Debt collectors held, police vow to crush operations<\/p>\n
JAKARTA (JP): Police have arrested two debt collectors as part
\nof its bold campaign to stamp out all collection agencies
\noperating in the city.<\/p>\n
City Police Chief Maj. Gen. Mochammad Hindarto told reporters
\nSaturday that police vowed to crack down on debt collecting
\nservices as a follow up to the instruction of Chief of the
\nJakarta's chapter of Bakorstanasda (the Agency for Coordinating
\nSupports for National Stability) Maj. Gen. Hendropriyono.<\/p>\n
Hendro, who is also the Jakarta military commander, earlier
\nstated collection agencies had caused trouble and fear among the
\npublic as debt collectors were inclined to use physical pressure
\non debtors in an effort to retrieve the creditor's money. He
\nthereby called on the police to curtail the service.<\/p>\n
Hindarto said until recently the police have had no legal
\ngrounds to capture debt collectors since they received no
\ncomplaints from the public.<\/p>\n
"We acted based on reports from the public," the two-star
\ngeneral said.<\/p>\n
Hindarto was speaking at the closing of the 46th Armed Forces
\ncivic action in Tangerang.<\/p>\n
Hindarto refused to identify the two suspects who were
\narrested by police on Saturday, but sources at the city police
\nheadquarters said the suspects were identified as Gustav and
\nTobing.<\/p>\n
The two suspects are now in police custody for interrogation.<\/p>\n
Martin Winata, 39, who reported the suspects to police, told
\nreporters that Gustav and Tobing along with two friends, who are
\nstill at large, were hired by Mrs. King Eng Eng, a resident of
\nPluit, North Jakarta, to force him to repay his ex-wife's debt.<\/p>\n
Martin's ex-wife, Jessica Nalastia, 34, reportedly borrowed Rp
\n81 million (US$37,710) from Mrs. King in 1992 and thus far had
\nrepaid only Rp 13 million ($6,052) of her loan.<\/p>\n
Because Jessica had not paid off her loan the four suspects
\nconfiscated Martin's car, an old Crown sedan, and ordered him to
\nalso hand over a deed to his land as collateral.<\/p>\n
On Wednesday, Martin reported the case to police, who later
\ncaptured two of the heavies Saturday morning at a food shop in
\nBendungan Hilir, Central Jakarta.<\/p>\n
Weak Law<\/p>\n
Some lawyers say they fully support the ongoing anti-debt
\ncollector campaign in principle as long as it is directed against
\ndelinquent thugs who resort to physical and non-physical pressure
\non the debtors.<\/p>\n
Lawyer Hans Pardamean Siagian from the Edward, Hans, Murphy
\nand Partners Law Office and T. Gayus Lumbuun from the T. Gayus
\nLumbuun & Associates Law Firm said there were many debt
\ncollectors using lawful techniques in order to persuade the
\ndebtors to repay their loans.<\/p>\n
"When it is aimed at curtailing all collection agencies,
\nincluding the good ones, one will ask what the legal basis behind
\nthe purge is? Is debt collecting illegal? Show me the law
\nforbidding the operation of debt collectors?" asked Hans.<\/p>\n
In May, Hans spoke about collection agencies at a seminar
\nattended by bankers at the Shangri-La Hotel, Central Jakarta.<\/p>\n
In his paper, Hans said that the operation of debt collecting
\nservices is legal according to the Civil Code's chapter 1792
\nwhich permits someone to hire a third party to collect the money
\nhe or she lent to other people on his or her behalf.<\/p>\n
"Thus, anyone can be a debt collector," he said.<\/p>\n
Hans also said in the paper he presented in the seminar that
\nthe birth of collection agencies resulted from the bad loan
\nphenomenon which is rampant today and many resort to heavies
\nbecause the existing laws fail to protect the rights of
\ncreditors.<\/p>\n
"The legal process is complicated and time consuming. And
\nthere is no certainty that creditors will get back their money.
\nThus, collection agencies will remain as long as our law system
\nremains weak," Hans stated. (jsk)<\/p>",
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