Friderica Widyasari Dewi, the Executive Head of the Financial Services Business Behavior Supervisory, Education, and Consumer Protection (PEPK) OJK, revealed that the agency has received 1,672 complaints indicating violations related to debt collector behavior. These complaints were based on data from the Otoritas Jasa Keuangan (OJK) consumer service, with the majority of violations related to debt collector behavior occurring in online loan services, with 1,106 complaints.
Debt Collection Regulations
According to Friderica, there were a total of 1,672 complaints indicating violations related to debt collector behavior, with a breakdown of 1,106 complaints in online peer-to-peer lending services (pinjol), 179 in financing companies, and 387 in banking institutions. The mechanism for credit and financing collection is regulated in OJK Regulation Number 22 of 2023 concerning Consumer and Community Protection in the Financial Services Sector.
Regulations on Debt Collection
Debt collection regulations include prohibitions against using threats, violence, or actions that embarrass consumers; physical or verbal pressure; and collecting from anyone other than the consumer. Debt collection is also not allowed to be continuous in a way that disturbs consumers, must take place at the consumer’s billing address or domicile, and only on Monday to Saturday outside of national holidays from 08:00-20:00 local time.
Advertising Violations
Furthermore, OJK also regulates the promotion or advertisement of financial products. Friderica mentioned that as of the third quarter of 2024, there were 229 violations out of a total of 14,481 advertisements monitored (1.58 percent). The most common violations were found in the PVML sector (Financial Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services) at 2.80 percent (99 out of 3,536 advertisements).
Enforcement Actions
By December 24, 2024, OJK had imposed 7 administrative sanctions in the form of fines and 26 administrative warnings for violations of consumer protection provisions in information provided in advertisements, marketing procedures for products/services, and debt collection procedures.
In conclusion, OJK’s efforts to enforce regulations and ensure compliance with consumer protection measures are crucial in maintaining the integrity and fairness of the financial services sector. Awareness and adherence to these regulations are essential for protecting consumers and promoting trust in the industry.
As a personal touch, imagine receiving an unexpected call from a debt collector demanding immediate payment. How would you feel in that situation? The regulations put in place by OJK aim to prevent such distressing encounters and ensure fair treatment for all consumers. Let’s strive for a financial system that prioritizes consumer protection and ethical practices.
