The Civil Code of China was adopted on May 28, 2020, and took effect on January 1, 2021. An article from Caijing (Jan 05, 2021) reports the following first trial under the Civil Code. On January 4, 2021, a court in Shanghai proceeds with a lawsuit on misleading interest rates. The borrower claims that a financial institution provides misleading information on lending rates. Take one of his cases as an example, in 2017 the borrower signed a consuming loan and borrowed RMB 457.95. The financial institution claimed that the interest rate is 15.48%. According to the loan contract, the borrower needed to make a monthly payment of RMB 58.76 in the next 9 months.

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Under the Civil Code of China which took effect on January 1 2021 there have been cases such as the one reported in Caijing on January 5 2021 In this case a borrower in Shanghai sued a financial insti... View the full answer