Regulators must establish clear guidelines and regulations

Oct 13, 2025 by talynt.org 93 views

Juridical Analysis of the Practice of Financial Technology (Fintech) in the Risk of Borrowing and Borrowing Money Online in Smart Credit Applications

Introduction

In the era of the Industrial Revolution 4.0, the financial service sector has witnessed a rapid development of technology innovations, particularly in the form of information-based money lending services known as financial technology peer-to-peer lending (fintech P2PL) through smart credit applications. These services have offered various benefits, including increased accessibility to financial services and reduced transaction costs. However, smart credit practices often reap polemics in the community, especially related to low financial literacy rates and lack of transparency regarding risks in loan borrowing agreements online. This can cause violations to the rights of service users.

The Validity of Money Borrowing Agreement

One of the crucial things in this study is the validity of the money loan agreement that occurs in the smart credit application. Based on the legal provisions in Articles 1320 to 1338 of the Civil Code (KUHPER), this borrowing and borrowing agreement has fulfilled the legal requirements of the agreement, giving rise to legal relations between the parties. However, practice in the field shows that the lack of obligations from the P2PL fintech organizer to provide responsibility for the mistakes made by one of the parties can harm the user.

The validity of the agreement is a critical aspect that must be considered in the context of fintech P2PL. The agreement must be transparent, clear, and concise, outlining the rights and obligations of both parties. However, in many cases, the agreement is often complex and difficult to understand, leaving users vulnerable to exploitation. This highlights the need for regulators to establish clear guidelines and regulations to ensure that fintech P2PL operators provide transparent and fair services.

Responsibilities of the P2PL Fintech Organizer

In the context of the responsibility of the P2PL fintech operator, there is an urgent need to ensure the protection of user rights. Although the legal provisions already exist, not a few organizers are not transparent in their operations. This has the potential to cause risks for the debtor, who often do not realize their obligations and rights in the agreement. Therefore, it is essential for users to understand the contents of the agreement thoroughly before agreeing to the existing requirements.

The responsibility of the P2PL fintech operator is a critical aspect that must be considered in the context of fintech P2PL. The operator must provide transparent and fair services, ensuring that users are aware of their rights and obligations. This includes providing clear information about the loan terms, interest rates, and repayment schedules. The operator must also ensure that users are not exploited, and that their rights are protected.

Legal Protection for Debtors

Legal protection for debtors in smart credit applications can be done preventive and repressively. As regulated in Article 29 of the Financial Services Authority Regulation (POJK) Number 77/POJK.01/2016, information transparency and risk disclosure are very important in maintaining user interests. Service providers must be fair, maintain data confidentiality, and ensure user information security.

In terms of repressive protection, based on Article 38 POJK Number 1/POJK.07/2013 concerning Consumer Protection in the Financial Services Sector, the organizer is required to offer compensation or improvement if there are complaints from users who are proven to be disadvantaged. This is an important step in building trust between organizers and users, as well as maintaining the integrity of the fintech industry itself.

Preventive Protection

Preventive protection is an essential aspect of legal protection for debtors in smart credit applications. This includes ensuring that users are aware of their rights and obligations, and that they are not exploited. The operator must provide clear information about the loan terms, interest rates, and repayment schedules, and ensure that users are not subjected to unfair or deceptive practices.

Repressive Protection

Repressive protection is also an essential aspect of legal protection for debtors in smart credit applications. This includes providing compensation or improvement to users who are proven to be disadvantaged. The operator must be held accountable for any harm or damage caused to users, and must take steps to prevent similar incidents from occurring in the future.

Conclusion

Thus, although other smart credit applications and P2PL fintech have the potential to increase public access to financial services, there are various risks that must be managed. The validity of the agreement, the organizer's responsibility, and legal protection for the debtor are important aspects that must be considered to create a safe and transparent financial ecosystem. The community needs to better understand their rights and obligations in the loan agreement to borrow money online, and the organizer must be more responsible in providing transparent and fair services.

Recommendations

Based on the findings of this study, the following recommendations are made:

Regulators must establish clear guidelines and regulations to ensure that fintech P2PL operators provide transparent and fair services.
Fintech P2PL operators must be more transparent in their operations, providing clear information about the loan terms, interest rates, and repayment schedules.
Users must be aware of their rights and obligations in the loan agreement, and must not be exploited.
Regulators must provide legal protection for debtors in smart credit applications, including preventive and repressive protection.
Fintech P2PL operators must be held accountable for any harm or damage caused to users, and must take steps to prevent similar incidents from occurring in the future.

By implementing these recommendations, the fintech industry can create a safe and transparent financial ecosystem, protecting the rights of users and promoting fair and responsible lending practices.
Frequently Asked Questions (FAQs) about Juridical Analysis of the Practice of Financial Technology (Fintech) in the Risk of Borrowing and Borrowing Money Online in Smart Credit Applications

Q: What is fintech P2PL, and how does it work?

A: Fintech P2PL, or peer-to-peer lending, is a type of financial technology that allows individuals to lend and borrow money directly from each other, without the need for traditional financial institutions. This is done through online platforms, where borrowers can apply for loans and lenders can invest in them.

Q: What are the benefits of fintech P2PL?

A: Fintech P2PL offers several benefits, including:

Increased accessibility to financial services
Reduced transaction costs
Faster loan processing times
Higher interest rates for lenders
Lower interest rates for borrowers

Q: What are the risks associated with fintech P2PL?

A: Fintech P2PL carries several risks, including:

Lack of transparency and regulation
High interest rates and fees
Risk of default and non-payment
Lack of consumer protection
Potential for scams and fraud

Q: What is the validity of the money borrowing agreement in fintech P2PL?

A: The validity of the money borrowing agreement in fintech P2PL is a critical aspect that must be considered. Based on the legal provisions in Articles 1320 to 1338 of the Civil Code (KUHPER), this borrowing and borrowing agreement has fulfilled the legal requirements of the agreement, giving rise to legal relations between the parties.

Q: What are the responsibilities of the P2PL fintech organizer?

A: The P2PL fintech organizer has several responsibilities, including:

Providing transparent and fair services
Ensuring that users are aware of their rights and obligations
Maintaining data confidentiality and user information security
Providing clear information about the loan terms, interest rates, and repayment schedules

Q: What is the legal protection for debtors in smart credit applications?

A: The legal protection for debtors in smart credit applications can be done preventive and repressively. As regulated in Article 29 of the Financial Services Authority Regulation (POJK) Number 77/POJK.01/2016, information transparency and risk disclosure are very important in maintaining user interests. Service providers must be fair, maintain data confidentiality, and ensure user information security.

Q: What are the preventive and repressive measures for debtors in smart credit applications?

A: The preventive measures for debtors in smart credit applications include:

Ensuring that users are aware of their rights and obligations
Providing clear information about the loan terms, interest rates, and repayment schedules
Maintaining data confidentiality and user information security

The repressive measures for debtors in smart credit applications include:

Providing compensation or improvement to users who are proven to be disadvantaged
Holding the organizer accountable for any harm or damage caused to users
Taking steps to prevent similar incidents from occurring in the future

Q: What are the recommendations for regulators, fintech P2PL operators, and users?

A: The recommendations for regulators, fintech P2PL operators, and users are:

Regulators must establish clear guidelines and regulations to ensure that fintech P2PL operators provide transparent and fair services.
Fintech P2PL operators must be more transparent in their operations, providing clear information about the loan terms, interest rates, and repayment schedules.
Users must be aware of their rights and obligations in the loan agreement, and must not be exploited.

By implementing these recommendations, the fintech industry can create a safe and transparent financial ecosystem, protecting the rights of users and promoting fair and responsible lending practices.