Purpose of Guarantor Company

5 comments

1. They are, essentially, an insurance company. Yes they will pay the landlord.

   They will also come after you to get their money back. Expect collection calls, visits, etc pretty much constantly. If that doesn’t work they’re very familiar with the courts who will, after giving the company a judgement, send an officer to your apartment where they will seize everything of value to sell, bank accounts, garnish wages until the debt is cleared.

   At that point your life in Japan will be pretty much over. They’ll not renew their agreement with you. No other company will either, you won’t be able to rent or get credit or really anything financially except pay in cash. Which will be easier since you won’t have to pay rent because noone will rent to you.

   You are an adult, pay your bills.

2. Contact them and ask.

3. > (although I just started a new job and I haven’t gotten paid yet

   That’s good because they can garnish your wages.

   Yes you’re obligated to pay in full with interests added.

4. You have to repay the guarantor company in full.

   Back in 2012, I forgot to pay my rent and in 2 days later they already called me asking for payment and to do it fast.

   If you’re really struggling and have no money in your bank account, I think you can request “seikatsu hogou” in the city hall. The city will help you pay your rent for up to 6 months with a maximum value of 50,000y. This might change depending on the city.

5. It’s not insurance for you. It’s insurance for landlords to protect from you. You’ll have to pay back in full plus fees.