Research On The Legal Issues In P2P Network Loan

Peer-to-peer lending(P2P lending)refers to the lending between individuals on the Internet platform.Relying on the Internet technology,P2P lending directly matches lending and borrowing parties,which is a new form of private lending.Compared with the traditional lending transaction form,P2P lending can break the traditional lending restrictions for trade parties on the time and location and reduce the complex financial transactions of the intermediate links.It has many advantages such as simplifying the lending procedure,lowering the threshold of financing,and increasing efficiency,which can provides great convenience to small and micro enterprises and individuals in China.P2P lending was once a huge industry in China,which plays an important role in the circulation of idle funds in society.However,industry chaos,malicious fund-raising,and other problems are common occurances,due to the lax supervision to the P2P lending industry,which has brought much negative impact on the market economy in China.In the past two years,with the intensification of national supervision,most of the platforms with irregular operation have been withdrawn or transformed,and the retention of head platforms and industry concentration will become the trend of future development.This paper adopts the methods of literature research,comparative analysis,inductive analysis and practical investigation to study the legal problems in P2P network loan industry and put forward development suggestions.On the basis of studying and analyzing the basic theories,legal relationships,and legal risks of P2P online loan industry,this paper finally puts forward some Suggestions on the prevention and control of legal risks of P2P online loan industry in China.Apart from the introduction and conclusion,this paper is divided into four parts.The first part is "overview of P2P network loan industry".This part discusses the concept,characteristics,development process,business model,and positive significance of P2P network lending.The second part is “the legal relationship involved in P2P network loan industry”.Thispart discusses the legal relations involved in P2P online lending industry from the internal and external logic levels.According to different subjects,the internal legal relationships include the legal relationship between the platform and the lender,the legal relationship among the lenders,and the legal relationship between the lender and the third-party payment platform.The external legal relationships mainly include the legal relationship between the platform and the financial regulatory body,the legal relationship between the platform and the internet regulatory body,and the legal relationship between the platform and other bank custodian institutions.By studying and discussing the legal relationship involved in P2P online loan industry,we can get a clearer understanding of the development of P2P online loan industry.The third part is "legal risks existing in P2P online loan industry".This part study the legal risks from three different main body including network platform,lenders and borrowers loan.The legal risks faced by the platform mainly include legal risks of illegal fund-raising,legal risks of incomplete exit mechanism,legal risks of money laundering,and the incomplete,untimely,and untrue information disclosure.The legal risks faced by the lender mainly include the legal risk of the borrower's default,the legal risk of the illegal use of the loan,and the legal risk of contract fraud.The legal risks faced by borrowers mainly include the legal risk of personal privacy information being leaked and the legal risk of being involved in usury.Through the analysis,the legal risks of the industry were fond out,which can promote the healthy development of the whole industry.The fourth part is "Suggestions on the prevention and control of legal risks in P2P online loan industry".This part is corresponding to the third part,which puts forward development suggestions according to the existing legal risks.To strengthen the risk prevention and control of online lending platforms,measures of speeding up the promulgation of the regulations on disposal of illegal fund raising,improving the platform's exit mechanism,clarifying the platform's anti-money laundering obligations,strengthening the platform's project information disclosure,and improving the corresponding regulatory system should be taken.By establishing a reliable credit investigation system,strengthening the supervision and management of post-loan funds,and promoting the scientific and technological innovation of online loan platforms,the prevention and control of risks faced by lenders can be strengthened.By strengthening the protection of personal information,strengthening the supervision of usury,and guiding young people to form rational consumption habits,the risk prevention and control of borrowers can be strengthened.