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 117
- Downloads 0
CUSTOMER EQUITY MANAGEMENT THROUGH CUSTOMER ENGAGEMENT: A CRITICAL REVIEW
The current trends in business processes call for companies to operate in a highly competitive environment. Part of the changes observed is the increased focus on customer retention. The management of customer relations...
RULINGS OF THE NATIONAL COURTS FOLLOWING THE CURIA DECISION IN CASE C-186/16, ANDRICIUC AND OTHERS VS BANCA ROMANEASCA
The CJEU's judgment in Andriciuc and Others vs Banca Românească Case C-186/16 that came in September 2017 is an addition to a growing body of case law on procedural obstacles to consumer protection under Directive 93/13/...
ARBITRABILITY OF DISPUTES RELATED TO INTELECTUAL PROPERTY RIGHTS
The present study is aimed for the intellectual property rights holders and specialists in intellectual property law, that are invited to use, promote and implement arbitration as a winning alternative means of solving d...
QUALITY SCHEDULING INDEX WITHIN PRODUCT’S LIFECYCLE AND THE MONDERN SOCIETY
The purpose of this article is to provide a starting point for application of Quality Scheduling Index within the production process with an emphasis on the product lifecycle and a comparison with our society where due t...
PRACTICAL METHODS OF SELECTION AND CALCULATION OF SAMPLE SIZE FOR AUDIT SAMPLING
Audit sampling is very important part of audit works. No mater it is financial audit, internal audit and others kind of audit, audit sampling still need to be used by auditors. Sampling is a process of selecting a subset...