LEGAL PROTECTION FOR CREDITORS WHO HAVE DEFAULTED IN UNSECURED CREDIT AGREEMENTS ACCORDING TO LAW NUMBER 8 OF 1999 CONCERNING CONSUMER PROTECTION

Abstrak

In the era of globalization and the rapid development of information technology, access to financial services is getting easier. Unsecured Loans (KTA) are one of the solutions for people who need quick funds for various purposes, such as education, health, or business capital. However, this convenience is also accompanied by risks that cannot be ignored, especially related to default. Defaults can occur due to a variety of factors, such as unstable economic conditions, poor financial management, or even fraud. This study aims to find out the form of legal protection for creditors who have defaulted in the KTA based on Law Number 8 of 1999 concerning Consumer Protection (UUPK), the factors causing defaults, and the effectiveness of these regulations in providing protection for creditors. The research method used is a normative juridical method with a legislative approach and a conceptual approach. The data used included primary legal materials in the form of laws and regulations and secondary legal materials in the form of related literature. The results of the study show that legal protection for creditors in the KTA can be in the form of preventive protection through clear and transparent agreement arrangements, as well as repressive protection through dispute resolution mechanisms both in litigation and non-litigation. Factors that cause default include the debtor's economic condition, lack of good faith, and weak creditworthiness analysis from creditors. Although the UUPK focuses more on the protection of consumers (debtors), this law also provides a legal framework to achieve a balance of rights and obligations between creditors and debtors in order to achieve justice for both parties.