Legal Risk And Prevention Of P2P Lending

The first domestic P2 P lending platform which named Paipai lending was founded in 2007,and it also started the development of the P2 P lending in the mainland China, leading to the rapid increase in the domestic. It has developed as long as eight years in our country. However, there are no relevant laws or regulations to regulate them till now, resulting in their “black state”. After eight years freestyle development, more and more problem starts appearing. A growing number of P2 P platform’s collapse causes social concerns and it reveals tremendous law risks. As a result, it is necessary to make the law to regulate it. This thesis is mainly used the literature research methods and comparative analysis methods, it analysis the risk of the lending platform on the basis of introducing the basic theory of P2 P lending, aimed at to clarity its legal risks. Moreover, this thesis proposes corresponding measures to prevent risks in order to provide references for regulators to make policy and protect healthy development of the P2 P lending industry. This thesis includes three parts:The first part introduces the basic theory of P2 P lending. Firstly, the thesis define the basis theory of P2 P lending from its concept, main characteristics and legal nature; Then it introduces two kinds of operating modes and each one’s typical platform, respectively simple mesomeric platform such as US’ Prosper and China’s Paipai lending and recombination mesomeric platform such as UK’s Zopa and China’s Credit ease. At last, it analyzes two types of legal relationships of platform itself, the borrowers and the lenders, which are loan relationship between borrowers and lenders and contract of mediate relationship between platform and borrowers or lenders.The second part comprehensively analyzes the legal risks of P2 P lending. The analysis of legal risks is done form three subjects: platform itself, borrowers and lenders, respectively expounds each subject’s different legal risk.The third part puts forward the measures to prevent legal risks of P2 P lending. The measures are all come from analysis of the legal risks in the second part. So it is the core of this thesis. In the aspect of platform’s legal risk prevention, it comes up measures to clear the subjects’ qualifications of platform service agency, formulate access standards and exit mechanism, and establish third-party funds custodian regime and risk guaranty money regime; In the aspect of borrower’s legal risk prevention, it comes up measures to perfect credit system, strengthen post-loan supervision, and clearplatform’s duty of confidentiality; funds for post-loan tracking system and clear the confidentiality obligations of the platform; In the aspect of lender’s legal risk prevention, it comes up measures to strengthen loan transaction monitoring,and adopt measures combined mortgage system with credit guarantee of insurance companies.