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Civil unsecured lending disputes

Time: 2013-03-04         Source: Shandong Legal News         Author: Shandong Legal News

Nowadays, with the strengthening of risk reduction measures in the financial system, some banks have put forward many conditions when they are lending. The threshold for loans is high, and many people have their eyes on folks.Unsecured loansThe procedure is simple and short. It is not known that these private unsecured loans often lead to private loan disputes. Because the procedures are incomplete or the related agreements are illegal, the loan contracts are often not protected by the law, which often leads to the reluctance of some people to lend out the money borrowed from high interest.
High interest rates are difficult to recover
The elderly Liu Guizhi who lives in Shizhong District of Jining City is still distressed by how the money he had loaned a few years ago can get back. The old man is a corporate retired worker who has worked for several years as a water dispenser business after retirement. In 2005, she became acquainted with Bai Mou, who was a liquefied gas business, during the business process. But she did not expect that it was this meeting that brought her own troubles. After gradually becoming familiar with the two men, Bai expressed that his liquefied gas business needed money, proposed borrowing money from Liu Guizhi, and verbally promised high interest rates. Liu Guizhi's savings over the years have more than 100,000 yuan. Considering that your money is on the bank and you are idle, the interest rate is not as high as lending to others. Liu Guizhi then loaned Bai 100,000 yuan twice. At that time, Bai verbally promised to pay 10,000 yuan per month. However, after the money was borrowed, Bai did not pay interest on a monthly basis according to the amount agreed upon at that time, even after three months. Liu Guizhi was accompanied by her husband and asked Bai for money. However, Bai could refuse to pay because of his temporary financial difficulties. As a result, the two parties quarreled and broke up. After several unsuccessful requests for money, Liu Guizhi, seeing that the other party did not care about credit, decided not to ask for the originally agreed interest, but rather to get back his 100,000 yuan principal as soon as possible. However, Liu Guizhi’s desire to get his principal back has still not been successful.
Lawsuit money won back
After two years of repeated negotiations, Liu Guizhi has not been successful. In desperation, Liu Guizhi reported Bai Mo to the Wenshang County People's Court in Jining City and demanded that the other party pay its own principal of 100,000 yuan and the originally agreed monthly interest of 10,000 yuan. During the trial, the court held that Liu Guizhi’s agreed interest with the other party far exceeded four times the interest rate of the bank during the same period, and the court could not support excessively high interest rates. In the end, the court determined that Bai returned Liu Guizhi’s principal amount of RMB 100,000 and the interest calculated according to the bank’s interest rate for the same period. Liu Guizhi, who had no hope, was very satisfied with the verdict.
However, after the court verdict, Bai did not return Liu Guizhi’s money according to the court’s decision. The helpless Liu Guizhi applied to the court for enforcement, but the implementation still failed. It is understood that executives went to Baimou home to investigate the name of a property under Bai, found that the name of the property only two liquefied gas tank worth several million. As liquefied gas tanks are dangerous goods that are flammable and explosive, seizures and auctions cannot be carried out. The other party refuses to perform the judgment and there is no property that can be executed under the name. So how can Liu Guizhi get her own money back? The reporter consulted with Chang Fen lawyer of Jinan Kangqiao Law Firm. He said: “According to relevant judicial interpretations,Private lendingIf the interest rate exceeds the same periodBank interest rateFour times that, it belongs to usury. It is an illegal act. The court will not support it. In the present situation, the creditor needs to provide the court with the property clues of the executed person, which can be enforced by the court. ”
There are many private loan disputes
It is understood that such cases of disputes over private loans are not uncommon. With the accelerated development of individual private economy, some self-employed or small businesses have great demand for funds, but the threshold for bank loans is relatively high for them. In the traditional financial system, lending can not meet the needs of funds, it has created a phenomenon of private lending and lending. These loans do not require mortgages and the procedures are simple. Some small sums even rely on the trust and verbal agreement between friends and relatives. There is no real understanding of the creditors’ creditworthiness and economic repayment ability, and often the money released does not come up. phenomenon.
Chen Bin, a lawyer with Cambridge Law Firm, said on several similar cases that he contacted: “These private loans are neither mortgaged nor guaranteed, and they only rely on a single paper contract. Sometimes the borrowers often cover only their high interest rates for loans. Writing borrowings is not a matter of borrowing contracts for high interest rates. In fact, it is not a security risk for both the lender and the borrower. Once a dispute arises, the oral agreement outside the contract will become very complicated and the rights of both parties will be difficult to guarantee.”
Small private lending can indeed meet the funding needs of some small businesses or self-employed individuals and help them develop. However, once the lender has lost its ability to repay due to mismanagement due to a variety of reasons, or if some of the loans are maliciously defaulted, the borrowers who are completely insecure will face great risks and even direct losses. Therefore, while pursuing high returns on capital, it is even more necessary to standardize lending practices so that it can be more protected by law and more secure for their own interests.

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