Legal Countermeasures Of China’s Consumer Credit Risk Prevention

Current status of consumption in China’s national economy has risen to unprecedented heights."12th five plan" put forward to establish long-term mechanism to expand consumer demand, the expansion of consumer demand as the strategic focus of expanding domestic demand.18th Chinese Communist Party National Congress also stressed that economic development rely more on domestic demand, especially consumer demand.①This means that China’s banking institutions will boost consumption growth space is enormous.After the2008global financial crisis, China’s consumer credit business has achieved rapid development, the data show personal balance of consumer loans of all financial institutions in China to grow to3.3trillion yuan by the end of2007.10.4357million yuan at the end of2012②.However, due to the low level of consumer credit legislation, the personal credit information system is not perfect, do not form a good social credit environment; banking financial institutions, credit risk management, thin down, the lack of effective credit risk regulatory mechanisms and risk diversification mechanism; consumer demand national policy stimulus is amplified part of the over-banking financial institutions marketing. The residents have a tendency to over-indebtedness, a loan default rate is rising, the endless financial fraud, increase the overall risk of the consumer credit.This article first explains the meaning and characteristics of China’s consumer credit; Second Compared China and Britain and the U.S. personal consumer credit legislation, and put forward our country can learn from; Third focuses on China’s consumer credit risk and its causes; Finally, from a legal point of view, the points legal measures to prevent China’s consumer credit risk. To effectively guard against the risk of consumer credit, to hold the non-occurrence of systemic and regional risks bottom line, speeding up China’s consumer credit and legal system and improve the consumer credit risk diversification mechanism is the key, from a legal point of view of personal consumer credit business risk prevention countermeasures useful discussion, hoping to promote consumer credit business stability, rapid and healthy development, thus contributing to the improvement of the quality of credit assets of the banking financial institutions and the establishment of social credit environment; more importantly, by the expansion of consumer demand to expand domestic demand and thus boost the national economy growth.