffic jams and constant stops at expressway service areas doesn’t make up economically for the money lost during the reduced holiday.

The Japan Travel Bureau declared that the Golden Week holiday started on April 25 and ended May 6, despite the fact that, for the first half of that period, schools weren’t closed the whole time so it wasn’t a bona fide “break” for families with children, regardless of whether or not dad had to work.

According to a JTB survey of 1,200 people who presumably already knew what they were going to spend over the holiday, the amount expended per person for those who planned to travel domestically was ¥34,400, or 4.2 percent less than last year. For overseas travelers the amount was ¥249,500, which represents an increase of 8.1 percent. The peak days for domestic departures were May 3-4, and for foreign departures May 2-3, thus proving that the first half of the holiday was virtually meaningless. This concentration of recreation into such a short period will likely spawn even more post-GW stories than usual on the spike in attendant divorces and job resignations.

CONTINUE READING about Golden Week 2014 →

Call the sitter: Parents resort to online services out of economic necessity

Monday, March 31st, 2014

Public daycare center closed for the day

Public daycare center closed for the day

A few weeks ago news outlets were all over a story about the death of an infant who had been placed in the care of a young freelance babysitter. The media was quick to blame the mother, at least by implication, since she had found the man through an Internet portal site that matched people who needed babysitters with people who provided such services. Many of these providers seem to be unlicensed, but babysitting as a job description is relatively new to Japan.

What seemed unusual in this case — though it’s actually quite common — is that the two boys the mother left with the man were watched at the man’s apartment in Saitama Prefecture, rather than at the woman’s residence in Yokohama, which is normally the way babysitting works. In the woman’s defense, some media pointed out that she had used the man as a babysitter previously and didn’t trust him, but because he used a different name this time she wasn’t aware she was leaving her children in his care.

However irresponsible the woman was in this situation, the fact is that there is an increasing number of parents who rely on such services. The Internet portal site that the woman used has 10,000 registered users and 6,000 registered sitters. The paucity of daycare services in Japan is a well-covered issue, and some parents can’t wait for the government or the private sector to rectify the situation, especially if they have infants and toddlers, which conventional daycare centers don’t usually accept anyway.

CONTINUE READING about childcare portal sites →

Consumption tax rush approaching peak time

Tuesday, February 18th, 2014

Curb your enthusiasm: Don't rush out and buy an aircon to beat the tax hike since it will probably be cheaper afterwards anyway

Curb your enthusiasm: Don’t rush out and buy an aircon to beat the tax hike since it will probably be cheaper afterwards anyway

Retailers continue to enjoy good business in the runup to the consumption tax hike on April 1, but some are a bit anxious that consumers may not understand the situation sufficiently. Tokyo Shimbun visited a few Tokyo department stores where the rush to buy is especially intense, causing them to post clarifying announcements to head off any attendant disappointment.

At Isetan, these notices are posted prominently in the furniture and bedding sections, as well as the eyeglass section, meaning departments where people order merchandise and then take delivery later. As one Isetan employee explained to the paper, the consumption tax is applied on the day of receipt of merchandise, not on the day it was ordered or even on the day it was paid for. A good portion of department store sales are order-made products, and the notices are cautioning customers to make sure they understand the date their stuff will be ready to pick up, otherwise they may end up paying more than they thought they would.

Keio department store is telling all its customers about the rule so that “there is no misunderstanding.” Daimaru Matsuzaka, near Tokyo Station, has seen sales of order-made men’s suits climb to 14.4 percent higher than last year, a new record, but the closer they get to March the more nervous they are since some suits take longer to make than others. Takashimaya in Nihonbashi is apparently the most conscientious department store, posting very detailed explanations in all its sections that insist the earlier you order something, the more likely it will be you can avoid the extra 3 percent charge.

However, a related article in the weekly Aera says that consumers shouldn’t worry that much, since there’s a good chance people will buy something now to avoid the tax hike only to end up paying more. Some retailers are not as straightforward as the above-mentioned department stores, using the rush as a means of getting customers to sign up for credit cards in order to compound their savings without realizing that in the end they’ll probably have to pay handling fees that will negate such savings, unless they happen to be frequent patrons of the store, in which case they probably already have a card. The magazine interviewed a few housewives who plan to make big purchases ahead of the tax hike.

One woman says she is going to buy all new household appliances, while another in her early 30s will buy baby shower and wedding gifts for friends who will celebrate these happy events in the near future, but as she said, “often these gifts go on sale in July, so I don’t know if I’m actually saving money by buying them now.”

A financial planner told Aera that it may be a mistake to buy some big ticket items now. Air conditioner sales, for instance, tend to be their lowest in March, which is between the cold and the hot seasons. That’s also when manufacturers put out new models, which means last year models will be quite cheap, so he advises to wait. Even after April 1, the price could be considerably less than they are now, even taking the tax hike into consideration. But automobiles and home improvement work, he says, should be ordered right now, if it already isn’t too late, because they require time before final delivery and there are no bargain sales associated with either. For mini-cars (kei jidosha), in particular, now is the time to buy since next year the car tax for buying one will increase by 50 percent.

In the end, here are items that Aera recommends buying now to beat the tax: household appliances; over-the-counter drugs that can be stored for long periods, like aspirin; gold, since the purchaser can buy at a lower tax rate and sell at a higher one; theme park tickets; long-term commuting passes and train tickets in bulk (kaisuken).

Items that Aera doesn’t recommend buying now: PCs and TVs, because they always go on sale; apparel and accessories, which tend to be much cheaper during semiannual bargain sales; real estate and stocks; gems and platinum, which, unlike gold, are more vulnerable to price fluctuations; and everyday necessities like toilet paper, which people all over the world tend to buy up whenever there is some sort of financial panic.

When will they learn: Old folks still falling for swindlers

Tuesday, February 4th, 2014

Bank flyer from Chiba police warning about telephone swindlers.

Bank flyer from Chiba police warning about telephone swindlers.

On Jan. 23, the Chiba prefectural police announced that in 2013 there 724 reported cases of telephone swindling targeting older people, a phenomenon that is still referred to as ore-ore sagi (literally, “it’s me, it’s me” swindles) though the modus operandi of the perpetrators have changed since it first became topical some years ago.

Originally, swindlers pretended to be members of the intended victim’s family and feigned some sort of trouble that required large sums of money to rectify, in which case the target was instructed to transfer the money to a specific bank account. Some media also call this crime furikomi sagi (bank transfer swindling).

Despite lots of publicity regarding this type of crime, swindlers are getting bolder. In 90 percent of the cases reported in Chiba, the swindler or an agent went to the home of the victim and either picked up the cash directly or, even more amazingly, picked up the victim’s ATM card and then withdrew the money himself.

Obviously, these persons weren’t impersonating a relative, which is why the media have yet to come up with a new memorable term. In many cases the swindler pretends to be a government official offering a tax refund or something similar and then acquires the card to carry out the transaction.

In others the swindler pretends to be a securities person with a can’t-miss deal that will make the person lots of money, and while this an old scam, what’s new about it is that the scammer actually shows up to collect the cash for the investment in person. Another new wrinkle in the swindle is using convenience store ATMs, since banks have become wise to the fraud and have installed security cameras and other devices to catch swindlers in the act.

Though the number of cases hasn’t increased appreciably the amount of money swindled has: ¥460 million, a new record for Chiba. That averages out to about ¥3.2 million per successful swindle. In 78 cases, the amount swindled was over ¥10 million. Nationwide the trend is the same.

As of the end of October the amounts swindled totalled ¥38.3 billion and analysts predicted the damage might go as high as ¥42 billion for the year. The total amount in 2012 was ¥38 billion. On the relative plus side Chiba police made 129 arrests of swindlers.

The police are understandably frustrated by the fact that their PR efforts have’t really had any effect, and have told the elderly public just to “not answer the phone,” which is possible to do since everyone has voice mail, even old folks. They advise to listen to the messages and then decide in a cool manner whether or not the caller is legitimate, which sounds like sensible advice, but then avoiding such scams in the past didn’t sound that difficult either, but apparently it was.

Rental video stores ponder their reason for existing

Sunday, December 22nd, 2013

Many happy returns: Prepaid mailer for Rakuten DVDs

Many happy returns: Prepaid mailer for Rakuten DVDs

It’s coming up to that time of year again, the long post-Christmas New Years break when days not spent in the company of relatives you can’t stand are wiled away in front of the television airing programs you can’t stand even more. Traditionally, that makes it one of the biggest seasons for the rental video business; or, at least, it used to. The industry has been in a progressive slump since it peaked more than a decade ago.

According to industry group Japan Video Software Association, the number of stores in Japan peaked in 1990, when it stood at 13,529. In 2012 there were only 3,648, a drop of three-fourths. In terms of revenues the biggest year for rental videos was 2004, when the industry took in ¥258.4 billion. It has decreased by about ¥100 billion since then.

A recent article in the Mainichi Shimbun quoted a 41-year-old owner of a rental video store in Yokohama who said that he used to run two other shops but had to close both. There’s not enough demand for him to be able to afford all the new movies coming out on DVD or Blu-Ray, and it’s new titles that have driven rentals in the past. He remembers the days when he could charge ¥1,000 for a new movie for two days, but since then prices have dropped drastically, mainly due to competition from major national chains.

The main culprit, of course, is the march of technology. Though on-demand streaming and downloading isn’t as widespread in Japan as it is in the U.S., the big three mobile phone carriers have started offering movies that can be streamed on TV sets at home. The number of titles right now is only about 7,000, but even at ¥500 per title, it beats trudging down to the local rental store, if one actually exists within trudging distance.

The problem with on-demand is that accessing such services requires a certain level of computer literacy that tends to decline the older the customer is. This is always a problem for IT service companies but may be the last bastion of revenue for rental video stores. An editor from the industry magazine Video Insider Japan told Mainichi that the strategy from now on will be for video stores to target “customers in their 60s and 70s.”

But only the major chains can afford to do that, apparently. Between them, Tsutaya and GEO account for 70 percent of all the rental video stores in Japan, and because they can afford to buy as many new titles as they want, they price smaller stores out of business. Tsutaya, however, is a franchise operation, and individual owners may find it harder to compete against GEO outlets, which are company owned. Since Tsutaya franchise owners can set their own prices, some are being forced to match GEO’s in order to compete, while others are keeping prices higher. It all depends on location. Also, Tsutaya has made exclusive deals with some distributors that give them a distinct advantage. For a time, they were the only company that had permission to rent out “The Amazing Spider-Man.”

However, in order to attract this older cohort that is now the main demographic for rental videos, chain stores have to go to them rather than the other way around. Both Tsutaya and GEO offer plans wherein customers pay a set monthly fee for a certain number of disks that are delivered directly to their homes. This system has been available for about 10 years, and the only real innovative change has been the addition of so-called spot rentals, meaning members can order videos a la carte without having to sign up for a plan. Right now, GEO is offering some titles for as low as ¥80, with Tsutaya offering ¥100 (both for limited times). What’s interesting about spot rentals is that, depending on which videos you rent and how many, they can be cheaper than monthly plans.

GEO has three monthly plans. The standard plan is ¥945 for four DVDs. After that there’s an 8-disc plan for a little less than ¥2,000, and a 16-disc plan for a bit less than ¥4,000. When you sign up for a plan you get the first month free, but the real difference is in the delivery fee. Whether your order is a spot rental or part of a monthly plan, the fee is ¥300 for up to seven discs at a time. The fee is ¥500 for orders of 8-16 disks. Regardless of the size of the order, the time limit is 10 days from the day the customer receives the disks. As with all such home delivery systems, the company includes a prepaid envelope for returning the discs. However, it’s important to note that GEO does not charge a late fee for people who belong to monthly plans. Late fees for spot rentals are ¥157 a day.

But GEO and Tsutaya now have to contend with an upstart: Rakuten. The Internet mall’s inventory isn’t as deep or wide as the other two companies, but its spot rental system is in many ways cheaper and more amenable to the way most people rent videos. Rakuten also charges ¥300 for delivery fee, but you can only request up to two discs per order. After that the delivery fee increases in increments of ¥200. In that regard, GEO would seem to have the advantage, but actually not. Brand new titles are priced the same as GEO’s, around ¥300, but older titles are usually priced at around ¥50. And titles that are more than, say, two years old can be as cheap as ¥10 or even ¥5.

Like GEO, the time limit for a Rakuten spot rental is 10 days, but if you see two discs over the course of two days you return the discs and can immediately order two more. They usually arrive within a day of placing the order. For sure, the delivery fee for GEO is cheaper, but if you took full advantage of the fee and ordered 7 discs, you’d still have to watch all of them in less than 10 days, and even at ¥80 per disc, they aren’t as cheap as Rakuten’s.

Rakuten’s system is especially rational if you want to watch full seasons of TV series. Last month we watched the second season of “Homeland,” which, because it’s relatively new, cost ¥280 per disc, with two episodes per DVD. But we also went through the first two seasons of “Mad Men,” which were only ¥5-¥10 per disc, also with 2-3 episodes per disc. And they always had the DVDs we wanted in stock. It beats trudging down to the rental video store.

Collecting organizations try to give credit where it’s due, don’t always succeed

Thursday, November 7th, 2013

In a recent series on credit information reporting, the Asahi Shimbun explained the plight of a young Kanto woman who had applied for a credit card last March. The card she was interested in offered discounts at selected stores and could be used as an IC card for public transportation. It also had an attractive point system. Almost all her work colleagues had the card and since her financial particulars were the same as theirs she didn’t think she’d be turned down, but she was and the rejection confused her. She had one other credit card, which she had always paid on time. When she called the credit company that refused her they said they couldn’t give her the reason for the rejection.

A gift campaign notice that comes with a monthly credit card statement

A gift campaign notice that comes with a monthly credit card statement

Then she received a letter from Softbank Mobile, her cell phone service carrier, which said that due to a mistake her payments had been reported to a credit information (CI) company as being delinquent. The period of her false delinquency, she realized, fell during the same time that she applied for the credit card. In the letter Softbank said that it had corrected the mistake with the CI company, and when she applied for the card again after a while, she was approved, but when she tried to find out why they had changed their mind the company again said they couldn’t tell her.

Such situations are not uncommon, but since credit card companies are not obliged to give reasons for rejecting or accepting customers, most applicants have no idea that these problems even exist until it’s too late.

In Softbank’s case, the carrier was actually alerted to the “mistake” last March when customers pointed it out to them. The company investigated the claim and found that between December 2012 and March 2013, about 63,000 customers were reported to credit information companies as having been late with their payments, even though they hadn’t been. The reason for the mistake was fairly complex, and common enough for such a reporting system. All of the affected customers, including the woman profiled by the Asahi, had purchased their terminal devices — meaning their cell phones — through a revolving credit plan. Moreover, they accumulated points over time that could be redeemed as credit through the revolving payment system.

Softbank reported all this information to the relevant CI collecting company, but because of a computer programming redesign that took place late last year the settings that translated points into credit did not work correctly, so people who had paid for their cell phones through points were incorrectly flagged as being delinquent as far back as 2009.

When a financial institution screens someone to determine if the person is credit-worthy, they use CI from various sources: the Credit Information Center (CIC), which mostly works with credit card companies and revolving payment plans; the Japan Credit Information Reference Center Corporation (JICC), whose members are consumer loan outfits; and the Japanese Bankers Association, which collects information related to bank loans. When someone applies for a credit card or a loan the institution requests credit history information from the relevant organization. All lenders and retailers who offer revolving payment plans are obliged by law to report credit histories of customers to one of these CI organizations.

CI includes personal data, such as name, address, birthdate and nature of the transaction; as well as “payment information,” including payment trends and the balance of the account. As long as the customer pays on time, no information is recorded, but when the customer misses a payment the CI collecting company receives a notice of there being an “unpaid situation.” If that situation continues for 3 months straight, the payment situation is reported as being “irregular,” which means the customer is placed on a blacklist.

Being on a blacklist does not necessarily mean that the person will lose his or her credit card or be denied a loan. The financial institutions who request this information for screening purposes can interpret it however they want, but generally if an irregularity is persistent the person’s credit history will be tarnished. Information about irregularities stay in the customer’s credit history for five years, even if the loan or credit bill has been paid off. However, if the irregularity is the result of a mistake on the part of either the company reporting the credit information or the company collecting it, then it is immediately removed from the record.

The problem is that often such mistakes don’t come to light, and while credit reporting companies and lending institutions or credit card companies are not obligated to reveal reasons for rejections to applicants, the credit collection companies are. For instance, if you have a question about your credit card history you can call CIC and, for a fee (¥500-¥1,000), they will give it to you. It’s the same for the other two organizations, depending on where you have borrowed money. An expert in the Asahi article recommends that anyone planning to take out a large loan check beforehand with CI collecting organizations to find out whether or not there may be problems.

The Asahi also reports that an increasing number of young people are showing up on blacklists due to their phone bills. CI, it should be noted, has nothing to do with paying utility bills, a matter that is strictly between the utility and the customer. In the case of cell phones, CI is only reported on people who have bought their phones through revolving payment systems, which are usually attached to phone bills.

The problem here is that many young people forget that they are paying back money loaned to them for their phones. They think that they are paying their phone bill, so if they’re late with a payment they simply have to pay a small penalty. They don’t realize that their credit history is being damaged in the process. In many cases, in fact, it is their parents’ credit history that’s being damaged, since some parents cosign for their kids’s cell phones. It gives them more reason to monitor their cell phone usage.

Where there’s a will: Attitudes toward inheritance change

Wednesday, October 2nd, 2013

Who'll be the next in line?

Who’ll be the next in line?

About a million people die every year in Japan, and 10 percent of them leave wills (yuigonsho). That’s a smaller portion than in the English-speaking West — the BBC says about a third of British adults have wills and USA Today reports 59 percent of American baby boomers have written them — but it’s still larger than other Asian countries (about 1 percent in South Korea) and the number is growing every year.

Legal experts advocate wills as the only effective means of properly disposing of one’s assets after death, but in Japan they’ve traditionally been seen as disruptive. Japanese law outlines methods of inheritance and even stipulates shares for specific family relationships. But family ties have been strained in recent decades owing to shifting social demographics and economic trends. A recent article in the Asahi Shimbun reports that more and more people are dying without any clear beneficiaries. In 2012, ¥37.5 billion left behind by people who died was taken by the government because the deceased had no family willing to claim the body and the person’s property. According to the Supreme Court, this amount is three times what it was a decade ago.

When a person dies without spouses or children, or when those heirs have forfeited their right to the deceased’s assets, the proper court appoints an administrator to dispose of the estate. If the deceased had debts, the administrator repays them out of the available assets. If the deceased had a caregiver, the administrator may offer the person part of those assets. But for the most part the unclaimed money and proceeds from property goes to the central government.

One Yokohama lawyer in the Asahi article talks about his experiences as an administrator, which starts with going to the home of a person who has just died and “cleaning up.” He says he often finds large amounts of cash hidden behind or inside furniture, and now conducts seminars where he tells middle aged and older people about the importance of wills, partly as a means of showing their gratitude to those who helped them in life, regardless of whether or not those people are relatives. When the reporter talks to people who attend the lawyer’s seminar, some admit to having no contact with family and one says he feels compelled to draw up a will because he’s afraid of what might happen to his legacy if it all goes to his irresponsible son.

People in the West who don’t write wills are usually intimidated by the cost of lawyers or just plain scared of thinking about death. In Japan, while speaking of death is still a taboo for most people, the scarcity of wills can mainly be attributed to ignorance. The lawyer in the Asahi article implies that the authorities don’t promote wills because they make money when people die without heirs.

A recent trend that has boosted the status of wills is “ending notes.” Popularized by a hit 2011 documentary about a dying man’s last days, ending notes are books that help people think about their deaths. They explain different processes and often have diary-like features so that readers can write down their thoughts about death and what they want in terms of late-term care, a funeral and the disposal of their remains.

Ending notes actually compel readers to think about their lives right now by making them face the inevitability of death, and so rather than push away such thoughts they force the reader to consider measures such as DNR (do not resuscitate) declarations and last wills and testaments. Ending notes have also been commercialized to a certain extent, and some non-profit groups now hold seminars on the subject of shukatsu (final activities). Funeral homes participate in ending note plans and some banks even have programs to help people think about what they want to do with their assets after they die. According to a survey of people over 60 conducted by Research Bank, 49 percent said they wanted to write ending notes.

But ending note diaries are not legal documents. A will needs to be notarized if it is to hold up in court. One reason wills were previously unpopular in Japan is that when they were contested by family members, courts often sided with the plaintiffs, but that isn’t necessarily the case any more. According to one will-writing website, 7,767 wills were notarized in 1966. The number in 2009 was 76,436. Moreover, in 1985, Japanese courts heard 2,661 inheritance-related lawsuits. That number increased to 9,800 by 2008, and in the same year family courts nationwide received 154,160 requests for advice with regard to inheritance problems. More than 70 percent of all legal disputes over inheritance involve assets of more than ¥50 million. Obviously, you can’t take it with you, but older Japanese are now wising up to the fact that they don’t have to let it pass on to people they can’t stand.

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