Study Of Credit Card Fraud Legal Issues

The letter of credit(L/C) has substituted bank credit for commercial credit. This makes international trade safer and faster. L/C can protect merchants' legal rights, reduce international risks and give the rein to its positive function. However, while the system of L/C plays its important role, its abstract independent principles is also imposed by illegal merchants to do some cheating activities to Chinese enterprises and banks. These behaviors have seriously disturbed Chinese financial order and brought great losses to China. Therefore, perfecting Chinese L/C legislation and reinforcing the study of L/C appear to be more crucial.This thesis has illustrated the subject in the following four aspects. In the first part, the perniciousness, causes and main manifestations of L/C fraud are illustrated. This author especially poses that L/C fraud is becoming more and more serious after the financial crisis in 1997 so that the study of L/C fraud is urgent at present. In the second part, the Chamber of International Commerce UCP 500 and American Commercial Law are analyzed. Meanwhile, abstract independent principle and exceptional principle are also illustrated. In this part, this author points out the natural defects of UCP 500 is that it can't avoid the L/C fraud. In the third part, this author mainly analyzes Chinese laws concerning with L/C fraud. He put forwards that the article 4 of crime of L/C fraud in Chinese Criminal Law isn't in compliance with the principle of penalty according to criminal law, and it will destroy L/C system. The principles of fairness, honest and credibility and prohibition of civil right abuse in General Rules of Civil Law have the feature of indetermination. The litigation of civil right attached to criminal procedure and litigation property save in the Code of Criminal Procedure, in view of their imperfection, cause the repeating capital frozen by police bureau, procuratorate and court. In view of low requirement of civil litigation capital save in Civil Procedure law, the frequent capital frozen happens all the time. Summary of Panel Discussion Concerning Chinese Coastal Area's Economic and Judicial Work, owing to its low status and evidence's inexplicitness of issuing ban, results in judger's unrestrained jurisdiction power. Therefore, this author concludes that the characteristics of fragmentsand imperfection of Chinese L/C laws are disadvantageous to the perfection of the L/C legislation system ,and can not instruct judges to try the cases of L/C fraud effectively. In the fourth part, this author raises some concerning suggestions of perfecting Chinese laws and preventive measures of disposing of L/C fraud. In this part, this author poses that the stipulation of Chinese Criminal Law should be perfected, and the principle of penalty according to criminal law must be obeyed. The stipulations of litigation save in Civil Procedure Law also should be perfected. In this part , this author especially formulates his assumptions of uniformed L/C law in China. He points out Chinese future uniformed L/C law should stipulate abstract independent principle, exceptional principle and the strict identical standard of examining documents. Only the court can issue bans, and other parties and units have no power to freeze the payment of L/C. The evidence conditions of issuing ban should be clearly stipulated in future L/C law. Also the bank's guarantee liability should be written in future L/C law.