UMN and OJK Hold a Seminar to Prevent the Harmful Impact of Illegal Online Loans

Hudiyanto Presents the Material on Preventing the Bad Impact of Illegal Online Loans (Doc. UMN)

Tangerang, March 7, 2024 – Student Affairs of Universitas Multimedia Nusantara (UMN) held a seminar discussing the dangers of Illegal Online Loans. This seminar was titled “Digital Trap: Illegal Online Loans for Generation Z.” This seminar was conducted to prevent the harmful impact of illegal online loans on students.

Taking a loan is not recommended, especially if the purpose is clear or just to fulfill a consumptive lifestyle. Nonetheless, one may be forced to lend money in some special situations. The advent of online lending services has provided a quick and easy option to fulfill such funding needs. Unfortunately, many individuals are trapped in using illegal online loan services.

According to data released by the Financial Services Authority (Otoritas Jasa Keuangan/OJK), the problem of online lending has become increasingly concerning. From January to May 29, 2023, OJK recorded 3,903 complaints from the public regarding illegal online lending practices. This astonishing number highlights the escalation of the problem, which is increasingly troubling the authorities and the general public. 

This is a serious concern, especially for students who are often easy targets for these illegal practices. With the proliferation of illegal online loans, students are vulnerable to becoming entangled in a cycle of debt that is potentially detrimental to their future.

Seeing this detrimental potential, UMN Student Affair held an educational seminar discussing the dangers of using illegal online loan services. The seminar featured Hudiyanto as the Senior Executive Analyst of OJK’s Consumer Protection Department as the speaker. 

Hudiyanto explained that online loan services are one of the innovations in financial services to provide easy access to funds for the community. However, with the development of time, illegal practices in this industry have also become more widespread. Many unscrupulous companies choose to provide online money lending services without official licenses and ignore the provisions regulated by OJK.

“OJK noted that there are more than 6900 illegal online loan services in the community, and there are only 101 that are legal and in accordance with the provisions,” said Hudiyanto. Although there are officially supervised and regulated online lending services, many individuals still fall into illegal practices. 

This phenomenon occurs due to the perception that illegal loans offer greater convenience and speed than legitimate services. For some, the limited procedures and strict requirements of legal loans are often the reason for turning to illegal channels.

Unfortunately, illegal online lending services often aim to make a profit by charging high-interest rates. This practice allows illegal lenders to increase the loan amount arbitrarily without considering the borrower’s ability to pay. As a result, many borrowers find it difficult to meet their repayment obligations and end up in a deepening cycle of debt.

Students Pack the Lecture Theater to Attend the Seminar (Doc. UMN)

As an OJK staff, Hudiyanto is regularly confronted with reports from victims of illegal online loans. Daily, he witnesses the various methods debt collectors use to force borrowers to pay their debts. The tactics used include threats and intimidation, such as repeated phone calls, sharing private content with family and coworkers, and booking fictitious orders through online motorcycle taxi applications on behalf of victims.

He also revealed that illegal online loan collectors have sneaky methods to harass victims. One tactic is to make repeated phone calls using a particular device that allows one device to enter up to 10 numbers. Thus, the system automatically redirects calls from other numbers even if the victim blocks one number. 

In addition, Hudiyanto also reminded the students who attended the seminar to avoid borrowing money. According to him, engaging in uncontrolled money lending practices can damage financial reputation and potentially hinder the students’ future career progress. 

He highlighted the selection of prospective employees in State-Owned Enterprises (SOEs) (Badan Usaha Milik Negara/BUMN) that routinely request Financial Information Service System (Sistem Layanan Informasi Keuangan/SLIK) reports from the Financial Services Authority. If applicants have a poor financial record, such as an unsatisfactory payment history or a questionable credit record, they risk not passing the SOE selection.  

“If necessary, make sure to borrow from a legal place and borrow according to your needs. If you need to buy a laptop for college for 15 million, then borrow accordingly. Then the most important thing is to be able to pay it,” Hudiyanto advised. 

He also provided information about the characteristics of legal online loan service companies, one of which is the name of the management clearly stated on the loan service provider’s website page. In addition, a legitimate loan service will have a structured and clear billing process and provide a complaint service for consumers in case of problems or dissatisfaction.

Services supervised by OJK guarantee that consumer data will be appropriately protected and that the funds borrowed will also be secured. In addition, OJK also conducts a rigorous selection of the management of the lending institution, providing additional security for borrowers. Choosing a legitimate online loan service can minimize risks and make you feel safer managing your finances.

by Ivana Auliya | UMN News Team

English translation by Levina Chrestella Theodora

Kuliah di Jakarta untuk jurusan program studi Informatika| Sistem Informasi | Teknik Komputer | Teknik Elektro | Teknik Fisika | Akuntansi | Manajemen| Komunikasi Strategis | Jurnalistik | Desain Komunikasi Visual | Film dan Animasi | Arsitektur | D3 Perhotelan , di Universitas Multimedia Nusantara. www.umn.ac.id