CONSUMER'S STATUS IN CROWD AND PEER TO PEER FINANCE
Journal Title: Challenges of the knowledge society ( Provocari ale societatii cunoasterii ) - Year 2019, Vol 11, Issue 13
Abstract
Taking into account the decrease in nominal yields of traditional savings products, consumers are increasingly attracted to alternative ways of investing, such as those offered by crowdfunding platforms. As control over the traditional financial sector has been strengthened after the crisis, new forms of financial intermediation have emerged, such as crowdfunding or peer-to-peer loans. Simple individuals and regular institutions use these types of platforms to lend money directly to consumers or businesses in order to make a financial return from interest payments and the repayment of capital over time. Such services are usually provided by new market operators known to intensively digitize their processes, including technology support for credit analysis and payments settlement. From the perspective of consumer protection, these are risky tools where protection is particularly necessary. It is likely that consumers will not understand the risks involved in the transaction, especially the value of the investment, and an additional problem is the reliability of the trading platforms. Existing EU legislation does not harmonize consumer protection standards in the crowdfunding field and leaves the full development of Member States. It is also a matter of applying a mix of regulations of public and private law to achieve the desired results. Applying the rules of private law on consumer credit by their consumers is another problem. Consumers are often unaware of the legal complications involved. The purpose of this study is to show how, in the absence of harmonization of private-law measures for breaches of the national rules transposing the Consumer Credit Directive and due to the insufficient regulation of crowdfunding, the traditional division of public law (especially financial supervision) and private law (in particular contract law and consumer protection) at national level may create obstacles for consumers to rely on consumer protection standards in private actions against financial institutions.
Authors and Affiliations
Monica CALU
Keywords
Related Articles
- EP ID EP584541
- DOI -
- Views 119
- Downloads 0
LOCAL ECONOMIC DEVELOPMENT (LED) PLANNING IN THE FACE OF GLOBALISATION
Local economic development and workforce initiative are continually evolving. There are no hard and fast rules or long-proven experiences upon which to draw. The job of the economic development planner and the work of th...
CONSIDERATIONS REGARDING THE CONDITION, AS A MODALITY OF THE LEGAL ACT
The provisions of the new civil code did not bring significant changes to the matter of modalities, instead they clarified some aspects, which in the past, due to lack of legislative clarification, could spark controvers...
THE RECYCLING BEHAVIOR OF ROMANIAN CONSUMERS
Reticence towards Romanian migrants is a matter of interest in the analysis of migratory flows in the EU by country of origin. Since Romania's pre-accession to the European Union, among developed countries such as Great...
THE LEGAL REGIME FOR CUSTOMS DUTIES AND TAXES HAVING EQUIVALENT EFFECT IN THE EUROPEAN UNION
One of the consequences that generates direct, short, medium and long-term effects, determined by the accession of the states to the European Union, is that of valorizing also the free movement of goods. More precisely,...
THE CONFIDENTIALITY OF THE MEDICAL ACT IN THE DEPRIVATION OF LIBERTY ENVIRONMENT
Respecting the medical secrecy is one of the essential conditions underlying the protection of private life. Medical information obtained from patients in the context of a physician - patient relationship should be prote...