On The Lenders’ Legal Risk And Protection Of Peer To Peer Lending In China

As an essential part of internet finance, peer to peer lending is a brand-new inclusive financial concept. Combining with internet technology, it displays its advantages which are quite distinct from traditional lending and presents fully the huge capacity of financial disintermediation. In view of these, peer to peer lending now becomes a hot investment spot in society. However, a serious of run-away and money-flight events of peer to peer lending platforms which happen during the course of rapid development of this emerging lending mode force the public to inspect and monitor it and detect the concealing legal risk.Firstly, the author of the thesis paper analyzes the possible lenders’ legal risks of peer to peer lending from the aspect of the main debit and credit sides, use, forms, technology and lawsuits. Secondly, the author summarizes the causes of those risks, which chiefly due to the unique characteristics of peer to peer lending, the margin of supervisory system, the lack of codes of practice and the imperfection of credit system. In the last part of this paper, by integrating the features of peer to peer lending in China with foreign experience, the author comes up with his own suggestions on protecting the benefits of lenders via perfecting legislation, strengthening government regulation and enhancing self-regulation of the industry.