OJK to Crack Down on Debt Collection Practices for Non-Performing Vehicle Loans

KatadataOTO – The case of the attack on debt collectors (matel) in Kalibata, South Jakarta, has had a long aftermath. Now, the Financial Services Authority (OJK) has stepped in.

They plan to regulate the practice of debt collectors in the process of collecting non-performing vehicle loans in Indonesia.

Moreover, the OJK already has special regulations regarding the procedures for debt collection from consumers.

This policy is stipulated in OJK Regulation (POJK) No. 22/POJK.07/2023 concerning Consumer and Public Protection in the Financial Services Sector.

Photo: 123RF

It explains clear boundaries. Including that collection procedures and processes must be carried out properly.

In addition, creditors are also required to have good governance. So that the incident in Kalibata on Thursday (11/12) night is not repeated.

However, the OJK considers the handling of the Kalibata case to be different. It falls under the jurisdiction of criminal law.

“I think yesterday's incident went further than that, it has entered the realm of legal issues. We will see further developments on that,” said Mahendra Siregar, Chairman of the OJK Board of Commissioners, to Antara on Wednesday (17/12).

Nevertheless, Mahendra stated that from a consumer protection perspective, the OJK has from the beginning stipulated how collections should be carried out.

He also deeply regrets that the incident in Kalibata could happen. It even claimed the lives of two people.

Based on the above, the OJK will look into the possibility of further regulating collection practices.

Especially in the context of the responsibility of the assigning party. Given that creditors cannot release their responsibility to a third party during collection.

The OJK will examine whether there are still regulatory loopholes or additional supervisory steps that need to be strengthened to prevent similar incidents from recurring.

Indeed, the practice of debt collectors during non-performing vehicle loans is quite unsettling for the public.

They often seize property and even commit physical violence when collecting debts from customers. It is not uncommon for this to cause disturbances or clashes.

Such as when two debt collectors were beaten to death while trying to collect a motorcycle debt some time ago.

Photo: Antara

The incident began when the vehicle owner, who had not received a single penny, deployed his friends to collect the debt.

However, two individuals with the initials MET and NAT, who were tasked with collecting the debt, were instead beaten to death by a mob.

The police have named six members of the National Police as suspects. They are Brigadier IAM, Bripda JLA, Bripda RGW, Bripda IAB, Bripda BN, and Bripda AM.