Judical Consideration On The Case Of Interest Dispute Of Private Lending

In private lending disputes,the People's Court deals with the interest disputes according to the relevant interest rate limiting rules in the "Judicial Interpretation"strictly.In this case,in order to circumvent the rules,the parties have adopted a series of behaviors to covering up interest calculation.However,when the disputes getting into the judicial process,such behaviors cause a lot of trouble for the judges to ascertain the facts and make a fair judgment.To solve the circumvention of interest rate limit existing in the private lending interest disputes,this paper is organized as the following three parts:The first part focuses on the judicial cases published by the national judge college in 2013,2014 and 2015,and summarizes the court disposal mode of private lending interest disputes.Through the analysis of the different disposal mode,the article points out that if the court processes related disputes according to the article 6 of the original "opinion" in 1991,or article 26 of the "a number of provisions" in 2015,there will be problems of moral hazard,essential fairness and the proof imperfection.This is the logical starting point of this article.In the second part,from the perspectives on the risks of moral hazard,the substantial justice and the burden of proof,the article finds that the private lending interest disputes which are dealt with in accordance with the article 26 of the "a number of provisions" in 2015 by the court,have several shortcomings and deficiencies:Firstly,in the folk lending interest disputes,after the defendant repays part of the interest,in accordance with the article 26 of the "a number of provisions"in 2015,there are moral risks for the debtors to save interest payments by suit,which will encourage debtors to repay the loans inactively.Secondly,in the business loans,the interest rate limit line ignores the factors such as industry profitability and loan time limits,which will cause "substantial justice" problems.Thirdly,due to a lack of reasonable allocation of the obligation on subjectively evading debts,the type of cases lack effective restrictions on the debtor to adverse selection and save interest expense through litigation.In the third part,on the basis of classifying the form of the private lending,with reference to the article 109 of "the Interpretation of the Civil Procedure Law",to measure whether the borrower failing to repay is in line with the court ruling or not by the standard of proof beyond a reasonable doubt,the court interference of agreed interest rate legal cause should consider the following two reasons:First,the debtor failing to pay is not for the purposes on escaping contract interest.Second,to repay the loan as agreed in the original interest can lead to substantial production and business operation difficulties.Only conforming to the legal reasons,shall the court apply to the restrictions on business lending at an annual interest rate of 10,while consumer lending interest rates should always adhere to the restrictions of 10 percent annual interest rate.