Research On Consumer Financial Protection Authority

Independent Consumer Financial Protection Authority was first established in England, for the reason of unfair and deceptive practice within banking industry, the United State set the model of the United Kingdom as a example, establish the Consumer Financial Protection Bureau, which is set under the Federal Reserve, be responsible for the issue of Consumer Financial Protection and Education. Take China into account, with the development of financial market, many financial areas (banking securities insurance and trust etc.) are an infringement of the phenomenon. Particularly in banking sector, direct to the phenomenon of the platform of the financing loan, high risk in real estate loan, high cost of credit card fee, stolen of online bank account, sold together, ATM counterfeit and format terms. The disadvantage of financial consumer is getting worse, on the background of financial innovation and financial development, which led to new consumer protection flow. This article is based on the Financial Supervision System Reform of the UnitedKingdom and the United State, associated with Chinese financial condition of consumer protection. Author suggests establishing a professional authority in the financial area to enhance the protection of consumer's legal rights.The article is divided into three parts:The first part is theoretical and practical analysis of financial consumer protection. Firstly, define the concept of consumer and financial consumer, analysis the difference to focus the particularity of financial consumer. Secondly, concrete analysis the theory of the "contract terms freedom" principle, "social hierarchical" theory, " irrational of alone objects " theory, " economic person assumptions ", "external negative effect " in transactions, to emphasize the financial consumer protection in theoretical sense. Thirdly, concrete analysis the practice of the financial innovation, development of industry and professional, development of professional technique, information asymmetry, the consumer hard to legal action, supervision conflicts and blank, have launch challenges to consumer protection, to emphasize the financial consumer protection in practical sense. Thus, the financial consumer protection got the theoretical and practical base.The second part is the model analysis of financial consumer protection in different countries. From the horizontal, refer to three modes of financial consumer protection: the mode of profession financial consumer protection authority, such as the United States and the United Kingdom; the mode of the financial supervision institutions acting financial consumer protection, such as Japan; the mode of many countries and organizations jointly acting financial consumer protection in certain area, such as the European union. From the vertical, refer to eight areas of specific regulations: background, concept, organization and operation, purpose, range of supervision, relative laws, duties etc.. From two dimensions, analysis the advantages and disadvantages of the three modes, including external efficiency, internal organization, economic cost, social benefit, market trends, and seek to find the mode that adapt to the financial market needs and financial consumer education and protection requests.The third part is the designation of financial consumer protection authority. Financial market is booming, infringement of consumer protection, financial consumer protection is out of date, consumer protection education is hot, take those into account, author suggests set up independent professional authority to protect financial consumer's legal rights. This contains four principles: independent budget, exist independently, functions and operational independence. So that, author specifies the content about position of consumer protection agency, personnel, budget, protection scope and functions.