Research On Financial Consumer Dispute Resolution Mechanism

With the rapid economic development, financial products and services has become an essential part of people’s daily lives. Contrary to general consumer goods, financial products and services is complex and invisible, the information is asymmetrical in the transaction. In addition to this, the disclosure of information is inadequate, coupled with the low level of consumer financial literacy, financial consumption disputes showing a rising trend. Financial consumption can be convenient, efficient and fair settled, direct bearing on the realization of basic financial consumer rights, affecting the confidence of financial consumers to the financial markets. However, at present, the financial disputes settlement mechanism does not reflect the basic spirit of the financial consumer protection, and financial consumption dispute resolution mechanism significantly falls behind the reality of the dispute resolution needs. Therefore, the study on financial consumption dispute resolution mechanism for the improvement of financial consumer protection system in China.This thesis researches from the perspective of financial consumer protection, based on comparative study, document analysis and other methods. Firstly, thesis discusses the necessity of financial consumption disputes settlement mechanism; Secondly, thesis displays a comparative analysis of foreign financial regulatory agencies, financial monitoring services companies, financial arbitration three financial dispute resolution mechanism. Finally, thesis comes up the inadequate in financial consumption dispute resolution mechanisms in China, then put forward the specific recommendations to improve our financial consumption disputes settlement mechanism.Thesis is divided into four parts, including the introduction and conclusion.The first part is the overview on the financial consumption disputes settlement mechanism, including the definition of financial consumers, the importance of financial consumption disputes settlement mechanism. Financial consumers refers to who do not have the financial expertise, and non-professional identity or non-commercial or business purposes to participate in financial transactions, in a weak position in the financial transactions of the purchase, use financial products or financial services, including natural persons, legal persons and other organizations. The diversified financial consumption disputes settlement mechanism is an important mechanism for the implementation of the Financial Consumer Protection Act. It will help to protect the financial realization of the fundamental rights of consumers; of course, it would make sure the stable development of the financial market.The second part is a comparative analysis of foreign financial consumption disputes settlement mechanism. CFPA and FCAC is a specialized agency of the financial consumer protection, which has the financial consumer protection rules-making power, accept complaints from the financial consumer, punish financial institutions which against the financial consumer directly. There is a special mechanism to dealing with financial consumption disputes in UK and Australia, which is called Financial Surveillance Services Company. Due to the professional, convenience and inclined protection to financial consumers, FOS has become a good mechanism for financial consumer dispute resolution; The financial arbitration system in UK and USA is consummate. It not only has a quick session for small dispute mediation mechanisms, but also provides good practice for resolution to the financial consumer dispute.The third part is discusses the inadequate of dispute resolution mechanisms, based on financial disputes ways in China. Due to the shortage of the Basic Law of the financial consumer protection, vacuum in financial regulators regulatory, lack of diversification dispute resolution mechanism, there is various defects in financial consumer dispute resolution mechanism. Including internal complaints to financial institutions, consumer associations, banking, securities, insurance industry associations to seek dispute resolution, complaints to the financial regulators apply for financial arbitration disputes to the courts.In Part IV, specific proposals is put forward on improving China’s financial dispute resolution mechanism. Include:establish a legal system centered on financial consumer protection, including financial consumers protection; improve the construction of the functions of the existing financial consumer protection agency, strengthen consumer protection authority; including set up financial institutions internal dispute resolution mechanism, FOS, and financial regulatory institutions, the diversification, full range of financial consumer disputes settlement mechanism should be set up. Besides, financial consumer education should be strengthen, and the industry associations, social media monitoring in the resolution of financial consumption should improve gradually.