How to Deal with Debt Collectors?

Bittime - For many people, the term debt collector is not unfamiliar, especially in the era of the rise of online loans (pinjol) and bank credit.

A debt collector is a party tasked with collecting debts from delinquent debtors. However, debt collection practices often create fear due to abusive or illegal methods.

This article comprehensively discusses what a debt collector is, the legal regulations applicable in Indonesia, debtors' rights when dealing with debt collectors, and how to deal with online loan debt collectors safely, wisely, and legally.

What is a Debt Collector?

Simply put, a debt collector is someone who collects debts. They can be from an internal company team, a third party, or even a specialized collection agency.

Their main duties include:

• Collecting payment of outstanding debts.
• Verify debt data before making collections.
• Develop a payment plan that suits the debtor's condition.

In practice, debt collectors may work for a commission based on the amount of debt collected. However, it's important to understand that they remain bound by legal and ethical rules.

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Legal Regulations for Debt Collectors in Indonesia

Many debtors do not know that debt collector activities actually have a clear legal umbrella.

Some important regulations include:

1. Bank Indonesia Circular Letter No. 14/17/DASP/2012
   
    
   • Billing can only be done between 08.00–20.00 WIB.
   • Must bring official identification.
   • It is prohibited to use threats, violence, or humiliate debtors.
     
      
2. Financial Services Authority Regulation (POJK) No. 6 of 2022 & No. 22 of 2023
   
    
   • Prohibiting debt collection by physical or verbal intimidation.
   • Billing can only be done to the debtor, not family or other parties.
   • There are administrative sanctions up to and including revocation of business permits if the rules are violated.

In other words, debtors' rights to confront debt collectors are protected by law. If violations occur, debtors can report them to the Financial Services Authority (OJK), Bank Indonesia (BI), or other authorities.

Debt Collection Ethics

In addition to the law, there are ethics that must be followed by debt collectors, among others:

• Do not use harsh words.
• Do not make physical contact.
• Do not accept money outside of official procedures.
• Must dress neatly and professionally.
• Prioritize persuasive methods over intimidation.

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How to Deal with Debt Collectors Wisely

Dealing with debt collectors is certainly not easy. However, there are practical steps to stay safe:

1. Know Your Rights
   Learn BI and OJK regulations. Don't let debt collectors act arbitrarily.
   
    
2. Stay calm
   Don't panic or get emotional. Remember, intimidation is illegal.
   
    
3. Ask for Written Proof
   Ensure the debt collected matches the records. You have the right to request a power of attorney or official documents.
   
    
4. Don't Give Out Personal Data Carelessly
   Avoid giving out account numbers or other sensitive data.
   
    
5. Negotiate a Payment Plan
   Propose realistic solutions according to your financial capabilities.
   
    
6. Report Any Violations
   If a debt collector threatens or violates ethics, immediately report it to the OJK or the police.

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Conclusion

Debt collectors have official duties, but they must operate within the law and ethics. As a debtor, it's important to understand your rights when dealing with debt collectors to avoid being easily intimidated.

By remaining calm, verifying your debt, and adhering to legal rules, you can deal with debt collectors more wisely and safely.

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FAQ

What is a debt collector?

A debt collector is an individual or company tasked with collecting debt payments from debtors who have failed to pay.

What does debt collector mean in Indonesian?

The word "debt collector" means someone who collects debts. Although the term is popular in English, legally in Indonesia it's called "penagah utang" (debt collector).

How to deal with loan shark debt collectors?

Remain calm, ask for official proof, do not provide personal data, and report any intimidation or violence to the OJK.

What are the debtor's rights when facing debt collectors?

Debtors have the right to be protected from threats, violence, debt collection outside official hours, and have the right to request written proof of debt.

Is the work of debt collectors regulated by Indonesian law?

Yes, the legal regulations for debt collectors in Indonesia are stated in SE BI 14/17/DASP/2012 and POJK No. 6/2022 and No. 22/2023.