Expert Urges AFPI and OJK to Overhaul Third-Party Debt Collection Licensing

Financial Consultant and Planner Elvi Diana has urged the Indonesian Joint Funding Fintech Association (AFPI) and the Consumer Education and Protection division of the Financial Services Authority (EPK OJK) to immediately conduct a thorough evaluation of the governance of third-party usage in debt collection activities. The call was made in response to an alleged sexual assault committed by a debt collector against a consumer in Purworejo, Central Java. The alleged case gained public attention after being revealed through a post on the Instagram account @manangsoebeti_official and various media reports. “Evaluation of third-party governance is not sufficient if it is only carried out on administrative aspects; it must cover the entire management cycle of debt collection service providers, from the selection mechanism, supervision, monitoring, to performance evaluation,” Elvi said in Jakarta on Saturday. AFPI, as the association for online lending (pindar) in Indonesia and the authority that grants permits to financial services debt collection companies, must be responsible and impose strict sanctions on Kredivo and KreditFazz. “Any element of violence, intimidation, harassment, or other actions that violate the law and consumer rights is unjustifiable,” Elvi stated. She emphasised that Financial Services Business Actors (PUJK) have a responsibility to ensure that the entire collection process, including that carried out through third parties, is conducted in accordance with legal provisions, ethics, and consumer protection principles. The alleged harassment during the collection process is a very serious issue and must serve as a momentum for companies to conduct a comprehensive evaluation. Elvi also requested that the OJK ensure the evaluation of collection governance by Kredivo and KrediFazz is carried out effectively in accordance with applicable regulations. “The OJK needs to ensure that the evaluation of third-party governance is conducted comprehensively so that collection practices that do not comply with consumer protection principles do not recur,” she added. As widely reported in the mass media, a Kredivo consumer had arrears of IDR 4.4 million and stated that she was not yet able to settle her obligations. The consumer claimed she was given a one-week deadline by the debt collector. However, before the deadline expired, the collector contacted her again and asked to meet. During the meeting, according to the consumer’s account posted on social media, one of the options offered to settle the obligation was a request that led to an immoral act. The allegation has triggered public concern and prompted calls for an evaluation of third-party collection practices. Elvi stressed that all forms of harassment against women are unjustifiable. “The alleged harassment must be followed up through an objective investigation process by the authorities. If a violation is proven, every responsible party must be processed according to the applicable legal provisions,” she asserted.