Research Of Legal Issues Of Commercial Bank Consumer Credit

In recent years, the consumer credit business in China has matured, but it still has many problems. There is no uniform "consumer credit law", and as a result there are problems with controlling the industry through regulations and rules of the CBRC. The consumer credit business includes loans for consumer durables, auto loans, mortgages, credit cards, overdrafts, and so on.This paper considers three representative consumer credit businesses with outstanding problems, was named consumer credit business, and it was included consumer durables loans, auto loans, mortgages and credit cards overdrafts and so on.Incentives for the generation of excessive debt arise from two sources. Firstly, failure of lenders to ensure their solvency by "shopping" to match competitors’ prices; secondly by providers of durables loans not regulating credit advertising, and creating excessive liabilities by irresponsible lending. Extraterritorial excessive debt problems also exist in the consumer credit area, and there is a need to solve this problem together with those of other supporting systems, to ensure that the personal credit system is sound, and that the social security system is effective. Combined with China’s national economic conditions, the key to strengthening protection against excessive debt involves banks preventing irresponsible lending practices by thoroughly reviewing the appropriateness of the customers’obligations, whilst protecting the rights of borrowers to cancel agreements, such as the right to defense, the right to prepayment, the right to know. Guarantee Insurance is fundamental to such disputes, and there were "Insurance Theory", "The assurance Theory" and "The compromise Theory", This paper argues that the "insurance say". Guarantee insurance nature of clear, for clearing the way for resolving other legal issues. Applicable law and other guarantees to ensure the coexistence of insurance, when that loan borrowers do not repay on maturity, guarantee the right order of mortgage insurance and guarantee responsibility phased developers, banks. Credit card overdraft consumption itself is an easy and fast way to generate consumer credit, but credit card cash can be regarded as an illegal breach of consumer credit, since it undermines the normal order of consumer credit. Solve the problem of credit card cash, in addition to producing Legislation to raise the threshold for applications for POS machines and confiscating POS machines held by illegal merchants. Both Acquirer and China Union Pay should have put Cardholder and illegal cash intermediary risk behavior into regulatory.