Information technology-based lending services, commonly known as peer-to-peer (P2P) lending platforms, are growing rapidly in Indonesia.

Online lending platforms are able to reduce financial gaps that cannot be fulfilled by banks and other conventional financial institutions. However, on the other hand, many people have fallen victim to them as many have violated regulations and business ethics.

Generally, the victims faced unethical debt collection methods (intimidation, violation of privacy, terror, etc.) and the imposition of excessive interest rates and other charges. For example, more than 5,000 people have signed an online petition at change.org that contains complaints about the new lending practices. They have urged the Financial Services Authority (OJK), the Communications and Information Ministry and the President to resolve this issue.

One example of such bad practice caused someone to get fired from their job, as reported last year. As a result of the victim’s late payment on loans from two online lending platforms, her debt collectors sent text messages to all of her contacts stored on her cellphone to inform them of her debts. In fact, the debt collector created a WhatsApp group comprising her friends, family and boss only to humiliate her about her debts.

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