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Arbitrary Debt Collector? Know Your Rights and Protect Yourself from Illegal Collection!

Argha Syifa Nugraha, S.H.

Contributor

15 Jul 2024 · 14:49 15 July 2024 14:49 WIB 5 minutes reading time: 5 minutes 4 read

This article discusses cases of arbitrary debt collection by debt collectors in Indonesia, OJK regulations governing cooperation with third parties, the importance of special power of attorney, and the imp...

Arbitrary Debt Collector? Know Your Rights and Protect Yourself from Illegal Collection!

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Table of Contents

Introduction
OJK Regulations on Collection Cooperation
Sanctions for Violations
The Importance of a Special Power of Attorney in Debt Collection
Differences Between Assignment Letter and Special Power of Attorney
Legal Implications of Collection Without a Special Power of Attorney
The use of debt collection services by financial service providers (PUJK) must comply with strict rules, including a cooperation agreement and a special power of attorney. Violations of these provisions can not only result in severe administrative sanctions for PUJK, but can also create serious legal problems for debt collectors. The public needs to better understand their rights in the face of debt collection actions that do not follow procedures, to protect themselves from arbitrary and unlawful collection practices. With a better understanding of these regulations and legal implications, it is hoped that the public can be more proactive in reporting non-compliant collection actions and demanding better protection from the authorities.

Section 2/3: Sanctions for Violations

Sanctions for Violations

PUJK that violates the provisions of Article 61 POJK No. 22 of 2023 may be subject to various administrative sanctions, including:

Written warning.
Restriction of products and/or services.
Freezing of products and/or services.
Dismissal of administrators.
Administrative fine.
Revocation of product and/or service permits.
Revocation of business license.

Administrative sanctions in the form of fines can reach Rp15,000,000,000.00 (fifteen billion rupiah).

The Importance of a Special Power of Attorney in Debt Collection

In practice, debt collectors often collect debts based only on assignment letters from PUJK. However, according to Article 1792 of the Civil Code, a special power of attorney is required to give the attorney the power to carry out certain actions on behalf of the principal. The special power of attorney explains the specific actions that the attorney may take.

Conversely, an assignment letter is only an instruction from a superior to a subordinate to carry out a specific task within an agency. An assignment letter does not have a strong legal basis like a special power of attorney. Therefore, a debt collector who only has an assignment letter does not have the legal standing to collect debts.

Differences Between Assignment Letter and Special Power of Attorney

Special Power of Attorney: Regulated in Articles 1792 and 1795 of the Civil Code, giving the attorney the authority to take certain actions on behalf of the principal.
Assignment Letter: Not specifically regulated in laws and regulations, usually used in internal relations of agencies or organizations to assign certain jobs.