Research On The Legal Safeguard Of Chinese Consumer Finance Companies

With the deepening of China’s financial reform and escalating of consumer financialstructure, consumer finance companies play an increasingly important role in the moderneconomy. Consumer finance companies started a pilot from2009to the present shape hasexperienced five years, gradually formed its own unique business model. But it faces manyinstitutional bottlenecks while develops rapidly. Researching related to the legal system ofconsumer finance companies, on the one hand it can promote the continuous improvement ofrelevant legal system of consumer finance company, provides legal protection for theirhealthy development; it also provide legal support for the restructuring and transformationand upgrading of China’s consumer finance industry. This article is based on the pilot and thedevelopment of consumer finance companies, combined with modification "management ofconsumer finance company pilot ", explore and improve consumer finance company legalprotection mechanism, designed to promote the healthy development of the consumer financecompany.This paper is divided into three parts:Part I: the definition of the concept of a consumer finance company. First, define theconcept and nature of consumer finance company, and then summarize the current status ofthe development of consumer finance companies as well as the social effects it produces.Part II: the difficulties that China’s consumer finance companies face with during thedevelopment. This part mainly analysis difficulties consumer finance companies face in thedevelopment in five areas: consumer credit laws, operating mode, the financial interests ofconsumers, risk control and fiscal policy.Part III: promotion of legal protection of the development of consumer financecompanies. This section is put forward reasonable suggestions for improvement on theproblems analyzed on the above part, mainly from the introduction of specialized consumercredit laws, and improve operational mechanisms to strengthen financial consumer protection,improve risk control mechanism and perfect the consumer finance company five fiscalpolicies aspects put forward a sound proposal put forward appropriate legal safeguards for thehealthy development of consumer finance companies.