Regarding Loan Collection, OJK Sets Stricter Rules

JAKARTA - The Financial Services Authority (OJK) strengthens the rules regarding good billing ethics carried out by peer-to-peer (P2P) lending fintech industry operators for online loan recipients (pinjol).

"Regarding the billing, we have set a more rigid arrangement regarding the billing mechanism that is allowed to be carried out by the organizers," said Deputy Director of OJK Technology-Based Financing Business Supervision Mohammad Arfan quoting Antara.

In the Webinar on Opportunities and Fintech Challenges P2P Lending Post-Launch of SE OJK 19/2023, Arfan said the strengthening of ethical arrangements was carried out in response to the issue of unethical billing of consumers.

Collection Ethics is regulated in the Circular Letter of the Financial Services Authority (SE OJK) Number 19 of 2023 concerning the Implementation of Information Technology-Based Joint Funding Services.

Organizers must ensure that billing personnel have received adequate training related to billing and ethical billing tasks in accordance with applicable regulations.

In carrying out collection, billing personnel do not use methods of threats, violence and/or actions that are embarrassing for recipients of funds.

The billing staff used an official identity card issued by another party in collaboration with the organizers, which is equipped with a photo of the person concerned.

SE OJK also stipulates that collection is not allowed by using physical and verbal pressure.

Collection is carried out by avoiding the use of words and/or actions that intimidate and demean ethnicity, religion, race, and intergroup (SARA), dignity, dignity, and self-esteem, in the physical world as well as in cyberbullying to recipients of funds, emergency contacts of recipients of funds, relatives, colleagues, family, and property.

Based on the SE OJK, collection is not allowed to be made to other parties besides the recipient of the funds. In addition, billing using communication facilities is not allowed to be carried out continuously which is disturbing.

Collection can only be done through private channels, at collection addresses, or domicile recipients of funds. Collection can only be carried out from 08.00 to 20.00 in the area of the address time of the recipient of the funds.

Further collection outside the place and/or at that time can only be done on the basis of approval and/or agreement with the recipient of the funds first.

It is known that public complaints related to loan collection in online loan services in the peer-to-peer lending fintech industry reached 35.29 percent of the total 4,548 complaints.

The number of public complaints against Information Technology-Based Joint Funding Services (LPBBTI) or fintech peer-to-peer lending received by OJK for three years reached 4,548 complaints.

Complaints received in 2020 were 25 complaints, then a significant increase in 2021 was 1,726 complaints, and in 2022 there were 2,797 complaints.

The behavior of billing officers has the highest portion of 35.29 percent, followed by restructuring or relaxation of 16.40 percent credit, external fraud in the form of fraud, account burglary, skimming, cyber crime 14.71 percent.