Jakarta, CNBC Indonesia – Cases of default on online loans and paylaters are on the rise. Keep in mind the consequences could be dealing with the law if there is a failure to pay.
Managing Partner of Rinto Wardana Law Firm, Rinto Wardana, said technological advances make it easier for people to incur debt. Likewise, business actors become mediated to provide an easy way to borrow money.
“When you opened the gadget, you were immediately offered an instant loan,” said Rinto to CNBC Indonesia, quoted on Saturday (21/10/2023).
“Well, this creates a problem where it is easy to incur debt, so problems arise when customers fail to pay,” he added.
Easily getting debt is not only the main factor causing default. According to Rinto, most loan customers have not been educated about the risks of taking out debt.
“Because they are not educated about whether the debt is paid in principal only or with interest and how late it is,” he said
This is different from conventional bank loans, if there is a failure to pay, there are provisions for interest and fines that must be paid in the credit agreement.
According to him, most customers are not informed about how much interest they will pay if they pay late.
If there is a failure to pay, the loan company has the right to make a report to the police on the basis of fraud and embezzlement. According to Rinto, this right arises from the legislation for lending companies to sue their customers.
Apart from that, the loan company can also take this matter to court in a civil manner.
“Lending and borrowing is in the civil realm, there should be an agreement, but in practice customers are rarely given such an agreement, but this does not eliminate the loan company’s right to file a civil lawsuit if a default occurs,” he said.
So the only way to avoid the risk of being sued is for customers to pay installments regularly.
Likewise, before taking out a loan, you should check your personal financial condition to see whether it can be paid, as well as the agreement made regarding how much fines or late interest will be paid.
[Gambas:Video CNBC]
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