1. Scope of Application of Private Lending Subject Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases are applicable to disputes between legal persons, other organizations and natural persons other than financial institutions approved by the state financial supervision department. Microfinance companies are limited liability companies or joint stock limited companies established by natural persons, corporate legal persons and other social organizations that do not absorb public deposits and operate microfinance business. Microfinance companies can issue loans and charge corresponding interest according to relevant laws, administrative regulations and policies, and their lending behavior with natural persons, legal persons and other organizations is regulated by the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases.
2. It is determined by the third-party revenue and expenditure borrower.
In private lending, if the lender pays the money directly to the third-party payee according to the instructions of the borrower, the borrower should be the defendant. In the lawsuit, if the parties have no dispute about the subject matter of the loan contract, the actual payee may participate in the lawsuit as a witness to find out the fact of loan delivery; If the borrower denies receiving the loan, the people's court may add the actual payee as a third party to participate in the lawsuit.
In private lending, if the third party pays the money directly to the borrower according to the instructions of the lender, the lender should be the plaintiff. In the lawsuit, if the parties have no dispute about the subject matter of the loan contract, the actual payer may participate in the lawsuit as a witness to find out the fact of loan delivery; If the borrower denies receiving the loan, the people's court may add the actual payer as a third party to participate in the lawsuit.
3. Identification of the borrower by name
If the lender signs a loan contract with the nominal borrower and actually gives it to a third party for use, according to the principle of contract relativity, the nominal borrower is the counterpart of the loan contract and the nominal borrower shall bear the repayment responsibility.
If the nominal borrower discloses the actual user to the lender, and the true intentions of all parties are expressed only in the name of the nominal borrower, and the nominal borrower does not actually participate in the performance of the loan relationship or enjoy the benefits of the loan activities, it shall be deemed that the actual user is the actual borrower, and the actual user shall bear the repayment responsibility.
4. The identification of the plaintiff's litigation subject qualification by the homonym of the lender's name and the plaintiff in the IOU.
If the lending behavior between natural persons or between natural persons and enterprises or other organizations is not standardized when the parties write IOUs, or if they write their own names as homophones, homophones or common names, or misspell the lender's name intentionally to avoid debts, the people's court shall accept the private lending lawsuit filed by the party holding the creditor's rights certificate and make a judgment based on other evidence. When the defendant defends the creditor's qualification but there is no evidence to prove it, the plaintiff's qualification as the subject of litigation can be determined.
5. The subject finds that there are more than two lenders or borrowers, and only some lenders or only some borrowers sue.
There are more than two lenders on the creditor's rights certificate, and it is difficult to distinguish whether it is joint debt, joint debt or joint debt. If only some lenders bring a lawsuit against the borrower, the people's court shall add other lenders as joint plaintiffs, except that other lenders explicitly waive their rights against the borrower. The people's court will not accept a separate lawsuit brought by other lenders who explicitly gave up their creditor's rights against the borrower; If it has been accepted, the people's court shall rule to dismiss the prosecution.
There are more than two borrowers on the creditor's rights certificate, and it is difficult to distinguish whether it is joint debt, joint debt or joint debt. If the lender only sues some borrowers, the people's court may ask the lender whether to add other borrowers as co-defendants. If the lender insists on not adding money, the people's court may add money ex officio. 2. Determination of the place of performance of private lending contracts. Determination of the location of the payee The location of the payee as stipulated in Article 3 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases refers to the location of the lender who requests to repay the loan and pay interest or the borrower who requests to perform the loan obligation. In case of any dispute between the two parties on whether to lend the loan involved, the place where the borrower is located shall be the place where the contract is performed; In case of any dispute between the two parties on whether to return the loan and interest involved, the place where the lender is located shall be the place where the contract is performed. 7. The loan contract between natural persons is recognized by the court with jurisdiction under the condition that the private loan contract has not been fulfilled. If the borrower claims that the lender shall bear the liability for contracting negligence on the grounds that the loan has not taken effect, it shall bring a lawsuit to the court where the defendant lender is located; In the loan contract between non-natural persons, if the lender fails to provide the loan as agreed, the borrower may apply the provisions of Article 3 of the Provisions of the Supreme People's Court on Several Issues Concerning the Applicable Law in the Trial of Private Lending Cases, and bring a lawsuit to the court where the borrower is located. 8. If the borrower performs the repayment obligation in non-monetary form, and it is determined by the competent court that the borrower and the lender have not agreed or clearly agreed on the place of performance of the contract, and no supplementary agreement has been reached afterwards, and it cannot be determined according to the relevant provisions of the contract or trading habits, the borrower, with the consent of the lender, will pay off the loan and its interest with non-monetary property after the loan expires, and any dispute between the two parties in the actual performance process shall be under the jurisdiction of the court where the lender is located; When the borrower replaces the original currency payment obligation with real estate, the jurisdiction principle of private lending shall apply. Three. Dealing with the intersection of civil and criminal cases in private lending cases. Identification and Handling of Related but Different Facts in Private Lending Cases If the actions of borrowers and lenders are suspected of criminal offences and related to private lending but not the same facts, the people's court shall continue to hear the disputes over private lending, and the people's court shall transfer the criminal clue materials to the public security and procuratorial organs, or inform the parties to complain and report to them. In any of the following circumstances, it shall be deemed to be related but not the same fact: (1) The borrower privately engraves the official seal of a certain unit in order to raise loans, and seals the column of guarantor with the privately engraved official seal; (two) the borrower is suspected of illegal fund-raising and other criminal offences, but the loan involved in the private lending dispute does not belong to the scope of criminal offences such as illegal fund-raising; (3) The borrower is suspected of illegal fund-raising and other criminal offences, and although the amount of illegal fund-raising includes loans involved in private lending disputes, the lender alone sues the guarantor who is not suspected of committing the crime; (four) other circumstances related to private lending but not the same fact. 10. Transfer of civil and criminal cases involving private lending. If the people's court finds that private lending itself is suspected of illegal fund-raising, it shall rule to dismiss the prosecution and transfer the clues and materials to the public security or procuratorial organs. When transferring clues and materials, the people's court should pay attention to: (1) making a special letter for the transfer of suspected criminal clues, and attaching the indictment of civil cases and relevant materials involved in the case clues; (two) to make a transfer receipt, and to require the public security and procuratorial organs to sign or seal the transfer receipt after receiving the transfer materials; (3) The Letter of Transfer of Suspected Criminal Clues should clearly indicate that it is suggested that the public security or procuratorial organ inform the people's court that the case has been transferred within a certain period of time; (4) If the public security and procuratorial organs file a case after examination, the people's court shall transfer the property involved that has been sealed up, seized or frozen to the public security and procuratorial organs, and the public security and procuratorial organs shall change the procedures for sealing up, seizing and freezing. 1 1. The borrower's lending behavior is suspected of committing a crime or is found guilty by an effective judgment, and the handling of private lending cases. If the borrower is suspected of committing a crime because of lending, the people's court will not accept it; If the lender sues the guarantor alone, the people's court shall accept it; If the lender sues the guarantor and the borrower at the same time, the people's court shall inform the lender to hand over the clues and materials of the borrower's alleged crime to the public security or procuratorial organs. If the lender insists on suing the borrower and the guarantor and meets the acceptance conditions stipulated in Article 119th of the Civil Procedure Law of People's Republic of China (PRC), the people's court shall accept it. After accepting the case, the people's court shall rule to reject the lender's lawsuit against the borrower and transfer the clues and materials to the public security or procuratorial organs; The people's court shall continue to hear the creditor's rights of the lender against the guarantor. After the case enters the proceedings, if the borrower is suspected of committing a crime or the guarantor is suspected of committing a crime, the people's court may decide to suspend the trial of the private lending case. If the borrower is found guilty by an effective judgment for lending, and the lender sues the borrower for civil liability for compensation on the grounds of private lending disputes, the criminal judgment does not involve mourning, or although it involves mourning, but the lender fails to return the compensation in full, the people's court will not accept it. Four. Confirmation of the validity of private lending contract 12. Confirmation of the legal effect of the loan contract between natural persons after signature or seal. The loan contract between natural persons will take legal effect only when the lender actually performs the loan obligation. It is agreed between the parties that a contract will take legal effect after it is signed or sealed, and the legal requirements for the contract to take effect cannot be changed. If the lender fails to actually perform the loan obligation, the loan contract shall be deemed invalid. 13. Effectiveness of loan contracts between enterprises The people's courts shall support occasional and temporary loans issued by non-financial institutions, legal persons and other organizations with their own funds, and at the same time charge appropriate capital occupation fees. The private lending contract signed by the parties claims to be valid; The people's court shall not support the private lending contract signed between non-financial institutions, legal persons and other organizations engaged in formal lending business, if the parties claim that it is valid. Whether non-financial institutions, legal persons and other organizations engage in formal lending business should be comprehensively determined in combination with registered capital, liquidity, loan amount, loan times within one year, loan interest agreement, loan income ratio to enterprise income, and the relationship between borrowers and lenders. 14. Identification of fund-raising by legal persons or other organizations from employees of the unit. Fund-raising by legal persons or other organizations refers to the act of legal persons or other organizations publicly raising funds from employees of the unit and repaying the principal and interest on schedule. In any of the following circumstances, it should not be considered as fund-raising within the unit: (1) raising funds from both employees within the unit and the public; (2) first absorb social workers as company employees, and then absorb funds from them; (three) to raise funds from employees for purposes other than their own use; (four) the unit subjectively knows that the "nominal investor" is inconsistent with the "actual investor", and the "actual investor" is not an employee of the unit; (five) other fund-raising activities within the unit that should not be recognized. 15. Validity of private lending contract suspected of committing a crime If it is determined that both borrowers and borrowers conspire to commit a crime by signing a loan contract, it shall be determined that both parties have committed the act of "covering up illegal purposes in a legal form" as stipulated in Article 52 of the People's Republic of China (PRC) Contract Law, and the loan contract signed by both parties is invalid; The criminal act is only for the purpose of one party to the contract, not the common purpose of both parties, and does not belong to the act of "covering up the illegal purpose in a legal form" as stipulated in Article 52 of the People's Republic of China (PRC) Contract Law. If the other party to the contract requests to confirm the validity of the loan contract, the people's court shall support it. 16. The determination of a loan contract that violates social order and good customs means that the content and purpose of a legal act violate social order or good customs. Under any of the following circumstances, it shall be deemed as a violation of social public order and good customs, and the private lending contract signed by the parties shall be deemed invalid: (1) "Youth loss fee", "breakup fee" and "breakup fee". (two) debts formed by gambling, drug abuse and other illegal acts; (3) Debts arising from entrustment behaviors such as entrustment, relationship finding, etc.; (four) debts between parents, children and other immediate family members who have the obligation to support and support, which violate family ethics and social public order and good customs; (5) Other debts that violate public order and good customs. V. Handling of private loans arising from other basic legal relationships 17. The name of private lending is actually the handling of debts arising from other legal relationships. The legal relationship of private lending is actually partnership, house sale, investment and wealth management, equity transfer and so on. If the plaintiff files a lawsuit with the legal relationship of private lending, the people's court shall explain the change of the litigation request to the plaintiff. If the plaintiff still insists on his claim after being explained by the people's court, the people's court shall rule to reject the plaintiff's claim. When interpreting, the people's court should pay attention to the following: (1) the interpretation should be conducted in the presence of both parties, or the content of the explanation to one party should be informed to the other party; (two) the interpretation should be based on the evidence provided by the parties, and clearly inform the parties of the nature of the legal relationship recognized by the people's court; (3) The interpretation shall be limited to the facts brought by the parties, and the people's court shall not prompt the parties to change, modify or supplement their claims beyond the facts claimed by them; (4) The people's court shall fully listen to the opinions of the parties on matters explained by the court. 18. Understanding and application of "mediation", "reconciliation" and "liquidation" The "mediation" stipulated in the second paragraph of Article 15 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases means that a third person (mediator) communicates information between the parties to the dispute according to certain social norms (including habits, ethics, legal norms, etc.) to promote the parties to the dispute. "Reconciliation" refers to the peaceful settlement of disputes by both parties to the dispute through equal consultation and mutual compromise, and it is the behavior of both parties to the dispute to resolve disputes by themselves. Liquidation refers to the act of clearing and disposing of business, property or creditor-debtor relationship in order to end a certain legal relationship according to the agreement or legal provisions. If the plaintiff files a lawsuit based on the creditor-debtor agreement reached by both parties through mediation, reconciliation or liquidation, the people's court shall determine their respective rights and obligations based on the creditor-debtor agreement; If the defendant thinks that the conclusion of the creditor's rights and debts agreement is seriously misunderstood and unfair, he may request to change or cancel it in accordance with Article 54 of the Contract Law of People's Republic of China (PRC). The intransitive verb on the question of fact checking of private lending 19. Distribution and examination of burden of proof in large cash delivery. If the plaintiff files a lawsuit only on the basis of creditor's rights certificates such as IOUs, receipts and IOUs, and the amount is huge, and the defendant denies the fact of borrowing, if the people's court cannot verify the fact of borrowing only on the basis of creditor's rights certificates and the economic ability of the parties concerned, it shall inform the plaintiff to continue to provide evidence on matters such as the source, direction, payment vouchers and payment details. After being told, if the evidence produced by the plaintiff still cannot prove that the fact of borrowing is very likely, it shall bear adverse consequences. After the plaintiff performs the burden of proof to the best of his ability, the people's court shall comprehensively consider the economic ability of the parties, trading habits, property changes within a reasonable period before and after the formation of the creditor's rights certificate and other factors, and comprehensively judge whether the loan fact has occurred. 20. The fact that there is no loan agreement proves that the people's court should examine the loan agreement between the parties and the actual delivery of the loan money when trying private lending cases. The plaintiff can only provide proof of payment, while the defendant argues that there is no loan relationship between the two parties, and provides corresponding evidence to prove that the money exchange between the two parties is based on other legal relationships. The people's court shall further examine whether there is a loan agreement between the two parties. The plaintiff is also required to provide evidence on the specific reasons, causes and consequences of the payment and the reasonable reasons why the defendant does not issue the IOU. If the evidence provided by the plaintiff cannot prove that both parties have agreed to borrow money, the people's court shall reject its claim. 2 1. Handling of "self-admission" behavior in private lending If the plaintiff only sues for repayment of the loan on the basis of creditor's rights certificates such as IOUs, receipts and IOUs or only on the basis of transfer vouchers of financial institutions, and the defendant directly recognizes the facts of the loan claimed by the plaintiff, the people's court still needs to conduct a review according to the provisions of Article 19 of the Provisions of the Supreme People's Court on Several Issues Concerning the Applicable Law in the Trial of Private Lending Cases. When the ascertained facts are obviously inconsistent with the opinions and self-admission of both parties, if both parties maliciously manufacture or participate in false litigation, the people's court shall deal with them in accordance with the provisions of Article 20 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases. 22. Determination of Plaintiff's Unjustified Refusal to Appear in Court The term "Plaintiff's Unjustified Refusal to Appear in Court" as stipulated in Article 18 of the Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases refers to the plaintiff's failure to attend the trial at the time and place specified in the summons. Under any of the following circumstances, it shall be deemed as a legitimate reason: (1) Unforeseen natural disasters, such as earthquakes, floods and severe snowstorms. , enough to affect the parties to appear in court on time; (2) The plaintiff is unable to appear in court on time due to death, loss of litigation capacity, serious illness and other physiological changes; (3) The plaintiff had a major traffic accident on his way to the court, which prevented him from appearing in court on time; (4) The plaintiff is detained by a judicial organ or a third person and loses his personal freedom; (five) other evidence that can affect the plaintiff's failure to appear in court on time. 23. The summons informs the plaintiff of the problems that should be paid attention to when appearing in court. For the plaintiff who must appear in court to find out the basic facts of the case, the people's court shall summon the plaintiff to appear in court in accordance with the provisions of the second paragraph of Article 174 of the Interpretation of the Supreme People's Court on Application. In practice, it should be noted that (1) the people's court can only apply the second paragraph of Article 174 of the Supreme People's Court's Interpretation of Application to require the plaintiff to appear in court; (two) indicate the legal basis and legal consequences of not appearing in court on the summons, and directly hand over the summons to the plaintiff or his agent, or mail it to the plaintiff himself for signature. If the plaintiff fails to appear in court at the appointed time during the litigation, and fails to explain the reasons to the court after mailing the summons to the address provided by the plaintiff, it shall be regarded as refusing to appear in court; (3) After appearing in court, the plaintiff shall provide relief in accordance with the provisions of Article 292 of the Supreme People's Court's Interpretation on the Application of Third Party to Withdraw Litigation. Eight. Distribution of burden of proof on whether the guarantee liability clause is established. If a third party signs or seals the debt certificate or loan contract, such as IOUs, receipts and IOUs, but fails to indicate its guarantor status or assume the guarantee responsibility, the lender shall provide evidence related to the conclusion process, trading habits and performance process of the above-mentioned contract in the lawsuit, which is used to prove that the signature and seal of the actor has the intention of providing the guarantee responsibility. If the lender cannot prove that the third party's signature and seal on the creditor's rights certificate or loan contract means that it bears the guarantee liability, the people's court shall reject the lender's request for the third party to bear the guarantee liability. Nine. The responsibility of peer-to-peer lending Platform. Peer-to-peer lending Platform is only responsible for providing a trading platform, formulating trading rules, and adopting certain rules, so as to achieve the purpose of promoting both borrowers and borrowers to reach a loan contract. To form an intermediary contract relationship with lenders and borrowers, peer-to-peer lending Platform shall undertake the contractual obligations of intermediaries. If the lender or borrower claims that peer-to-peer lending Platform should bear the guarantee liability, the people's court will not support it. If peer-to-peer lending Platform provides guarantee for the lender with its own funds, it shall bear the guarantee liability in accordance with the guarantee contract concluded with the lender; If peer-to-peer lending Platform introduces a financing guarantee company or a small loan company to provide guarantee for borrowers, the financing guarantee company or the small loan company shall assume the guarantee responsibility; if peer-to-peer lending Platform provides information intermediary services, it shall assume the contractual obligations of the intermediary according to the intermediary contract concluded with lenders and borrowers.
Ten, the legal representative of the enterprise signed a private loan contract identification and handling.
28. If an application is made to increase the subject of the legal representative or person in charge of an enterprise and it is found that the legal representative or person in charge of the enterprise has signed a private loan contract with the lender in the name of the enterprise, and the lender, the enterprise or its shareholders can prove that the borrowed money belongs to the legal representative or person in charge of the enterprise for personal use, and the lender requests that the legal representative or person in charge of the enterprise be listed as a co-defendant or a third party, the people's court shall allow it; An enterprise may also apply to the people's court for the addition of a legal representative or responsible person as a third person, and the people's court shall decide whether to approve the addition according to specific cases. According to the application of the lender or enterprise, the people's court will certainly not exempt the enterprise from the repayment obligation after adding the legal representative or person in charge of the actual enterprise. The people's court may determine the repayment responsibility of enterprises and individuals according to the facts ascertained in the case and the specific claims of the person applying for additional actual payment. 29. Can an enterprise confront a bona fide third party on the grounds that the appointment of its legal representative does not conform to the provisions of the articles of association? After the legal representative or responsible person of an enterprise signs a loan contract with a bona fide third party, the people's court will not support the defense on the grounds that the legal representative or responsible person appointed by the enterprise does not meet the procedures and conditions stipulated in the articles of association. XI。 Definition of private lending and other legal relations. Dealing with the loan relationship is called entrusted financial management. If both parties agree in the asset entrustment management contract or show by fact that the "client" gets a fixed return on principal and interest, it shall be deemed that the two parties have established a legal relationship of lending, and the people's court shall determine the cause of action according to the dispute over the loan contract. 3 1. Identification of disputes over borrowing securities Disputes arising from borrowing securities such as acceptance bills, certificates of deposit, bonds and treasury bills for financing shall be tried by the people's courts in accordance with private lending disputes. 32. The loan contract is related to the cooperation contract. After signing the cooperation contract and signing the loan contract, the parties separately request to return the principal and interest as part of the performance of the cooperation contract. The people's court does not support the determination that the parties separate the loan contract from the cooperation contract and separately request to return the principal and interest of the loan contract. 33. Disputes over whether the legal relationship between the parties is a commercial housing sales contract or a private lending contract. If the legal relationship between the parties is controversial, the people's court shall, in combination with the evidence submitted by both parties, find out the true intention of the parties at the time of signing the contract, and make a judgment on the legal relationship between the parties according to the true intention of the parties and the performance of the contract. If the real intention of the parties to sign a commercial housing sales contract indicates that they are not obtaining the ownership of the house involved, but providing guarantee for the private lending contract, the people's court shall try it in accordance with the legal relationship of private lending. 34. In the second instance, the parties signed a sales contract as a guarantee for the private lending contract, and the people's court of first instance tried the case according to the relationship of the sales contract sued by the parties, and the parties appealed against the judgment of first instance. If the people's court of second instance considers that the basic legal relationship of this case is private lending, the people's court of second instance shall explain to the plaintiff of first instance the request to change the lawsuit. If the plaintiff of first instance agrees to change the claim, the people's court of second instance may mediate; If mediation fails, the case shall be sent back for retrial in accordance with the provisions of Item (3) of Paragraph 1 of Article 170 of the Civil Procedure Law of People's Republic of China (PRC). If the plaintiff of first instance refuses to change the claim after the explanation of the people's court of second instance, the people's court of second instance shall rule to cancel the original judgment and reject the plaintiff's lawsuit of first instance. Twelve. Determination of interest on private lending. Determination of the upper limit of interest on private lending The annual interest rate agreed by both parties is between 24% and 36%. If the lender requests the borrower to pay interest and the borrower refuses to perform it, the people's court will not support it. If the borrower voluntarily pays the interest and the lender has accepted it, and the borrower claims the lender to return it on the grounds of unjust enrichment, the people's court will not support it. If the interest rate agreed by both parties exceeds the annual interest rate of 36%, the agreement in excess is invalid. The people's court shall support the borrower's request to the lender to return the paid interest or to offset the paid interest against the outstanding principal. 36. Allocation of burden of proof for deducting interest from principal in advance and handling of legal relationship based on private lending. If the lender requires the borrower to repay the loan according to the principal amount specified in the debt certificate such as IOUs, receipts and IOUs, it shall prove that both parties have reached a loan agreement and actually delivered the loan according to the amount specified in the debt certificate. If the borrower argues that the interest has been withheld in advance and the lender fails to prove that it has actually paid all the money according to the amount specified in the creditor's rights certificate, the people's court shall require the lender to supplement the evidence. If the evidence supplemented by the lender still cannot rule out the reasonable doubt that the interest has been deducted in advance from the loan principal, the people's court will not support it. 37. The compound interest calculation of private lending means that in the lending relationship, the lender will calculate the interest after counting the overdue interest of the borrower into the principal. That is, in addition to the initial principal, interest will be calculated. In each interest period, the interest of the previous interest period will become the interest principal, and then the interest will be calculated. (1) Determination of principal and interest when the borrower fails to repay the loan for many times in a row and reissues the creditor's rights certificate. If the borrower fails to repay the creditor's rights repeatedly and reissues the creditor's rights certificate, the people's court shall determine the principal of each installment according to the provisions of the first paragraph of Article 28 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases, and finally calculate the sum of the principal and interest of the last installment. Then, according to the second paragraph of Article 28 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, it is judged whether the sum of the principal and interest of the last installment exceeds the legal upper limit, that is, the sum of the interest of the whole loan period and the initial principal calculated at an annual interest rate of 24% based on the initial principal, and some people's courts that exceed the upper limit will not protect it. (II) If the borrower repays part of the money and reissues the creditor's rights certificate, and the borrower repays part of the money and reissues the creditor's rights certificate, the calculation method and upper limit of principal and interest stipulated in the second paragraph of Article 28 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases shall be changed accordingly. The calculation of principal and interest and the upper limit should be based on the actual amount after the reduction of principal, not on the amount of "initial loan principal". If the principal amount is reduced many times, it shall be calculated by stages. Thirteen, overdue interest, liquidated damages and other expenses coexist.
38. Determination of other expenses
If the lender and the borrower agree in the loan contract that the borrower should pay the lender service fees, consulting fees, agency fees, management fees, etc., the lender claims that the sum of overdue interest, liquidated damages and other fees shall not exceed 24% of the annual interest rate, except the expenses necessary for the lender to realize the creditor's rights.
39. If the borrower and the lender only agree on overdue interest or liquidated damages, the people's court will not support the lender's claim for the loss of overdue interest and liquidated damages from the borrower. The borrower and the borrower only agreed on liquidated damages, but did not agree on overdue interest. If the lender claims overdue interest loss and liquidated damages from the borrower, and the total amount of overdue interest and liquidated damages does not exceed 24% of the annual interest rate, the people's court shall support it. Fourteen Determination of joint debts of husband and wife. Determination of the Litigation Status of the Borrower's Spouse in Private Lending Cases In cases where the loan involves the determination of whether the husband and wife are joint debtors, if the lender applies for adding the borrower's spouse as a co-defendant, the people's court may grant permission according to law. If the lender only sues the borrower, the people's court may explain to him that he can also sue his spouse. If the lender insists on suing only the borrower, the people's court shall not add the borrower's spouse as an ex officio co-defendant. If neither the lender nor the borrower explicitly gives up the debt share that the borrower's spouse may bear, the people's court may add the borrower's spouse as a third party to participate in the proceedings in order to find out the facts of the case.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.