Nov. 11 (Bloomberg) -- Aiful Corp., the Japanese consumer lender seeking to defer loan repayments with creditors, reported a record first-half loss on reserves to refund customers for overcharged interest.

The loss of 282.3 billion yen ($3.2 billion) for the six months ended Sept. 30 compares with net income of 7.2 billion yen a year earlier, the Kyoto-based company said in a statement today. The company had forecast loss of 298 billion yen.

Chief Executive officer Yoshitaka Fukuda is seeking to reschedule 280 billion yen of loan repayments with lenders by the end of the year. He plans to cut as many as 2,000 jobs so the company can survive mounting repayment claims and tougher lending regulations.

Aiful’s stock has fallen 51 percent this year, and is down 99 percent from Jan. 13, 2006, when the nation’s Supreme Court said that interest charged by companies above 20 percent was illegal, making the industry liable to refunds. Legislation sparked by the ruling is forcing consumer finance companies to cap interest rates and limit lending to borrowers to no more than a third of their total income.

The company, Japan’s second-largest consumer lender by assets, said Sept. 24 it planned to cut branches to 30 from 96, and consolidate information collection centers. Acom Co., Japan’s largest consumer finance lender by market value, on Nov. 5 forecast a full-year loss of 11.4 billion yen as it pays to cut 550 jobs and close 73 branches.

Aiful’s revenue fell 27 percent to 121.8 billion yen from 165.7 billion yen a year earlier as interest income dropped to 96.9 billion yen from 141.4 billion yen in the same period.

The company added 192 billion yen in reserves to cope with interest repayment claims, it said today.

Aiful changed its full-year loss forecast to 308.3 billion yen from a September figure of 311 billion yen.

To contact the reporter on this story: Finbarr Flynn in Tokyo at fflynn3@bloomberg.net

Last Updated: November 11, 2009 01:34 EST