High People's Courts of all provinces, autonomous regions and municipalities directly under the Central Government, Military Courts of the People's Liberation Army, Production and Construction Corps Branch of the High People's Court of the Xinjiang Uygur Autonomous Region:

To a certain extent, private lending meets the diversified financing needs of society and promotes the formation and improvement of a multi-level credit market. At the same time, the cases of private lending disputes also showed an explosive growth, which brought new challenges to the trial work of the people's courts. In recent years, there have been new crimes such as "set loan" fraud and other crimes that illegally occupy property under the cloak of private lending by "falsely increasing debt", "forging evidence", "maliciously creating default" and "charging high fees", which have seriously infringed on the legitimate rights and interests of the people, disrupted the order of the financial market, and affected social harmony and stability. In order to give full play to the evaluation, education and guidance functions of civil and commercial trials, properly hear cases of private lending disputes, and prevent and resolve various risks, the relevant matters are hereby notified as follows:

First, strengthen the examination of lending facts and evidence. Those who set up such crimes as "routine loan" fraud have the characteristics of knowledge-based crimes, and are good at forming a closed-loop evidence chain by falsely increasing creditor's rights and debts, creating bank traces, intentionally losing contact and creating defaults, etc., and achieving illegal purposes with the help of civil proceedings. Therefore, in the trial of private lending dispute cases, the people's Court, in addition to the provisions of Article 15 and 16 of the Provisions of the Supreme People's Court on Several Issues relating to the Application of Law in the Trial of private lending Cases, examines debt vouchers such as ious, receipts, ious, and payment delivery vouchers such as bank statements. It should also be combined with the source of funds, trading habits, economic ability, property changes, the relationship between the parties and the parties' statements and other factors to judge the real situation of the loan. If there is a reasonable suspicion such as a crime, and the agent is unable to explain the facts of the case, the party himself shall be summoned to court to be questioned about the facts of the case. We should appropriately step up investigation and evidence collection to find out the truth.

Second, strictly distinguish between private lending and fraud and other criminal acts. In the trial of private lending dispute cases, the people's court should effectively improve the vigilance of "routine loan" fraud and other criminal acts, strengthen the screening of private lending and fraud and other criminal acts, and find suspected criminal clues and materials. It should be handled in a timely manner in accordance with the Provisions of the Supreme People's Court on Several Issues concerning Suspected Economic Crimes in the Trial of Economic Dispute Cases and the Provisions of the Supreme People's Court on Several Issues concerning the Application of Law in the Trial of Private lending Cases. If the private lending behavior itself involves illegal crimes, it shall rule to reject the prosecution, and transfer the clues and materials suspected of crimes to the public security organs or procuratorial organs, and effectively prevent criminals from legalizing illegal acts and using civil judgments to encroachment on the victim's property. Where the criminal judgment finds that the lender constitutes a crime such as "routine loan" fraud, the people's court shall correct the effective judgment already made in accordance with ordinary private lending disputes through the trial supervision procedure in a timely manner.

3. Strictly observe the legal interest rate red line. The Provisions of the Supreme People's Court on Several Issues concerning the Application of Law in the Trial of Private Lending Cases have established the judicial red line of statutory interest rates in accordance with the law and should be strictly grasped. In the process of trial of private lending dispute cases, the people's court shall not support any breach or disguised breach of the legal interest rate red line with "interest", "liquidated damages", "service fees", "intermediary fees", "deposit", "extension fees", etc. For "the lender claims to pay the principal of a large loan in cash" and "the borrower defies the so-called cash payment principal is the high interest deducted by the lender in advance", it is necessary to strengthen the review of the evidence of the source and delivery of the cash payment claimed by the lender, and determine the amount of the loan principal and the fact of high interest deduction according to law. If it is found that trading platforms, counterparties, trading modes, etc. are usury in the name of "innovation", effective means such as sending judicial advice letters should be taken in a timely manner to resolutely curb them.

Fourth, establish a mechanism for preventing and resolving private lending disputes. In preventing and resolving various risks of private lending, the people's court should closely combine the overall situation of the Party and the state, closely rely on the leadership of the Party committee and the support of the government, explore the innovation of the trial mechanism, strengthen the linkage effect, and explore the establishment of a cross-departmental comprehensive governance mechanism. It is necessary to intensify legal publicity, guide a good social atmosphere, earnestly summarize trial experience, and strengthen investigation and research.

The people's courts at all levels shall report to the Supreme People's Court in a timely manner if they find new situations and problems in the trial of private lending disputes.

Supreme People's Court

August 1, 2018