OJK Reminds People To Be Wise In Using 'Paylater'

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) reminds the public to be wise when making loans through buy products now, pay later (BNPL) which are adjusted to their needs and ability to pay back and strive to be in debt for something productive.

"It should be remembered that every debt must be repaid in a timely and on a timely basis. If the payment is not in accordance with the provisions, it can cause credit to be stuck and create a bad credit history," Chief Executive of the Behavior Supervisory of Financial Services Business Actors, Education and Protection of Consumers (PEPK) OJK Friderica Widyasari Dewi in Jakarta, quoted from Antara, Wednesday, July 10.

Friderica agrees that paylater products do provide easy transactions and promo offers. However, he said, it should be noted that the public must be able to pay off loans used along with other costs such as administration, interest, fines, and others.

"Currently, paylater loans have also been included in the listing of credit history in the Financial Information Service System (SLIK OJK Checking). This means that the history of payment of paylater installments can affect consumer credit history," he explained.

Friderica emphasized that paylater consumers must be responsible for debt and maintain a credit history. This is because loans and credit history describe personal characters.

In addition, credit history can also have an impact on other aspects of life such as the work application process or loan application in the financial services sector.

Bad credit history, explained Friderica, indicates a character who is unable to manage money so that he is considered vulnerable to fraud/fraud, risks damaging the company, or experiencing non-performing loans or defaults in long-term loans such as mortgages.

"People need to equip themselves with financial management capabilities in order to distinguish between needs and desires, so as to be able to control themselves from consumptive behavior and get caught up in unproductive debt," Friderica said.

In addition to paying according to the agreed value, OJK also reminds that paylater consumers have other obligations such as listening to information instructions; reading, understanding and implementing a standard agreement; have good intentions; provide correct information/document; and follow efforts to resolve consumer protection disputes.

On the other hand, paylater consumers also have the rights, including choosing financial products and services, obtaining information about financial products and services, receiving financial education, being treated/served properly, and getting protection and dispute resolution efforts.