CONSUMER PROTECTION ON PEER TO PEER LENDING FINANCIAL TECHNOLOGY IN INDONESIA

Abstract

The development of information technology in Indonesia is more sophisticated increasingly so that the access to information is easier and even affects the country's economy continues to grow. The increasing of online loan applications is one of the impacts of these technological development. However, the problem is that there are many of these applications that do not have a license to provide financial services yet. Whereas the Financial Services Authority (OJK) in this case has required every financial technology to register a license to operate. Noted, 1,330 people reported to the Legal Aid Institute (LBH), there are 89 financial technology applications with the Peer to Peer Lending platform that are suspected of violating laws and human rights against debitors. The report indicates, the ease of lending in online applications makes customers increasingly entangled. The focus of the writer in this paper is how to protect the debitors customers against the debitors information data, as well as how to sanction applications that are arbitrary and do not yet have a granting permit from the Financial Services Authority (OJK). This paper uses normative research method using statute approach and case approach. The findings of this paper are expected to provide an explanation of consumer protection and the legality of financial technology in Indonesia.