On Fraud Litigation In Private Lendinge

Abstract:Fraud litigation has not only destroyed the interests of the third person, but also perverted the judicial justice of China severely. Due to the elusiveness of the fraud litigation, the effective governance has become a great challenge to the juridical practice. The cause of the fraud litigation in private lending consists of the imperfection of Good Faith Principle, the absence of judge authority, the expansion of formal admission, the abuse of conciliation system and the low cost of illegal act. After analyzing the cost of illegal act and the cost-benefit, it is easy to find that the main reason why fraud litigation occurs so frequently is that the illegal cost is too little but the identification of the litigation is relatively difficult. Based on that, this essay puts forward several methods to restrict the fraud litigation in private lending:to perfect the case-guidance system, to reform the trial management system, to enlarge the judge authority in the trial, to establish the relief system of the infringed and to increase the illegal cost.