To maintain social stability, the Chinese mainland government has issued strict policies to prevent unsupervised growth of cash loans. It reduced the risks inherent in the cash loan business, but it repeats old pattern of “deregulate, and it creates chaos; regulate, and it kills the industry.” We consider this pattern consequential to the weak protection for financial consumers. Recent studies show that financial consumer protection is consistent with maintaining the stability of the financial system. It should help policy maker be more determined to strengthen financial consumer protection. This is particularly relevant in the current context of mainland China: financial consumers are more likely to be victims of over-lending, which in turn will endanger financial stability.