As demand for borrowing and investment increases, Internet finance products are emerging, with web-based lending platforms becoming a high-profile investment modality. However, in recent years, some web-based lending platforms have been questioned about the legality of their service charges. So, is it legal to charge for services? The issue requires a multifaceted analysis。

Is it legal to charge for services

I. Legal analysis

Our Civil Code provides that “the borrower shall return the principal amount of the loan and pay interest and other expenses within the agreed period and in the manner”. It is clear that the service fee is not interest or the principal amount of the loan, and therefore it is not unlawful to charge the service fee for the web-based loan platform as prescribed by law. It should be noted, however, that the amount charged for services must not exceed the required red line。

Risk analysis

In order to maintain its normal operation, a modest service fee is necessary. However, the network lending industry is not a bank or securities market and is more risky than the traditional financial sector. When selecting a web-based platform, investors should be careful to understand the platform ' s background, qualifications, wind systems and, to the extent possible, legitimate and secure platforms。

III. Analysis from the compliance perspective

The financial sector of the Internet is increasingly regulated. In recent years, the regulatory authorities have introduced a series of regulations regulating the operation of web-based lending platforms. If some Internet lending companies violate regulatory requirements when charging for services, their behaviour may be inconsistent, leading to industrial as well as market imbalances and affecting the interests of investors。

In a comprehensive analysis, it is legal at the legal level for a web-based lending platform to charge service fees. However, investors need to be clear as to whether service charges are charged for compliance and whether web-based lending platforms are legally compliant, be risk-preventive and choose the best possible platform to invest. At the same time, regulators need to further strengthen regulation of web-based lending platforms, maintain market order and protect investors ' interests。