Herri Haryanto, Erry Praditya Utama

Fair Legal Protection for Debtors Regarding the Implementation of Collectibility by Banks in the Use of Credit Cards

Introduction

Fair legal protection for debtors regarding the implementation of collectibility by banks in the use of credit cards. Ensuring fair legal protection for credit card debtors in Indonesia concerning bank collectibility. Study recommends regulation improvement and OJK's role in equitable dispute resolution.

Abstract

This study discusses fair legal protection for debtors in the context of the application of collectibility in credit card usage in Indonesia. In practice, the collectibility method often has negative impacts on debtors, particularly in determining credit status and in debt collection practices that may exceed reasonable limits. The author analyzes the theories and legal frameworks governing credit card collectibility as well as the principles of justice in the protection of debtor consumers. The research employs a normative approach through literature studies of laws and legal doctrines. The findings show that the implementation of collectibility must prioritize the principles of fairness and proportionality so that the rights of debtors are not unilaterally harmed. The study recommends the improvement of regulations and the development of a more responsive and equitable dispute resolution mechanism for credit card debtors in default in Indonesia. It also emphasizes the need for state involvement, particularly through the Financial Services Authority (OJK), to play an active role in facilitating dialogue between creditors and defaulting debtors to find fair and effective solutions regarding collectibility.

Review

This paper addresses the critical issue of fair legal protection for credit card debtors in Indonesia concerning the application of collectibility by banks. The abstract effectively highlights the pertinent problem where current collectibility practices often result in adverse consequences for debtors, such as detrimental impacts on credit status and potentially aggressive debt collection methods that may exceed reasonable limits. The study's clear objective is to analyze the theories and legal frameworks governing credit card collectibility, evaluating them against the fundamental principles of justice in consumer protection. Employing a normative legal research approach, the authors conducted a thorough literature review encompassing relevant laws and legal doctrines. A significant finding of the study underscores that the implementation of collectibility must be guided by principles of fairness and proportionality to prevent the unilateral infringement of debtor rights. This contribution is valuable in spotlighting the inherent imbalance in current practices and advocating for a more equitable application of financial regulations, thereby providing a strong argument for re-evaluating the current system. The research concludes with pertinent recommendations that call for both regulatory enhancements and the establishment of more responsive and equitable dispute resolution mechanisms specifically tailored for defaulting credit card debtors in Indonesia. Furthermore, the paper stresses the crucial role of state intervention, particularly by the Financial Services Authority (OJK), in facilitating constructive dialogue between creditors and debtors to forge fair and effective solutions regarding collectibility. Overall, this study presents a timely and relevant contribution to the discourse on consumer protection in the financial sector, offering practical pathways toward a more just and balanced system for vulnerable debtors.

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