Legal Protection for Customers in Information Technology-Based Financing with Sharia Principles (Study of PT Ammana Fintek Syariah)

DOI

10.2991/aebmr.k.200321.010How to use a DOI?

Keywords

law, information, consumers, financing, sharia

Abstract

This research discusses the information technology-based financing implemented by sharia financing company (PT Ammana Fintek Syariah). Information technology-based financing services on the one hand provide benefits as an alternative financing for consumers and MSME entrepreneurs, but on the other hand, they contain high risks considering that financing providers and financing recipients do not know each other and have never met. The study aims to examine legal protection principles and risk mitigation for consumers in peer-to-peer lending based on Sharia Law and Indonesian legislation. This research will analyze those problems by applying normative-juridical and qualitative research methods. This study found that the standard contract made unilaterally by the financial technology company does not protect consumer rights. The Indonesian Financial Services Authority Regulation No. 77/POJK.01/2016 regarding Information Technology-Based Lending Service is not sufficient as a legal basis of customer protection. The regulation contains many weaknesses, such as it does not regulate on sharia peer-to-peer lending. It creates a legal vacuum and legal uncertainty to Muslim consumers. Therefore, POJK No. 77/POJK.01/2016 has to be amended to accommodate the interest of Muslim consumers and this sharia financial technology company.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Titin Fatimah
AU  - Gemala Dewi
PY  - 2020
DA  - 2020/03/27
TI  - Legal Protection for Customers in Information Technology-Based Financing with Sharia Principles (Study of PT Ammana Fintek Syariah)
BT  - Proceedings of the 3rd International Conference on Law and Governance (ICLAVE 2019)
PB  - Atlantis Press
SP  - 71
EP  - 77
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200321.010
DO  - 10.2991/aebmr.k.200321.010
ID  - Fatimah2020
ER  -