VOLUME 1 JUNE 2021 NUMBER 1

SMS Online Loans circulate, can be confirmed the loan is illegal

Salsa Bella Sayidah

Undergraduate Law Student, Trisakti University

During this pandemic, the level of living cost needs is increasing. Nevertheless, it is
not balanced with the income of every community. In times of an increasingly complex
economy, online loan offers often come in via short message, either Short Message
System (SMS) or WhatsApp. This is what makes someone who is in economic
difficulty and needs money due to pandemics to meet basic or consumptive needs
finally tempted by the offer from the Short Message System (SMS). However,
unwittingly it ultimately harms the community because it provides high interest and a
short loan term. This is evidenced by the increasing ratio of non-performing loans
reflected in the default rate of loan repayment (TWP) of the fintech p2p lending
industry.

Information system about load-fintech based on the web is an integrated system

between load product and information technology. Start from submission, approval,
and releasement will be processed online and supported by SMS ( Short Message
Service) or telephone. In this case, the creditor and debtor no need to meet face to
face. In the past, a debtor must go to a BANK or another financial company to get a
load, but now with online fintech-load, every debtor can submit the load at any time
and anywhere as long as they hold a smartphone and computer complete with internet
access. With this Fintech-application online load system will be an intelligent solution
effective. Efficient and will be helpful for someone who got financial problems without
spent time, cost, and energy, with a simple process and fast releasement.

Fintech peer-to-peer (P2P) lending registered with the OJK is prohibited from offering
products or promotions through the Short Message System (SMS). This is stipulated
in OJK Regulation number 07 of 2013 concerning Consumer Protection of Financial
Services Sector. Furthermore, article 19 mentioned, Financial Service Institutions are
prohibited from offering products or services to consumers and the public through

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personal means of communication. Such as email, short message system (SMS), and
voicemail without consumer consent.

Meanwhile, if the fintech lending organizer AFPI member wants to make a promotional
offer, then each request or promotion must include or mention the name and logo of
the Organizer and a statement that has been registered with the OJK. This is stipulated
in Article 35 of OJK Regulation No.77 of 2016. This can be a clear picture, that SMS
or WA that goes on behalf of online loans is illegal online loans.

Even in article 48, the Organizer (fintech lending) must be registered as an associate
member has appointed by OJK, namely AFPI. In addition, in the lending process,
fintech lending noted by OJK is also supported by loan insurance and uses a proven
credit scoring system, such as PEFINDO, to analyze and verify loans.
To prevent people from becoming entangled from illegal online loans, the Financial
Services Authority (OJK) has several characteristics owned by illegal online loans,
namely:
- Illegal online loans often make offers via SMS or WhatsApp messages
- Significantly high interest rates and fines can reach 40% of the loan amount
- illegal online loans set a concise repayment period, infrequently violate the loan
agreement
- Request access to all data on your phone, including contacts, photos, or videos.
This is done to terrorize the debtor if it fails to make a payment
- Illegal online loans do unethical billing in terror is uncommon, even intimidating,
even to harassment.

The Investment Alert Task Force (SWI) noted that, as of June 2021, the government,
through the Ministry of Communication and Informatics, has blocked 3,193 illegal
online loans.
Furthermore, in June 2020, SWI found 105 illegal fintech p2p lending that offers loans
to the public through applications and SMS short messages on mobile phones. To
ensure the status of the permit for offering financial services products received, the
public can contact the OJK Contact.

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The legality of online loans can be accessed through OJK contact at number 157,
WhatsApp contact number 081157157157, email konsumen@ojk.go.id, and website
www.ojk.go.id.