Research On Consumer Protection In China's Peer-to-peer Lending Sector

Internet finance is an innovative financial industry which derives from the development of traditional financial system and the spread of the internet.Along with the development of internet finance,Peer-to-Peer(P2P)Lending thrives and become a major investment option of people in China.The innovation of P2 P Lending is that it relieves the tension of imbalance between supply and demand of micro loan through online P2 P Lending platforms,it also helps to accelerate the liquidity of private capital.However,due to the specific characteristics of P2 P Lending,in compare with ordinary consumers,P2 P Lending consumers are more vulnerable and more likely to put themselves in an informational disadvantage position and if this situation continues to exist,it will threat the consumer's rights to know greatly.Especially when it comes with interest conflicts between P2 P Lending Platform and P2 P Lending consumers,instead of disclosing those useful information to consumers,platforms always choose to maximize their owninterests.And as the basis of other consumer's rights,consumer's right to know can not be fully exercised without effective information disclosure system under P2 P Lending transactions.Consumer protection in P2 P Lending sector has not gave rise to enough attention by far and it also stuck in a position of lack of correlated legal protection.Therefore,this article focuses on consumer's right to know protection through analyze legal issues faced by P2 P Lending consumers and emphasize on how to solve those issues by establishing an effective information disclosure system.This article plans to analyze the improving protection methods of P2 P Lending consumer's right to know by discussing the information disclosure obligations of P2 P Lending Platform and how asymmetric information exists and affects P2 P Lending consumer's right to know protection.Firstly,this article is trying to define the concept of P2 P Lending consumer and explain the meaning of P2 P Lending consumer's right to know protection mainly through the comparison between traditional private lending and online P2 P Lending.Then,analyze the current situation and the plight in the protection of P2 P lending consumer's right to know by investigating existing problems of P2 P Lending during its development.Finally,focusing on establishing the information disclosure system in P2 P Lending and exploring ways to improve the current situation of the P2 P Lending consumer's right to know protection.