Legal Theoretic Analysis And Relative Regulating Suggestions Of Folk Loan

Folk loan is an old financial way with a long history and it's still in existence in the modern highly-developed financial society. Nevertheless, we're still not mature in the research of it and its legal control and there are still a lot of faults and shortcomings in this field, and among them the most apparent ones are as follows: 1.There are a lot of mistakes and partial opinions about folk loan itself such as the understanding of the subjects, objects and the legal characteristics of it and we don't agree with each other even in the name of it. 2. Influenced by the main traditional viewpoint, the academic circle doesn't have a proper attitude to folk loan with high interest because of the limit of the civil legal principle of fairness. 3.The academic circle doesn't fully realize the effects of folk loan so that it can't put forward good ways to solve the problem of the negative effects of folk loan. Facing the situation of the research on folk loan and its legal control of the academic circle, the author makes clear the basic problems and clearly points out that the subject system of folk loan should include individuals, enterprises and other organizations ,the object of folk loan is only money and all folk loans based on the principles of honesty and self willingness should be legal regardless of the interest. At the same time, the author uniforms the name of folk loan, and based on the analysis of the deep economic reasons supporting the existence of folk loan, the author points out that folk loan cant be directly controlled by law but will diminish slowly only when other modern credit ways appear or are bettered with the help of law. Furthermore, comprehensively taking the political and economic elements into consideration, the author proves the folk loan with high interest should be proper and legal under the principles of honesty and self-willingness in the market economy. At last, after analyzing the negative effects of folk loan, the author puts forward different ways of solving them and firmly agrees that what law can control directly is only negative effects that do harm to others' legal right of folk loan and the author further points out that the legal control way is to properly protect the basic legal rights of the two parties involved in a folk loan.