Debt Collection for Online Loans Has Rules: What You Need to Know

JAKARTA, KOMPAS.com - The practice of collecting online loans or pinjol has once again drawn public attention amid numerous reports from the public regarding collection methods deemed intimidating.

Threats, phone terrorism, dissemination of personal data, and shaming borrowers in their work environments are forms of collection frequently complained about.

Amid the prevalence of such cases, regulations on the procedures for collecting online loans have actually been detailed, both by the Indonesian Joint Funding Fintech Association (AFPI) and through the Financial Services Authority (OJK) Regulation.

In OJK Regulation No. 22 of 2023 on Consumer and Public Protection in the Financial Services Sector, OJK emphasises the strengthening of collection rules to protect consumers from practices that violate norms and cause physical or psychological disturbances.

“This regulation also encourages financial service institutions to ensure that the products/services offered match the needs and capabilities of prospective consumers, thus being more cautious or selective in disbursing credit or financing,” said OJK.

AFPI asserts that online loans still have collection mechanisms like other credit products in financial institutions if customers default on payments.

“This perception is very inaccurate,” AFPI writes on its official page.

According to AFPI, collection is still carried out when borrowers default. However, it must follow applicable rules.

Usually, the initial step involves sending messages via email or short messages.

AFPI states that funding fintech companies will employ various methods in accordance with provisions to find solutions so that borrowers can repay their loans, similar to practices in banks or other financial institutions.

In addition, payment delay data can also be recorded in the Debtor Information System (SID), which can be accessed by other financial institutions.

“This SID records all loans of debtors, both in banks, finance companies, and funding fintech,” AFPI revealed.

OJK emphasises that collection must be conducted in accordance with societal norms and applicable legal provisions.

In those regulations, collection must be carried out in the following ways:

OJK also emphasises that joint leave days are categorised as national holidays, so collection must not be done on those days.

Meanwhile, for collections on Sundays, this can only be done if there is prior agreement or contract with the consumer.

In addition to OJK provisions, AFPI also regulates technical limits on collections through industry behavioural guidelines for fintech lending.