The hazards of online lending are: 1, the virtual nature of online transactions leads to the inability to authenticate the credit status of both borrowers and borrowers, and it is prone to fraud and default disputes. 2. Many lenders' information published on the network platform is published in the name of loan companies and financing companies. In fact, financial institutions must be approved by the state to engage in financial services such as credit financing. Those who engage in financial activities without authorization are often investigated and punished for illegal fund-raising, illegal absorption of public deposits, and disturbing the order of financial management. 3. If loans are issued on behalf of the network platform, if the network platform neglects self-discipline, or the internal control procedures fail, or are used by others, there may be cases of fabricating loan information and illegally raising funds. Peer-to-peer lending, also known as online lending. Online lending is also becoming a trend. With the advantage of the Internet, all the steps of loan application can be completed without leaving home, including understanding the application conditions of various loans, preparing application materials and submitting loan applications, which can be completed efficiently on the Internet. Peer-to-peer lending is protected by law, but the online lending platform provider cannot be required to bear the guarantee responsibility, and it depends on whether it is stated in the service agreement.

Legal basis:

Article 22 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases, the borrower and the lender form a lending relationship through the peer-to-peer lending platform, and the peer-to-peer lending platform provider only provides media services, and the people's court does not support it if the parties request it to assume the guarantee responsibility. The people's court shall support the online loan platform provider who expressly provides a guarantee for the loan through websites, advertisements and other media or has other evidence to prove that the lender requests the online loan platform provider to assume the guarantee responsibility.

Derivative problem:

Is peer-to-peer lending legal?

1. Peer-to-peer lending is a kind of private lending, which is legal. Peer-to-peer lending is just a form of private lending, that is, private lending concludes a loan contract in the form of a network contract, and fulfills the contractual obligations of providing loans and repaying principal and interest through the network. 2. The borrower and the borrower form a lending relationship through a peer-to-peer lending platform. The provider of the peer-to-peer lending platform only provides media services, and the people's court does not support the request of the parties to assume the guarantee liability. Peer-to-peer lending is protected by law, but the provider of peer-to-peer lending platform cannot be required to bear the guarantee responsibility, which still needs to be clarified in the service agreement.