The Jakarta Post
The Association of Indonesian Financial Technology (Aftech) has launched a code of conduct for responsible lending signed by 43 players in peer-to-peer lending.
“It is the result of fintech’s inclusive financial working group, which consists of agreements among firms that provide technology-based online lending services,” said Aftech deputy chairman Adrian Gunadi at a press conference in Jakarta on Thursday as quoted by kompas.com.
He added that a code of conduct would protect customers from any possible cheating and other unethical actions by fintech players.
Adrian expressed hope that all fintech players, particularly members of the association, would abide by the code of conduct.
Transparency is at the core of the code of conduct, he said, adding that fintech players were required to mention all costs for customers, including interest rates and fines for late payment.
Fintech players are required to mention addresses, emails and telephone numbers so that customers are able to lodge complaints, he added.
The code of conduct also aimed at preventing excessive disbursements of loans to customers that could trap them in bad debt, he said.
“Fintech players are prohibited from manipulating customer data with the objective of disbursing more loans,” he said, adding that the practice of intimidation was strongly prohibited and therefore companies were prohibited from using third parties to collect debt. (bbn)