Is an online loan debt automatically written off after 90 days? Here's the explanation.
Jakarta, CNBC Indonesia - Many people wrongly believe that online loan debt (pinjol) will automatically be written off if payment is missed for 90 days. In fact, this isn’t true.
Under OJK Regulation No. 10/POJK.05/2022, a delay in paying principal or interest for more than 90 days is categorised as non-performing loan (TWP 90). This status does not extinguish the debt.
The customer continues to have an obligation to settle the loan, and the operator of the pinjol is entitled to take legal action to resolve the issue.
In addition, a defaulter (galbay) will also be reported to the OJK Financial Services Information System (SLIK). Consequently, their name is blacklisted, making it difficult to obtain loans from any financial institution.
Besides the legal burden, interest continues to accrue. The 2022 OJK rule sets the legal interest rate for consumer online loans at 0.4% per day for tenors under 30 days, while productive loans can carry interest of 12%-24% per year.
The Chief Executive of Monitoring of Conduct of Financial Service Providers, Education and Consumer Protection at OJK, Friderica Widyasari Dewi, emphasised that customers should not stay silent if they cannot pay.
“If you do not want to meet a debt collector, pay your obligations. If you really cannot, it is better to proactively apply for restructuring,” said Friderica, who is familiarly known as Kiki.
Nevertheless, OJK also emphasises that it will not protect consumers who are acting in bad faith and deliberately do not repay their loans.
Debt collection period
Online loan debt indeed does not have a defined expiry; however, under OJK Regulation No. 22 of 2023, Article 62, financial service providers must ensure that collections to consumers are conducted in accordance with social norms and applicable laws.
Therefore, financial service providers must ensure that collection does not involve threats or actions that humiliate consumers. Collections also must not be intimidating or carried out continuously.
The regulation specifies that collections should take place at the address or domicile of the consumer from Monday to Saturday, excluding national holidays, between 08:00 and 20:00 local time. A debt collector may conduct collections outside the specified place and time, but only with prior consumer consent.
Friderica Widyasari Dewi also reminded that consumers should not only request consumer protection rights but also be responsible in making payments.
“We continue to educate that if you do not want to meet debt collectors, pay your obligations as required,” said the woman known as Kiki a while ago.
If consumers cannot pay, Kiki recommends actively requesting restructuring from the financial institution. However, she said the final decision on restructuring is the right of the financial company.
“But rather than being chased around, it’s better to be proactive yourself if you have obligations that you cannot meet yet,” she said.
OJK also emphasised that it will not protect bad-faith consumers who deliberately default on their credit payments.