Unilateral Account Freezing Erodes Consumer Rights
The Indonesian Consumers Foundation (YLKI) considers that the unilateral freezing of customer accounts by banks has the potential to erode consumer rights if carried out without transparency and clarity regarding the basis and reasons for the freeze.
This was conveyed by YLKI in response to the case of Supriyono alias Botok, Coordinator of the Pati United Community Alliance (AMPB), regarding the suspension of transactions or freezing of a Bank Mandiri account worth Rp80.9 million ahead of a protest rally in Jakarta.
YLKI Executive Secretary Rio Priambodo stressed that a bank’s authority to freeze accounts must be exercised proportionally. According to him, this authority must not disregard the rights of customers as consumers.
“Unilateral freezing without clarity can erode consumer rights guaranteed by Law No. 8 of 1999 on Consumer Protection,” Rio said in a statement received by Media Indonesia on Monday (24/8).
He is of the view that banks need to explain the basis and reasons for freezing to consumers, as long as such information does not conflict with confidentiality provisions or applicable legal processes. Consumers have the right to know why their account cannot be used.
“Customers also need to obtain certainty regarding the status of the account and the funds held in it,” Rio said.
According to him, freezing must not cause consumers to lose access to their accounts without certainty regarding the resolution procedure. Banks need to explain the steps customers must take to regain access to their account or funds.
In addition, banks must provide an effective complaint and resolution mechanism. Consumers should not be placed in a weak position when their accounts are frozen, while the explanation received is inadequate and the complaint channel is unclear.
“The principle of prudence and banking security is indeed important, but it must still be balanced with transparency and accountability,” Rio said.
YLKI encourages the bank to provide a transparent explanation to the customer concerned regarding the case. The explanation should cover the basis for the freeze, the status of the account, and the resolution mechanism available to the customer to obtain certainty over access and funds.