A Study On The Legal Prevention Of "Trap Loan"

"Trap Loans" is a hot issue of concern to society at present,and it has a great negative impact.China’s current governance of "Trap Loans" mainly relies on the criminal law path,but criminal justice has a lagging nature and cannot prevent the development of "Trap Loans" in all aspects.Given the nature of the problem of "Trap Loans",its governance and prevention should not be limited to the criminal law path but should be diversified from a broader perspective.ChapterⅠmainly examines the origins and development of "Trap Loans",pointing out that the essence of "Trap Loans" is a criminal act based on fraud through the description of the typical external manifestations of "Trap Loans" and the revelation of the purpose of illegal profits of the lenders.Through the study of the prevalence and social hazards of "Trap Loans" in China,the need for regulation of "Trap Loans" is demonstrated.ChapterⅡproposes the need for pluralistic governance,mainly through a study of the current status of criminal law governance and its inadequacies in "Trap Loans".At present,China’s criminal law is perfecting the system of "Trap Loans",and in practice,the punishment for "Trap Loans" reference person is also very severe,through the analysis of "Trap Loans" criminal methods and causes,it is found that in the face of the phenomenon of "l Trap Loans" criminal law governance is still functionally inadequate,criminal law is difficult to play the basic function of preventing "Trap Loans".From the perspective of preventing "Trap Loans",we should start from the basics of system design and carry out diversified governance.Chapter Ⅲ focuses on extraterritorial advances in the regulation of lending and borrowing.The experience of the United Kingdom is to increase the supply of laws,set up specialized institutions to supervise and handle disputes,and attach importance to financial consumer education;the experience of the United States is that the scope of the legislation is extensive,government regulation is relatively loose,and specific matters are carried out at the state level,and interest rates and sources of funds are more lenient,but attention is paid to debt collection,and special laws are introduced to regulate;the experience of Japan is to improve the legal system,not only set up specialized government institutions to regulate lending institutions but also rely on various industry organizations and associations to regulate,strictly set industry access and control interest rates;the experience of Hong Kong,China,is to introduce special "Lenders Ordinance" around the lending industry,from license application to external publicity,business development,interest rate setting and other aspects of detailed and specific regulation.This chapter further analyses the possible inspiration of these experiences for China’s regulation of "Trap Loans".Chapter IV provides recommendations for a system for the prevention of "Trap Loans".Based on a brief analysis of China’s regulation of private lending and borrowing,the basic countermeasures to "Trap Loans" are elaborated: at the institutional level,it is proposed to set a threshold for non-deposit lending organizations to enter;improve the information disclosure system;enact laws and regulations to collect links.At the enforcement level,it is recommended that unfair trading be prohibited;that lenders be prohibited from profiting from irregularities;that fraudulent litigation resulting from lending practices be prevented;and that penalties be imposed on non-compliant lending institutions.In the area of consumer education,it is recommended that financial consumer education be institutionalized and that advanced technology be used to enhance the effectiveness of financial consumer education.