On The Legal Relationship Between Credit Card And Its Risks

Since the year 1985 when Bank of China issued the first credit card in China, domestic banks have made great efforts to search the way of development. In 1999, People's Bank of China issued the Rules of Administration on Bank Cards, this represents a great advance in credit card industry of China. Credit card in its real meaning has been issued in recent years, the Chinese people is used to the consumer credit which marks the beginning of a new era of credit card in China.But the credit card business in China is still in a starting stage so far, comparing with the Western countries, there are evident shortages in operating procedure of the credit card business and in the functions of institution that issuing the credit card.The disputes about credit card are not simply common disputes over obligation. The disputes involving banks as defendants present a rising trend. These cases are grouped in the respect where legal rules are not perfect, such as how to ascertain where the responsibility lies when report the loss of credit card, how to ascertain whether or not the credit in account is out of ill will, how to count the interest when the credit is in account, how to ascertain where the responsibility lies when use the credit cards of others fraudulently, etc. When the people submit a case of credit card to the court, they often cannot enjoy the support of the court, simply because the legal rules about the points at issue are not definite.In the respect of legislation, the laws and regulations adjusting the credit cards specially in China are only regulations promulgated by People's Bank of China, the legislative level is very low, it has brought about one-side agreement that many rights including the right to ascertain where the responsibility lies when report the loss of credit card were given to the financial setup issued credit cards. In a degree, the protection for consumer was ignored. On the other hand, personal credit regulatory regime in China is still in the embryonic stage.So it is necessary to research the legal system of credit card, to ascertain the rights and obligations between different parties, to heighten the level of controlling risk. Legal rules about credit cards are not perfect, and there are blanks in many aspects, in order to give full scope to the credit card, and take strict precautions against trading risk, management about credit cards should be under the legal regulating. This thesis aims at analyzing deeply the key links in credit cards transaction and the legal relation of parties involved in the credit card activity, pointing out the essential characteristics of credit card transactions, researching how to ascertain where the responsibility and risk lies when the credit in account is out of ill will, and when use the credit cards of others fraudulently, etc. By this way the author intends to ascertain the rights and obligations among different parties and explore the effective measures of controlling risks in credit card business.