The mode of online loan fraud is widespread in the media. This is common because Indonesia’s fintech industry is relatively young and therefore, still very dynamic.
The number of online lending service providers is booming
The licensing process is still rolling in, new regulations are still being developed, while existing regulations are still being refined. In the early phases of this industry development, it is not surprising that there will be persons that will abuse gaps that are not covered by definitive play rules.
Every online lender who is officially registered with the Financial Services Authority (a state agency responsible for the continuation of information technology-based lending activities) should take note of and keep up to date with any news related to online fraud cases.
Because, in each news story, there are many valuable lessons: how can we convince consumers that the loans offered come from trusted sources? How can I be transparent to consumers? How do I convince the public that online-based lending activities have the same credibility as conventional bank loans?
Online lending providers offer a number of features
That conventional banks don’t offer: the terms of reference are generally sufficient to show your ID and NPWP, the approval process is done in minutes, the disbursement process is done within hours, and all this can be done through a smartphone application. Because fintech offers so much convenience, it is possible for a consumer to psychologically “forget” that the money earned is a loan that must surely be repaid.
This may be a very logical point for the general public, but in fact, it is not always so. The rules of the fintech industry in Indonesia are still growing. Unfortunately, by this writing, some of the public need to be reminded that the rules of lending-borrowing themselves are clearly, firmly, in line with universal standards.
If you are looking for an online loan because of an urgent need, both consumer and productive, make sure you choose the loan amount according to your financial ability. In measuring ability, consider also the interest rate charged on the loan amount. Generally, the interest rate set by online lenders is greater than the conventional bank, as the lender can approve and liquidate the loan within hours.
This is the speed at which online loan lenders
Are entitled to more expensive rates, and this – in addition to being a source of income for the organizers – is a joint venture between organizers and funders. For some organizers, the lender or lender is a bank or conventional financial institution.
Capacity also includes your ability to repay the amount of the loan that is being applied within the specified deadline. Timing is important for two things: first, customer credit eligibility. If you are proven to be able to repay the loan on time, then the organizers will be more confident in raising your credit limit with lower interest rates. Second, the interaction with the debt billing team will be minimal.
Like a commercial bank, every online lender has a dedicated unit dedicated to collecting a debt. Each of the authorized online loan providers will list this debt collection procedure on the new account registration page in the application. Before you click “agree”, we recommend that you read these procedures carefully to understand the steps that can be taken by the organizer in the event of a payment delay.
The billing ethics that apply to every official organizer are to limit communication only to the customer concerned. However – for example – if the customer concerned has been delayed for up to a month and cannot be reached, the organizer has the right to take specific steps to ascertain the existence of the customer. This could be contacting a family member or a relative. It is not uncommon for such steps to prompt the customer to take legal steps because they feel humiliated or their privacy is being compromised.
But keep in mind here that when you click “agree” when creating an account, a customer automatically declares himself “agree” to accept more stringent action from the organizer in the event of a prolonged delay. In short, the money that the lender offers online comes from a credible source, and therefore all related parties have an obligation to repay the loan. In the short term, Indonesia’s fintech industry has been able to meet the needs of a society that has not been met by conventional financial institutions or simply has an urgent need. All stakeholders have the opportunity to make the fintech industry a new and solid pillar in supporting the national economy.