Factors Affecting the Unoptimized Arrangements for Legal Protection of Borrower in Information Technology Based Loan-Lending Services Transactions in Indonesia

Abstract

This study aims to take an inventory of the factors that influence the protection arrangements for borrower in information technology-based money lending and borrowing services (LPMUBTI) transactions in Indonesia that are not yet optimal. This research is a normative research that is prescriptive. The research approach used is the statutory and conceptual approach. Sources of legal materials were obtained from primary legal materials and secondary legal materials by way of literature study and analyzed using the deduction method. The results of the study show that the factors that influence the regulation of legal protection for borrower in LPMUBTI transactions in Indonesia are not optimal. This factor can be seen from several perspectives, namely from the perspective of the legal structure if it is related from this theory the phenomenon of the number of complaints regarding terror, intimidation, and so on then in this case the law enforcement officers only apply administrative and criminal sanctions to illegal LPMUBTI. The substance side has not included the accommodation of restructuring options or the like when the loan recipient cannot fulfill his achievements. In terms of legal culture, obstacles were found that the community was very minimally literate and when applying for loans they did not think about the risks.