The Use of Peer to Peer Lending as a Financial Technology Innovation for Borrowers Authorization by the Financial Services Authority Yuliana Indah Sari
Doctoral student in Law at Bandung Islamic University and lecturers at the Faculty of Law, Riau Islamic University
Abstract
The rapid growth of the business world has led borrowers to switch to using Financial Technology platforms. One of these is Online Loans or Peer To Peer Lending, which is conducted without face-to-face meetings and is only integrated with the internet network. Many borrowers use Peer To Peer lending because it offers convenience. However, borrowers have not responded well to this convenience, as evidenced by the discovery of borrowers who use online loans from more than one platform, which ultimately harms them because they are unable to pay their installments, including late fees. This study aims to determine how the use of Peer-to-Peer Lending is restricted for borrowers based on POJK, and secondly, how OJK plays a role in protecting borrowers who are unable to pay their loans. This study uses a normative method. The results of this study are as follows. First: restrictions on the use of peer-to-peer lending for borrowers based on OJK regulations refer to OJK Circular Letter Number 19/SEOJK.06/2023, which states that borrowers may only be granted online loans from no more than three platforms, must use personal data when borrowing, must pay attention to the interest rate applied, and must repay the loan in accordance with the electronic contract. Second: OJK has a role as a regulator by issuing POJK No. 22 of 2023 concerning Consumer and Community Protection in the Financial Services Sector, and OJK has a role as a supervisor by actively monitoring the operations of Peer-to-Peer Lending companies.
