The Study Of Folk Lending Disputes Practice Issue

With the rapid development of the economy, there has been an increase in the demand for capital of enterprises and individuals. Folk debit and credit, characterized by flexibility, convenience, efficiency and the capability to timely meet enterprises'short-term demand for capital, is increasingly vibrant in the present economic sector. Different from formal finance, folk debit and credit features spontaneity, blindness and randomness. However, the state fails to provide sound guidance and effective supervision of it due to the incomplete financial supervision system and a lack of systematic laws and regulations on folk loan behaviors. As the debtor and the creditor become extensive and diversified, folk debit and credit has been growing in size while its drawbacks including increased risk keeping emerging. There has been a spike in folk loan cases in the court as a result of more disputes happened. Folk debit and credit disputes also showed new characteristics and posed a lot of new legal issues that make the cases more complicated. The prominent problems as fact finding and application of law bring huge challenges to the court during the trial of folk debit and credit cases. This paper presents a discussion with five parts. Based on the current folk debit and credit, the author selected a specific case and introduced it in detail to conclude the focus of dispute and then conducted a study on the legal issues related centering on the focus.Part one is a summary of folk debit and credit cases of dispute, presenting its current situation and features. A specific case is chosen with its details introduced, and several complicated questions are raised with respect to the trial of folk loan cases.Part two presents a discussion of examining and confirming the facts of folk debit and credit cases as well as an analysis of the criterion and validity of contract.Part three includes a discussion of the alienation guarantee system and an analysis of its advantages and disadvantages as well as the research on the necessity of the establishment of the system.Research on how to deal with the coexistence of guarantee of person and guarantee of property is made in part four. Several modes are sorted out and the development of how China handles the issue based on the law is presented as well. In the meantime, the author analyzes the management regulations and comes to a conclusion.Part five gives a discussion of the interest rate of folk debit and credit. The author makes an analysis and a summary of the upper limit for the interest rate, the handling of issues concerning the interest paid that exceeds the interest rate standard and the affirmation and handling of the interest deducted in advance.