TEMPO.CO, Jakarta - The Financial Services Authority (OJK) said that women experience more problems with financial technology (fintech) lenders that are not registered. The OJK's Investment Alert Task Force chief Tongam L Tobing said this was based on the number of reports made by more women than men.
He said that three out of four cases of illegal fintech were reported by women. "There are more complaints from women who experienced intimidation and harassment, so we indicate illegal lenders affect women more due to the many complaints," he said in Jakarta, Monday, September 23.
Based on the number of complaints, Tongam said, many problems arise because online loans come with high interest and administrative, coupled with borrowers' 'tendency not to read the agreements' terms and conditions.
"It is very dangerous for the community, because first of all the interest is high, the fee is very high, the penalties are very high and they also conduct unethical collection when the borrower cannot pay—using terror, intimidation and harassment," Tongam said.
OJK appealed to the public not to access illegal online loans and avoid unregistered lenders.
"Borrow from legal lenders that are registered with the OJK, the list is available at OJK's website or you can call 157," Tongam said.
He stressed that prospective borrowers must understand the risks, liabilities, and interest when applying for loans, so they do not regret it later.
He also urged the public to only use fintech lending services for productive purposes according to their needs and ability to pay off the debt.
"Don't borrow new loans to cover old loans; digging up one hole to cover another," he said.