Analysis Case of P2P

Police Reveals the Role of 13 Suspects of Online Illegal Loaning Network That Caused Mother to Suicide 

Following psychological pressure brought on by fear from an illicit online lending network, a housewife in Wonogiri, Central Java, took her own life. Threats, harassment, and the sharing of personal information by debt collectors who persisted in collecting debts were the forms of terror. Thirteen people were implicated in the network, according to investigations by the National Police's Directorate of Cyber Crime's Criminal Investigation Unit. Each suspect was in charge of running the program and disseminating harassing material. When the victim is unable to repay the rapid loans with easy terms, the perpetrators humiliate them and share their personal information. The detrimental effects of illicit online loans, which can impair a person's mental, social, and legal well-being, are amply demonstrated by this case.

Negative Impact of Illegal P2P Lending

Financial Exploitation

Illegal lenders will impose very high interest rates and additional fees if borrowers do not pay on time. Some platforms charge daily interest rates of 2%, causing debts to quickly balloon, and many borrowers who struggle to pay will become easy targets for debt collectors.

Psychological Pressure

Debt collector tactics such as intimidation, threats, and sexual harassment cause psychological pressure on the victims.

Privacy Violation: Illegal lenders can access contacts and other personal information from borrowers without their consent.

Social Consequences

The stigma associated with debt and public harassment can lead to deteriorating personal relationships and damage a person's reputation in society.

Undermining Financial Inclusion Efforts

P2P loans have the potential to enhance financial inclusion, which means easier access to financial services for the community. However, these illegal practices actually reduce public trust in digital financial services. As a result, the financial inclusion programs offered by official financial institutions or the government have been halted.

In response to this case, Indonesian authorities have intensified their efforts to combat online loans. People involved in the illegal loan business have been arrested by the police. OJK has been actively identifying and shutting down unregistered money lending sites. More than 3,600 illegal online loan providers have been shut down by the Investment Alert Task Force from 2018 to 2021. Authorities are raising public awareness about the risks of dealing with unauthorized lenders and encouraging the public to verify the credibility of financial companies before taking out loans.

This example demonstrates the grave risks associated with illicit P2P lending, which include social stigma, privacy infringement, and psychological suffering. This instance emphasizes how urgently stronger laws, increased public awareness, and ethical lending are needed to shield society from catastrophes like this one.