The Rights And Juridical Protection Of Bank Financial Consumers

As the living and income level improves, more and more residents have needs ininvestment. The development of products in bank’s wealth management meets theneeds of consumers. At present, the financial products are not quite creative; most ofthe existing bank financial products are only the copy of foreign ones. In recent years,some banks were reported to violate interests of consumers when sell the bankfinancial products. The disputes between bank and consumers continue may beresulted from the defect in the design of products, the compliance of financialproducts and the lack of rights relief. Defective financial products are the onesdesigned by the standard contracts, in which the distribution of rights and obligationsbetween parties are unfair. For example the profit out of the expected earningsbelongs to banks.Banks own the rights to terminate the contracts, while consumers donot have the corresponding rights. Improper ways of information disclosure maydeprive the consumers’ right to know. Consumers are not entitled to claim payment ofinterest during payment period. Bank financial business performances deficienciesmainly refer to the banks violate consumers’ rights in the management process,including non-standard sale behaviors, chaotic consignment behaviors and opaqueinvestment ways. When consumers’ interests have been infringed, they cannoteffectively protect their own interests. Because they have to face high litigation costs,low winning probability and unsmooth complaint channels. Some provisions ofChina’s existing laws are able to regulate the banking financial services. Banking Regulatory Commission also issued special provisions to regulate financial services.However, the existing legal protection limitations still exist. For example, mostregulations’ level are too low, the features of financial products are not considered,remedies for consumers are rarely found in regulations and judges neglect formatcontract violation of consumer rights. Therefore, we need to explore how to providebetter protection for consumers. Firstly, we must solve the underlying problem: whatkind of legal relationship between banks and financial consumers? There are threedifferent kinds of theories. They all have certain rationalities, but also own limitationscannot be avoided. This article is not limited to legal norms, concepts, logicalconnections and other formal judgment basis, but focus on the substance of the legalrelationship reasoning. The legal relationship between banks and financial consumersshould be classified as fiduciary relationship, in order to provide slant protections forconsumers and appropriate guidance for social wealth management needs. On thebasis of fiduciary relationship, consumers should have the fair trading rights,information rights and suitable products rights. The protection of these rights isinseparable from the perfect remedy pathway. As a final judicial remedy right way, itis necessary to pay attention to the role of judicial relief. This paper focuses on thediscussion of judicial means protecting the financial interests of consumers, includingthe role should be played by judges, reversed burden of proof, based regulation, thebalance between financial innovation and financial risk regulatory, the balancebetween civil compensation and consumers own hold risk.