Study On Protection Of Financial Consumers' Rights In P2P Lending

An effective regulation system is not the only thing needed in order to establish a healthy environment for the peer-to-peer lending industry.Paying high attention to the protection of P2P lending financial consumers' rights are also essential and necessary.As a matter of fact,some recent incidents have made P2P lending financial consumers suffer great loss because of the lack of related system and imperfection of legal protection system of financial consumers' rights.For example: Wangyingtianxia,a P2P platform,started their business online in April,2013.Less than four months later,in July of that year,investors were not able to withdraw funds from that platform.The same situation happened to another P2P platform,Dongfangchuangtou.Investors were not able to withdraw their funds 4 months after of its opening.Apart from the two mentioned above,many other incidents including the disappearance of Aizengbao,e Zubao's fraudulent of fund raising,Desai Wealth's illegal collection of funds from the public also caused consumers a lot of damages.All these are causing financial consumers to be a victim of fraud and grabbing unlawful interest.Generally speaking,there are two primary reasons why consumers are harmed so badly.The first is an internal one.As compared to traditional face to face lending,P2P online lending has some defects that come with birth,including that the safety for P2P online lending financial consumers are relatively inefficient,it is difficult to protect financial consumers' fair trading rights,and monetary remedies are also hard to get.The second reason is external.Our nation has not established a well-rounded protection system for P2P lending financial consumers: we are still short of legislative protections,regulatory methods are not being enforced enough and dispute resolution channels are not convenient.All of that have made the situation quite award for the protection of P2P lending financial consumers.In conclusion,in the debtor-creditor relationship,P2P platforms enjoy the advantages of information,technology and capital.Therefore in theory they would not naturally consider the rights of the other party.What happened in reality has proved this.Meanwhile,P2P lending financial consumers are easy to compromise when facing high return rates.They would also even give up some of their rights,which make the two parties becoming more unequal.P2P lending financial consumers are bearing much more risks than they should take given their weakness.Regulations are much needed in order to correct the situation and equalize the much too unequal status of the two parties.In order to improve the situation of financial consumers rights being damaged in P2P lending,the China Banking Regulatory Commission has issued a number of effective orders and guidance,including Interim Measures for the Administration of the Business Activities of Online Lending Information Intermediary Institutions,Guidance for the Administration of Record and Registration of Online Lending Information Intermediary Institutions,Guidance for the business of Fund Depositoryof Online Lending etc.,which provides protection for financial consumers from the administrative side and changes the situation of insufficient protection for financial consumers.But these methods are still not enough.Given this situation,this paper first studies on the basic theories of protection for financial consumers with the method of literature research.Furthermore,this paper researches the special situation that financial consumers in P2P lending in our nation face,problems that our regulatory system has by applying empirical analysis and normative analysis,etc.and makes suggestions by learning from other nations' experiences.First,the laws should be more protective and reasonable for consumers.Second,establish specialized laws under the integration concept of financial consumers to make the system for consumer protections better and more complete.In the end,make targeted suggestions from the aspects of information disclosure,credit system,introducing financial advisors and diversifying dispute resolution system to protect property safety,fair trading rights and lawful rights to get remedies of financialconsumers in P2P lending.