Can Debt Collectors Chase You at the Office? Here Are the Rules
Jakarta, CNBC Indonesia — Customers who default on loans are often shadowed by debt collectors. It is not uncommon for these collectors to visit the homes or even offices of delinquent debtors.
Under Financial Services Authority Regulation (POJK) No. 22 of 2023, financial service providers are allowed to use third-party services for debt collection. However, there are a number of rules that must be followed.
These rules stipulate that peer-to-peer (P2P) lending operators are prohibited from using threats, intimidation, and other negative actions, including those involving ethnicity, religion, race, and inter-group relations (SARA), during the collection process.
Agusman, Chief Executive of the OJK’s Supervisory Board for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions (PVML), stated that financial service providers are fully responsible for all collection processes. This means that debt collectors contracted by the provider operate under the provider’s responsibility.
Article 306 of the Financial Sector Development and Strengthening Law (UU PPSK) stipulates that if a financial sector business actor (PUSK) commits violations during debt collection, including providing false information to consumers, they face a minimum prison sentence of 2 years and a maximum of 10 years, along with a minimum fine of Rp 25 billion and a maximum of Rp 250 billion.
Under POJK 22/2023, debt collection must be conducted at the consumer’s billing address or domicile from Monday to Saturday, excluding national holidays, between 08:00 and 20:00 local time.
However, collection can be carried out at other locations, such as an office, provided that prior consent is obtained from the consumer.
In full, the following are the permissible and prohibited actions for debt collectors during the collection process:
Must not use threats, violence, and/or actions that humiliate the consumer.
Must not apply physical or verbal pressure.
Must not contact parties other than the consumer.
Must not conduct continuous collection efforts that are disruptive in nature.
Collection must be at the consumer’s billing address or domicile.
Collection is only permitted Monday to Saturday, excluding national holidays, from 08:00 to 20:00 local time.
Must comply with all applicable laws and regulations.
Meanwhile, the Financial Services Authority (OJK) has emphasised that it will not protect rogue consumers who demonstrate bad faith in repaying their credit.