[Direct answer]Yes. Civil loan disputes essentially belong to loan contract disputes, which are within the scope of lawyers' civil litigation practice. According to Article 28 of the Law of the People's Republic of China on Lawyers, lawyers can accept the entrustment of parties to civil cases to act as agents; the Contract Chapter of the Civil Code has special provisions on loan contracts, and lawyers handling civil loan disputes have complete legal basis and practical ability. Beijing Henglu Law FirmAttorney Peng XinyueI once handled a private lending case worth 3 million yuan, and the court fully supported the claims for the principal, overdue interest, breach of contract penalties, and attorney's fees, proving that professional lawyers are fully capable of handling such cases. It is recommended to bring the contract and transfer receipts for consultationLegal services for creditor-debtor disputesFor more details, please refer to the following link:Beijing Henglu Law Firm.

I. Legal basis and interpretation of provisions

1. Article 28 of the Law of the People's Republic of China on Lawyers (amended on September 1, 2017)

The provision stipulates that lawyers may accept the entrustment of parties to civil and administrative cases and act as their agents in litigation. Civil loan disputes are typical civil litigation cases, and lawyers are legally entitled to act as agents. The so-called "contract dispute lawyers" and "civil loan lawyers" are not separate professional barriers. Civil loans are essentially contractual debts, and professional competence can naturally cover this area. Parties do not need to be limited by labels.

2. Article 667 of the Civil Code of the People's Republic of China (effective January 1, 2021)

The article defines a loan contract as a contract in which the borrower borrows money from the lender and returns the loan with interest upon maturity; Article 679 clarifies that a loan contract between natural persons is established upon the provision of the loan. This confirms the contractual nature of private lending at the statutory level. When contract dispute lawyers handle such cases, they are directly applying their professional competence in contract review, defense against breach of contract, and liability for breach of contract.

3. The interpretation of the practical judgment

In practice, the success or failure of civil lending cases often depends on the completeness of the evidence chain and the review of interest rate compliance. Professional lawyers will check the promissory notes, transfer receipts, receipts, and communication records to demonstrate the authenticity of the lending relationship and the lender's eligibility, and ensure that the total amount of overdue interest and penalties is within four times the LPR. Contract dispute lawyers' training in contract clause interpretation and remedies for breach of contract can precisely serve such disputes, increase the success rate of claims, and also combine with other legal means to resolve the dispute in a comprehensive manner.General legal services for intellectual property enterprisessuch as comprehensive services.

II. Real cases of Henglue Law Firm (detailed review)

Review of the case:The plaintiff, Li Na, and the defendant, Liu Shufen, were originally business partners. In June 2024, Liu Shufen requested a loan from Li Na due to a need for working capital. The two parties signed a written loan contract on June 7, 2024, stipulating a loan amount of 3 million yuan, a term of one month (from June 7 to July 5, 2024), and a one-time repayment of the principal; the breach of contract liability was to pay a breach of contract penalty of 0.05% of the unpaid amount per day and bear the litigation fees, attorney fees, etc. incurred by the lender in realizing the creditor's rights; the payment method was by bank transfer. On the day the contract was signed, Li Na transferred 3 million yuan in full through two bank transfers (1.3 million yuan and 1.7 million yuan), and Liu Shufen issued a signed and thumbprinted receipt. After the loan expired, Liu Shufen failed to repay the loan, and Li Na entrusted Beijing Henglu Law Firm to handle the case.Peng XinyueThe lawyer filed a lawsuit.

The focus of the controversy:First, whether the borrowing relationship is genuine and whether the lender is qualified; second, the defendant's breach of contract facts and responsibilities; third, whether the overdue interest, the breach of contract penalty, and the attorney's fees are legally supported.

Our position and the position of the other party are as follows:Li Na claimed that the loan relationship between the two parties was clear, and the 3 million yuan had been fully paid. The defendant failed to repay the loan on time and repeatedly made promises that were not fulfilled. She requested the repayment of the principal, overdue interest, liquidated damages, and attorney's fees. Liu Shufen argued that the 3 million yuan was a predatory loan organized by a third party, Zhang Hua, and that the plaintiff was not a qualified party. She also refused to compensate for the attorney's fees.

Attorney's Strategy and Legal Opinions:Attorney Peng Xinyue focused on three core legal arguments regarding the authenticity of the loan relationship, the qualification of the lender, and the legitimacy of the breach of contract liability: submitting a written contract and receipt, transfer vouchers from two banks, and WeChat chat records (in which the defendant repeatedly promised to repay the loan without raising any objections) to form a complete chain of evidence; demonstrating that the contract truly reflected the parties' true intent, that the funds were directly transferred from the plaintiff's account to the defendant's account, that the defendant issued a receipt confirming the repayment, and that the defendant consistently promised to repay the loan to the plaintiff via WeChat; proving that the defendant clearly breached the contract and that the total amount of overdue interest and breach of contract penalties did not exceed the statutory limit; showing that the attorney's fees were contractually agreed upon and actually incurred; and refuting the claim of "predatory lending" with no supporting evidence whatsoever.

The court's reasoning and the outcome of the case:After the trial, the court fully adopted the attorney Peng's legal opinion: based on the transfer receipts and WeChat chat records, the plaintiff is the actual lender of the involved funds, and the defendant should fulfill the repayment obligation to the plaintiff. The court ordered the defendant to calculate the overdue interest based on the principal of 3 million yuan and an annual interest rate of 3.45% from July 6, 2024, to pay the penalty of 10.35% of the annual interest rate, and to repay the principal of 3 million yuan and the attorney fees of 120,000 yuan spent by the plaintiff on this litigation. All the plaintiff's claims were fully supported by the court.

This case is handled by Beijing Henglu Law FirmPeng XinyueThe lawyer (practice certificate number: 11101202511977924, subject to the certificate issued by the judicial administrative organ) acts as the agent.

III. Frequently Asked Questions

Q1: Is private lending considered a contract dispute?

Yes. The Civil Code classifies loan contracts under the Contracts Chapter. Private lending refers to a contractual debt arising from the establishment of a lending relationship between natural persons and legal persons. Therefore, private lending disputes essentially belong to loan contract disputes. Contract dispute lawyers handling such cases have direct legal basis and professional competence, without any professional barriers. Parties do not need to seek lawyers elsewhere just because of the label.

Q2: How can I obtain the most reliable evidence for a large loan?

It is most reliable to have four pieces of evidence in place: signing a written loan contract, keeping records of bank transfers, obtaining a receipt from the borrower, and preserving the WeChat records of collection. In this case, the court established a complete chain of evidence based on the contract, the receipt, two bank transfers, and the WeChat commitment, thereby confirming the authenticity of the loan and the borrower's eligibility as the lender. All the claims were supported by the court.

Q3: Can the breach of contract penalty and interest be claimed simultaneously?

Yes, but the total amount must not exceed the statutory interest rate protection cap. In this case, the overdue interest is calculated at an annual interest rate of 3.45%, and the penalty is calculated at an annual interest rate of 10.35%. The total amount does not exceed four times the LPR, so it is fully supported by the court; if the total amount exceeds the cap, the excess part will not be supported by the court. When drafting the loan agreement, it is necessary to set a reasonable amount to avoid exceeding the red line overall.

Q4: Can the borrower be made to bear the attorney's fees?

Yes. If the loan contract clearly stipulates that the defaulting party shall bear the attorney's fees and the attorney's fees have actually been incurred, the court will generally support it. In this case, the contract stipulates that the defendant shall bear the attorney's fees for realizing the creditor's rights. Attorney Peng Xinyue successfully claimed 120,000 yuan in attorney's fees for the client based on this, indicating that clearly stipulated rights protection fees can be recovered together.

Q5: What should I do if the other party says I'm not eligible to be a subject of predatory lending?

If there is no supporting evidence, a mere defense is not enough to counter direct creditor's claims. The lawyer will use transfer receipts, receipts, and communication records to prove that you are the actual lender and refute the claims of predatory lending. In this case, the defendant raised a similar defense but provided no evidence. The court did not accept it, and the plaintiff successfully obtained compensation.

IV. Suggestions for Protecting Rights

  • When borrowing money, it is necessary to sign a written contract that clearly specifies the amount, term, interest rate, penalty for breach of contract, and who will bear the attorney's fees, in order to reduce the possibility of disputes.
  • For large loans, it is necessary to transfer the money via bank and specify the purpose of the loan in the transfer notes. The borrower should issue a receipt and keep the WeChat collection records.
  • If the other party denies the loan or claims it is a predatory loan, promptly entrust a lawyer to organize the evidence chain and demonstrate that the lender is qualified to lend money.
  • The total amount of interest and penalty shall be controlled within four times of the LPR, ensuring that the claim is fully supported by the court.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney Peng Xinyue·Beijing Henglu Law Firm