The Reflection And Reconstruction About Non-litigation Settlement Mechanism Of China’s Financial Consumer Disputes

Alongside the steady growth and development of global financial markets, the recognition and protection of consumers’ rights is gradually reaching a state of common understanding. Following the subprime mortgage crisis that hit the United States in the recent years, its occurrence reminded the world to review the problems that harmed the evolution of financial industry, especially the issues related to consumer protection system. One of the essential factors that should be taken into consideration is giving the interest of customers a leading role while improving the financial regulations. Different countries are handling the issue in various ways, some give entities the procedural rights, especially in the case of handling the settlement of financial disputes, while others re-integrate already existing laws into protection regulations. This not only improves already existing system but also creates an alternative financial consumers’ dispute settlement mechanism. What is more, it enables the financial sector to properly reconcile the relationship between official institutions and the customers themselves, making its recovery and improvement possible. Many countries start to attach more importance to procedural rights instead of primal substantive rights, especially on the solution of financial issues.In recent years, financial consumption is becoming integrated into ordinary Chinese citizens’ daily life, these include consumer credits, credit cards, debit cards, third party payment issues, etc. However, it’s a common phenomenon that consumers’ financial interests are being significantly violated. Protection of financial consumers’ rights causes great concern not only among the government but also among the citizens. Particularly, with the rapid growth of financial goods consumption, financial disputes increase in number. As the current Civil Procedure Law and Customer Protection Law regulations are unable to meet the needs of development, it’s high time to renew the rules and existing mechanisms. Considering the perception limitations of financial consumers, China has few legislations and resolution mechanisms that can solve consumers’ disputes. In addition, the lack of timelines, flexibility and effective solutions causes the backlog of financial disputes. For that reason, it’s vital to differentiate the basic conception and common logic regarding consumers’ issues, based on the reality of China’s consumer related disputes, at the same time trying to conduct in-depth empirical research of alternation dispute resolution from the following parts.The first part discusses the non-litigation dispute resolution, as it defines consumer-related disputes and their main issues. The controversy on conception of financial consumer does affect the idea’s unity of financial consumers’ protection. However, in view of the actual situation of financial consumers and their rights, it is necessary to define the protection dispute resolutions.The second part clarifies current situation of financial disputes in China and reflects on the existing mechanisms. Finally, it concludes problems among procedure of dispute solution.The third part analyzes various non-litigation settlement mechanisms of financial consumers’ issues resolutions. It aims to not only explain the system itself but also to introduce the historic background of institutions’ development and their procedures. It tries to provide a way of solving the disputes in a logical and easy way. It tries to gradually meet the current demands, resulting in constructing a financial dispute resolution mechanism which can match Chinese reality and solve its practical problems.The fourth part clarifies the basic thought that exists in the procedure of financial dispute resolution, paying more attention to financial consumers’ education. It also involves reinforcing inclined protection for financial consumers’ rights during the procedure of dealing with the non-litigation settlement processes, highlighting the guidance provided by the government in a long-term perspective. The construction of specific financial dispute resolution mechanisms should be divided into three dimensions(short-, medium- and long-term) to explain specific aspects of non-litigation dispute resolution in Chinese financial sector.