Consumers bemoan debt collectors' methods<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After being roughed up by a credit card debt collector, Abadi
\nNegara Sinulingga swore he would not pay the Rp 10 million
\n(US$1,058) owing to the credit card company until he received an
\napology.<\/p>\n
\"The debt collector hit me in front of my employees! Can you
\nimagine how humiliated I felt?\" he said at a discussion on credit
\ncard complaints on Saturday, held jointly by the Indonesian
\nConsumers Foundation (YLKI) and Bank Indonesia.<\/p>\n
As the number of credit card holders continues to grow at a
\nrapid pace, from 4.5 million in 2003 to 7.5 million in 2004, more
\nIndonesians, such as Sinulingga, are becoming familiar with the
\npresence and practices of debt collectors.<\/p>\n
YLKI chairwoman Indah Suksmaningsih said a recent survey
\nconducted by the organization revealed that 30 percent out of 901
\ncredit-card user complaints lodged with the organization from
\nMarch 2 to May 15 this year were about practices of debt
\ncollectors.<\/p>\n
She said the stringent debt recovery targets and quotas set by
\ncredit card issuers put pressure on the debt collection agencies
\nthey contract.<\/p>\n
\"As a result, debt collectors use any means to reach these
\ngoals,\" she said.<\/p>\n
Indah said YLKI regularly received complaints from people who
\nfelt \"terrorized\" by debt collectors, such as family members
\nreceiving threats and rude phone calls in the middle of the
\nnight, being accosted at their homes or workplaces, the threat or
\nuse of physical force, or having their possessions confiscated.<\/p>\n
\"I don't think the methods used by debt collectors here would
\nbe legal in other countries,\" she said, adding that credit card
\nissuers often looked the other way concerning these practices.<\/p>\n
The rapid increase in credit card holders has seen the volume
\nof credit card transactions increase as well, from Rp 19.2
\ntrillion in 2001 up to Rp 37.6 trillion last year.<\/p>\n
Bank Indonesia recorded that the amount of bad credit card
\ndebt in 2004 was about Rp 1 trillion, or 8.7 percent of the total
\noutstanding credit card debt of Rp 11.8 trillion.<\/p>\n
The central bank director of accounting and payment system,
\nMohamad Ishak, said even though the use of debt collectors was
\nleft up to the individual issuers, they could find an alternative
\nway to settle bad debts.<\/p>\n
\"One way is for them to ask a customer to come to their office
\nand ask what the problem is,\" he suggested. (002)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/consumers-bemoan-debt-collectors-methods-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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