Financial Consumer Disputes Settlement Mechanism Research

After the outbreak of the financial crisis, the world of financial sector legislation perfect job spent a lot of energy, the United States, Britain, Australia,European Union, Japan and other countries have introduced a variety of legislation,then The financial market is stabilizing.The financial sector scuffles broke out over the years in our country,consumers are often difficult to get effective relief.In order to protect the rights of consumers and ensure that financial consumption disputes can be resolved quickly and efficiently,we need to do a system about financial consumer dispute settlement mechanism research to stable financial markets.In this paper,the first chapter introduces theconcept of financialconsumers,Discusses whether the subject of natural person and whether investors included,then analysis the market risk to the financial consumers,points out its risk mainly includes The risk of financial products and services themselves,financial consumer’s own risk,market risk,etc.The above special risks helped to bring about the new consumer financial protection concept,one of the most typical is to set up a special agency,It is divided into specialized agencies and comprehensive protection agencies. Finally, starting from the meaning of financial consumer disputes, the new trend of a gradual change of financial consumer disputes subject and gradually diversified types were Pointed out, And from the definition and related case it is concluded that the function of financial consumer dispute resolution mechanism:(1) to provide the corresponding rights relief channels;(2)perform the relevant laws and regulations;(3)the necessary way of maintaining financial stability.The second chapter mainly analysis the financial consumer disputes settlement mechanism of two dimensions:litigation and alternative dispute resolution. First of all, Analyzes the advantages of lawsuit system security rights,create substantive law and the cost is high,the relative lag, lack of professional talents andother shortcomings,analyses the general litigation and representative litigation. Secondly, analysis of the meaning of alternative dispute resolution mechanism and its contents, mainly including: consultation, complaints, mediation, arbitration, make this clear for each way and combining the concrete system at home and abroad for analysis,such as the United States securities arbitration procedure, the British the ombudsman complaint procedures,conciliation center of HongKong’s financial consumption process in our country, etc.The third chapter comparative study on the related system at home and abroad.First of all, from the Angle of legislation, this paper discusses the United States, Britain, Japan, and changes in Taiwan and HongKong legislation in China. Secondly, this paper introduces the countries（regions） about financial consumer organizations to resolve disputes, analyzed the consumer protection in the United States, Britain’s financial supervision services company, Japan’s industry association, mediation center of HongKong and Taiwan in China and the appraisal center. Again, from the above system in three financial consumption concept of dispute resolution,(1)The solution is more diverse,(2)Such consumer financial protection,(3)Set up relief protection fund.Finally, to summarize the region outside of institutional change and sums up the experience of build is conducive to the relevant regulations in China.The fourth chapter mainly analyzed the problems existed in financial consumer dispute resolution mechanism of present China from two aspects. First, it analyzed the defects of the lawsuit system, which mainly includes:(1)The function of representative is limited.This often manifests the representative and authorized can not come to an agreement, the representative would face the risk to be bribed and the interests would be unfairly distributed.(2)The burden of proof is still in accordance with the way of "who advocates, who proof".(3)The organization could not help financial consumer suewithout legal authorization. Second, it analyzed the disadvantages of alternative resolution mechanism:(1)The time of financial institutions internal complaint is too long, the responsibility of shareholders and directors is insufficient, and the supervision of the regulator is ineffective.(2)No pressure of competition pressure would influence the bodies of dispute settlement.(3) No legislation is against this way.(4) Dispute settlement mechanism in practice has no restraining force, consumer association could not show the effect of dispute resolution, the relevant program is not trustworthy, and no clear responsibility subjectleads to the low efficiency of dispute resolution.Based on the above, the fifth chapter put forward specific reformproposals. First, three legislative ideas areprovided in this chapter:the first one isConsumer Protection Law should be considered as a basis for improvement.;The second one is relatedFinancial Consumer Protection Act should be issued in order to create a professional financial consumer disputes settlement mechanism;The third one is that greater efforts should be made to regulate on related market transactionthrough the financial law from all industries, to achieve the purpose of protecting the financial consumers.Combining with the situation of supervision and legislation in China, the conclusion that the second idea is the most suitable one can be get.The concept of financial consumer should be defined clearly, and the importance of data also should be emphasized.Second, build the protection concept of financial consumer. To achieve that goal,some ways should be adopted like construction of financial consumer protection committee,strengtheningof education system, and establishment of security funds.Then,the litigation system should be improved,along with perfecting the trial structure and improving the professional quality of judicial personnel.Besides,inversion of presenting evidence and collective remedy mechanism can be added into its content. Finally, some other important proposals should also be emphasized, like to establish the alternative dispute resolution mechanism, perfect the handling mechanism of internal financial institutions,set up China’s financial supervision service,establish the inclining protection of financial consumer on cost of complaint and ruling of protection,and improve the system of financial inter-mediation.