Legal Regulation Of High Interest Rate In Private Loan

With the social and economic development, private lending has been in the economic lifeof the people playing an increasingly important role, it is also more complex and diverseways. Although our legal rate of interest on the private lending has clearly defined, but notthe parties have also the interest payments, more than four times the rate for bank loans ofsimilar payments made on how to handle provisions of this article to discuss this issue.In judicial practice, according to court over different periods of the local private lendingconditions and government policies, the types of cases there had been a different approach.Theoretically, there is also agreement on the issue is invalid, according to the naturaltreatment and offset against the principal debt of three different views. I thought: pay off theloan principal and interest of the parties has further court to request the return exceeds theinterest portion of the case should be between the two debts that portion of the debt inaccordance with the natural process, not support the request of the parties; while not repaidthe principal and interest of the parties in the case, if the party who claims exceed the interestportion used to pay principal, respond to the request to support, if the parties have notrequested, the excess interest shall be the natural debt deal, law should take the initiative tointervene. The basis is that: first, autonomy can be reasonably limited. Equality of humanrights and freedoms is the core of autonomy, at the beginning, human intentions bystimulating individual initiative to promote the general welfare of society as a whole,however, the extreme individualism can not be achieved only one personal and socialdevelopment, but also may cause obstruction, therefore, humans realized that autonomy canbe reasonable restrictions; secondly, private lending their spontaneity and blindness need tobe regulated; Finally, because of practical needs that the current private lending market lacksnormative operation and effective oversight, lead to financial market disorder, socialinstability frequently, these factors determine the need for the private lending market lawcertain adjustments and regulation.This article from the case cut to the chase, the text includes four parts:Part Ⅰ: the case and its decision to conduct a brief introduction, including the facts of thecase, the court reasons, findings and opinions Procuratorate complaint, and the focus ofcontroversy from the induction, we introduce the current practitioners in the three approaches.Part Ⅱ: The author supports the notion put forward and the allocation of resources fromthe market demand dictates, private lending situation dictates and legal requirements and legaldictates three aspects detailed argument conclusion is reasonable.Part Ⅲ: four times the rate of super two issues related to the conclusion of the detaileddescription further.Part Ⅳ: My perfect the mechanism of private lending norms, raised from privatelending agencies, the regulatory system and the legal aspects of building a sound system ofthree private lending market.Rapid economic growth to promote the rapid development of private lending, borrowersalways want to lend for higher interest returns, resulting in private lending process oftenignore the law on the protection of private lending interest, the " usury." And on usury inexcess of the interest portion of the scope of legal protection, our courts at different times andin different regions have different approach. This paper aims to present the majority of theCourt’s approach to propose a more reasonable I think, beyond the scope of legal protectiondeal with the interest portion of the practice and how to regulate private lending.