The Legal Risks of Non-bank Sharia Financing For House Purchases and their Implications for Consumer Protection
Ratna Yanuarita, Neni Sri Imaniyati, Arif Rijal Anshori, Reni Trimelawati, Yuliana Indah Sari

Law Faculty, Universitas Islam Bandung

Abstract

Home Ownership is regulated by Law Number 1 Year 2011 on Housing and Settlement Areas. The housing financing system consists of conventional and sharia, formal and informal financing. Formal financing is carried out by formal institutions (banks, finance companies). Informal, community-based financing whose planning, implementation and management are carried out by the community and non-governmental organizations. Informal financing has no specific regulations governing it. For this reason, research was conducted with the aim of (1) Explaining the legal risks of sharia-based non-bank home ownership financing, (2) Finding the legal risk implications of sharia-based non-bank home ownership financing related to consumer protection. Method, normative juridical approach, analytical descriptive research nature. Data used, secondary and primary, purposive sampling technique, qualitative data analysis technique through legal interpretation. Results, Legal risks of sharia-based non-bank home ownership financing, namely unclear regulatory framework, sharia compliance risk, secondary financing securitization risk, institutional risk, and risk of collateral execution. The implications of legal risk have the potential to cause legal uncertainty in dispute resolution, canceled or revocable financing contracts, unclear supervision or control, and institutions that impose sanctions if there are violations. Legal risk implications can have a very significant impact on financial losses, damage to reputation, operational disruption, and business uncertainty. In relation to consumer protection, it affects violations of consumer rights, namely the right to correct, clear, and honest information about the conditions and guarantees of goods or services, protection, and efforts to properly resolve consumer protection disputes that give rise to responsibility of business actors.

Keywords: Legal risk- non-bank Sharia financing- implications of house purchase- consumer protection.

Topic: Law and Ethics in Terms of Islamic Perspective