Debts to Illegal Online Lenders: To Pay or Not to Pay? – Opinion


Yosea Iskandar (The Jakarta Post)


Jakarta ●
Tue, October 26, 2021

The recent police raids on the offices of illegal digital lenders, also known as illegal pinjol, show the government’s firmness against such operations. Much has been done to eradicate crime, which targets online victims, including shutting down thousands of unregistered digital loan accounts and imposing a moratorium on fintech lending licenses.

A senior government official also said that due to the illegal nature of the illegal pinjol business model, existing money loan agreements with their borrowers can be canceled. Departing from the usual advice of encouraging borrowers to pay off debts quickly or trying to negotiate a restructuring, he further suggested that borrowers should not repay their loans out of time. illegal pinjol.

Unfortunately, not everyone can tell the difference between illegal and legal lenders. Lack of understanding can lead a borrower to pass judgment and stop paying installments to a legitimate lender. This will cost the borrower more interest and penalties. Both parties will then have to devote more time and effort to resolving the dispute arising from the borrower’s unilateral action. Without clear guidelines and additional clarifications, the suggestion to stop payments can be a challenge for the online lending industry.

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