Illegal online loans are like weeds. It’s hard to be cut down. Of the thousands of financial technology (fintech) operating in Indonesia, as of April 30, 2020, only 161 companies were registered and licensed at the OJK (Financial Services Authority). In the past two years, the Investment Alert Task Force (SWI) has handled more than two thousand illegal fintech lending entities. Unfortunately, after the blocking of illegal online loans was carried out, it didn’t take long for illegal loans to appear with a different name.

In fact, illegal online loans are like online loan sharks who can “choke” debtors. Not only is the imposition of interest and borrowing costs unreasonable, the manner of collection is often inhumane.

But, is it necessary to pay off debts from illegal online loans? Hasn’t this lender who is not licensed by the OJK committed a fraud?

Paying the loan is mandatory, but … Getting caught up in illegal online loans is a nightmare for everyone. Because, in a short time, the amount of debt can multiply far above the principal amount of debt. If debt could be ignored, it would be a relief. Is it right?

Unfortunately, debt remains a debt that must be paid. As stated by the Chairman of SWI Tongam L Tobing, which was reported by Detik, even if the online loan is illegal, the borrower is obliged to pay the debt taken so that he must first settle the debt.

If, debt collection is carried out with acts of violence or harassment, this is certainly not legally justified. However, this does not mean that the debtor’s debt is paid off.

By law, loans basically use contract principles and are regulated in the Civil Code.

Referring to legal education media in Indonesia, it is known that the agreement made between the lender and the recipient of the loan can be canceled if the organizer has an unlicensed or illegal status.

Cancellation of this agreement does not mean to abort the debt but the goods concerned before the agreement is made, in this case the loan funds must be returned or returned in their original state. This means that basically the debtor is still required to return all the money that has been borrowed.

What if the debtor is unable to Payday Loans?


The risk of default on online loans cannot be underestimated. Who wants to bear the shame of being in debt and often being scolded by debt collectors?

But did you know that a debtor cannot be imprisoned just because of a debt or credit case? In other words, the court cannot convict a person who has defaulted on a debt due to an inadequate financial condition.

On the other hand, illegal online loan service providers can actually be ensnared by more than one criminal article. Especially if the online loan is related to billing actions that violate the law.

For example, the ITE Law on the spread of personal data and terror in collection, Article 378 of the Criminal Code for fraud, and much more. Immediately report if terrorized by debt collectors

If an online loan provider, whether registered with the OJK or not, collects debt with acts of violence, immediately report it to the police in order to get legal protection.

Later, you need to tell the chronology of events, and provide evidence that can strengthen your report. For example, evidence of recorded telephone conversations, screenshots of conversations that show threats, and other evidence of terror.