167 Financial Institutions Pay Consumer Compensation IDR 112 Billion
Regarding tens of thousands of consumer complaints about legal financial service institutions, the Financial Services Authority (OJK) has admitted to enforcing the law against financial service providers (PUJK) who were reported, based on the degree of their wrongdoing.
In addition to consumer complaints, the legal enforcement was also carried out based on the results of OJK's direct and indirect supervision of financial institutions.
In a written statement last week, OJK stated that during January 1 to August 23, 2024, OJK had issued 195 Written Warning Letters to 144 PUJK, 3 Instruction Letters to 3 PUJK, and 47 Fine Sanction Letters to 47 PUJK.
"Furthermore, in 2024 (as of August 23, 2024) there were 167 PUJK that provided compensation to consumers for 968 complaints, with a total loss of Rp112,060,464,920," the OJK statement wrote.
In supervising PUJK's market conduct, until August 2024 OJK had imposed administrative sanctions for late reporting on 71 PUJK.
Then, administrative sanctions in the form of fines were imposed on 55 PUJK, and administrative sanctions in the form of written warnings were imposed on 16 PUJK. "The number of sanctions has taken into account the objections submitted by the PUJK," OJK explained.
Additionally, based on OJK's supervision results, until August 2024 OJK had imposed administrative sanctions in the form of fines totaling Rp390,000,000 on 4 PUJK.
The fines were imposed for violations of consumer protection provisions, particularly regarding the provision of information in advertisements and marketing procedures for products/services.
OJK has also imposed administrative sanctions in the form of written warnings on 8 PUJK in the banking, financing, and pawnshop sectors for violations of consumer protection provisions in the provision of information in advertisements and collection procedures.
"To prevent the recurrence of similar violations, OJK has ordered PUJK to improve their internal regulations and consistently comply with consumer and public protection provisions," OJK concluded.
