Legal Literacy - This article explains the legal basis for illegal online loan payments according to positive law in Indonesia.

The Rise of Online Loans

It is not surprising that the application online loan is now widespread in society, due to the easy and fast requirements to be able to get a lot of money instantly. Because in practice, to disburse a number of funds, consumers only need to upload their ID card and then the promised money will be immediately disbursed.

Online loans have become widespread due to the increasing need for people to meet their daily needs, food prices are increasing but people's income does not increase, which is also a factor in why people register for online loans. However, the public has a lack of understanding regarding online loans that are spread across various social media platforms, because not all online loan applications have permits under the auspices of the Financial Services Authority (OJK).

Illegal Online Loans

In principle, online loans can be said to be illegal because they are not licensed and not registered with the Financial Services Authority (OJK) in accordance with Financial Services Authority Regulation (POJK) Number 77/POJK.01/2016 concerning Information Technology-Based Money Lending Services.

In addition, the implementation of online loans must be under the auspices of the OJK by following all the requirements. Because if this is violated, the online loan organizer will receive sanctions administrative in the form of fines, restrictions on business activities, and revocation of permits, may be imposed with or without prior imposition of administrative sanctions in the form of written warnings. Meanwhile, administrative sanctions in the form of fines can be imposed separately or together with restrictions on business activities and revocation of permits.