Hequ County People's Court successfully resolved a private lending dispute

This article is reprinted from: Xinzhou Daily

This report informs that private lending concerns the “wallets” of the public and family stability. People’s courts protect legal lending according to the law and crack down on usury, predatory lending, and illegal lending behaviors, which translates judicial actions into tangible benefits for the people. Recently, the People’s Court of Hequ County successfully mediated a private lending dispute, effectively maintaining financial order and social stability.

The case originated in April 2011, when Zhang and Li borrowed over 180,000 yuan from Wang to open an aluminum alloy door shop for daily operations, with a verbal agreement of an interest rate of 1.5% per month (annualized 18%). However, due to poor management, the shop went bankrupt, and Wang repeatedly demanded repayment without success. Just after the New Year in 2026, Wang jointly sued Zhang and Li at the People’s Court of Hequ County, demanding repayment of the principal and interest totaling over 660,000 yuan.

After taking over the case, the presiding judge conducted an in-depth understanding of the business operations and personal financial situations of Zhang and Li. Given that the case was a simple private lending dispute and the defendants did have actual difficulties, the presiding judge decided to prioritize mediation.

During the mediation, the presiding judge, on one hand, explained the law to Wang, clarifying that high interest is unacceptable and interpreting relevant legal provisions on interest rates and upfront fees, guiding him to protect his rights rationally; on the other hand, he explained the real difficulties faced by the two defendants. Wang gradually recognized the risks and irrationality of high-interest loans and agreed to negotiate.

Defendant Zhang raised no objections, while Li, for personal reasons, requested an extension on the repayment time. The mediation ultimately reached an agreement: confirming the principal of over 180,000 yuan, with a total repayment of principal and interest amounting to over 190,000 yuan. Among them, Zhang is to repay 100,000 yuan within a month; Li will repay the remaining 90,000 yuan over three years. After the mediation, both parties expressed satisfaction with the outcome. (Wu Yalong)