OJK warns Indonesians about illegal online lenders


Padang, West Sumatra (ANTARA) – The Financial Services Authority (OJK) has warned the public against lending from illegal fintech companies, saying these companies charge customers high interest and can potentially cause them debt. wrong.

“The characteristics of illegal online lending services are indicated by high interest rates, unclear loan terms and very easy loans,” West Sumatra Financial Services Authority chief Yusri said on Tuesday. , in Padang.

“Moreover, the other features of illegal online loans are unlimited interest or borrowing costs, and total return including unlimited interest,” he said.

They also fail to provide the company’s address on the app or website, exclude contact numbers for complaints, and charge fees incorrectly, Yusri said.

In addition, the management of these companies also requests access to contact lists on mobile phone devices and other personal documents, he added.

“Usually they make offers via SMS, WhatsApp or private communication channels without authorization,” he said.

Yusri advised the public to borrow money from companies registered with the Financial Services Authority.

“Borrow according to (your) needs and abilities only for productive interests,” he said.

He also stressed that the public must understand the benefits, costs, interest, conditions, fines and risks of taking out a loan.

Related news: Ministry blocks 151 unlicensed P2P fintech lenders

People who have borrowed money from illegal online lenders in the past should repay the loan immediately to avoid an increase in the interest burden, he said.

They are also urged to report these companies to the Investment Alert Task Force, he said. If they have limited repayment capacity, it is better to ask for a loan restructuring in the form of reduced interest, extended term and elimination of fines, he added. .

He also urged people to refrain from finding new loans to pay off their old debts if they were unable to pay the original loan.

If customers are threatened by unethical means, they should block all contact numbers from which threatening calls are received and notify all contacts on their phones to ignore online lending related messages, a Yusri said.

As of October 6, 2021, the total number of fintech peer-to-peer lenders registered and licensed with financial services authorities stood at 106, Yusri said.

As of August 31, 2021, the number of lenders offering online legal lending services reached 749,175 and the number of borrowers reached 68,414,603, he added.

The total funds that were disbursed through the legal online lending services reached Rp.24993 trillion (nearly US $ 18 billion), with the outstanding debt set at Rp. $ 26.09 trillion (approx. US $ 2 million).

Related News: Government has blocked access to 4,873 illegal fintech content since 2018

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