Legal Protection for Consumers Against Debt Collection Actions in Online Loan Services

Abstract

This study examines the effectiveness of legal protection for consumers against abusive debt collection practices in online lending services within the context of digital financial development in Indonesia. The rapid growth of fintech lending has expanded access to financing but has also generated legal issues, particularly unethical collection practices such as intimidation, threats, and misuse of personal data, which disproportionately affect young consumers. This research adopts a normative juridical approach supported by empirical observations at SMK PGRI Larangan, focusing on statutory regulations, regulatory policies, and real cases encountered by students. Data were analyzed through legal document review, observation, and discussions with stakeholders to identify gaps between normative legal protection and its practical implementation. The findings indicate that despite the existence of legal frameworks, including consumer protection and data protection laws as well as OJK regulations, enforcement remains weak due to low legal literacy, limited supervision, and ineffective complaint mechanisms. Consequently, consumers, particularly students, remain vulnerable to unlawful collection practices. The study concludes that strengthening legal protection requires an integrated approach combining regulatory reinforcement, effective law enforcement, institutional coordination, and systematic legal and financial literacy education. These measures are essential to ensure fair treatment of consumers and to promote legal certainty and justice in the digital financial ecosystem.