ABSTRACT
Internet consumer finance refers to the new consumer finance model developed with the support of Internet technology, for example, using the Internet for online processes such as loan approval, lending, consumption, and repayment. The entry barriers of Internet consumer finance are relatively low, therefore the fast development of the market causes disorder, such as inaccurate pricing, non-standard operation, and failed product innovation. Especially those cash loan institutions took advantage of regulatory loopholes and conducted “grey-area” activities such as usury, violent debt collection, and personal information abuse, causing a huge negative impact on society. The disorder of Internet consumer finance was intertwined with moral problems regarding social value, professional standards, and consumer ethics. These issues are the roots that affect financial stability and financial ecology. China must learn from international experiences including regulation on payday loans in the USA to improve the rules and regulations of consumer finance, stress on industry self-regulation, and strengthen protection of financial consumers.
