The Position of Debt Collectors in Handling Bad Loans in Financing Institutions in the Perspective of Treaty Law

The purpose of this study is to analyze: 1) How is customer protection against the presence of debt collectors in handling bad loans? 2) What is the position of debt collectors in the engagement between customers and financing institutions? 3) What is the responsibility of the financing institution for the involvement of debt collectors in handling bad loans?. This research is a type of normative juridical research with a statutory approach, concept approach, and case studies. The results showed that: 1) Referring to PMK regulation No. 130/PMK.010/2012 where the lessee must know that in the event that the execution of fiduciary guarantees must be notarized by a notary and registered at the fiduciary registration office, if not, the fiduciary has no legal force and has no executory rights, it is considered that forced withdrawal violates Article 368,369 paragraph 1, 365KUHP, if this still happens, lessee can report to OJK with evidence included, besides that it can also go through BPSK, report to the Police, file a lawsuit to the PN for forced withdrawal. 2) Debt Collectors work for banks that strongly use the precautionary principle. The prudent principle is closely related to the maintenance of bank health and legal protection for customers of the bank, the form of implementation is the establishment of Risk Management PBI by Bank Indonesia. The definition of risk management is defined as a systematic logical method through the process of identifying, quantifying and reporting risks that take place in every activity in banking. The cooperative relationship between the Debt Collector and the bank is stated through the provisions in article 1320 of the Indonesian Civil Code which mandates the terms of the validity of the agreement.3) There are many cases of Debt Collectors who violate the rules or do not obey the required conditions as they should, this is due to the absence of regulations or legal umbrellas that specifically discuss the Debt Collector profession, only discussing collection ethics that can be done, This is regulated in Bank Indonesia Regulation Number 11 of 2009. However, there are no limitations, actions, or legal consequences that can be done by the Debt Collector. All of these things are only limited to the power of attorney agreement made between the finance company and the Debt Collector