This is it! How to Deal With Debt Collectors Properly and Correctly

Admin BFI
29 May 2022
This is it! How to Deal With Debt Collectors Properly and Correctly

To many people, the word “debt collector” may seem scary and have a variety of other connotations. In fact, the task of a debt collector is only to collect debts from debtors who have been in arrears for too long. The cause of many unwanted events experienced by debtors and debt collectors is a misunderstanding between the two parties and inappropriate problem-solving methods. If both parties are cooperative, it is certain that there will be no debt collection incidents involving verbal or physical violence. Because of course, this is very detrimental to many parties and can disrupt the harmony in social life in society.

Now, to further explore what a debt collector is, and how to deal with debt collectors properly, the article below is perfect for you to be a guide! The BFI Finance team provides a comprehensive understanding of their duties, legal basis, how to deal with debt collectors, and how to deal with problematic debt collectors. Listen thoroughly yes!


What is a Debt Collector?

Debt collectors are third parties appointed by Financial Institutions or creditors with the aim of collecting debts from debtors that are in arrears with certain criteria. Not all types of debt will be billed by debt collectors, but usually, the type of debt that is collected is debt that has been too long from maturity and has not been paid by the debtor. Each financial institution has different regulations regarding when debt collection is managed by debt collectors.

Debt collection should actually be done in accordance with applicable corporate ethics and standards. The owner of the debt must be able and have the awareness to pay the debt on time according to the agreement. Meanwhile, creditors and debt collectors actually only carry out their duties to be able to collect debts so that the company's performance is maintained, especially in the performance of Non-Performing Loans (NPL). However, sometimes there are billing incidents that do not comply with proper procedures, such as involving physical or verbal violence. This is what makes the image of debt collectors bad.

A good debt collector is one who collects debts in accordance with the company's code of ethics and regulations in Indonesia. There are several codes of ethics and requirements that debt collectors must comply with. In addition, what is no less important and main is cooperation from the debtor's side to be cooperative in paying their debts on time.

Legal Basis of Debt Collector

Until now, there is no legislation in Indonesia that specifically regulates the collection procedures carried out by debt collectors. However, we can refer to Bank Indonesia Regulations (PBI) and Bank Indonesia Circulars which explain the ethics and obligations that must be complied with by Financial Institutions or debt collector services in collecting debtors who are in default. This is regulated in Bank Indonesia Circular Letter Number 14/17/DASP dated 7 June 2012 concerning the First Amendment and Bank Indonesia Circular Letter Number 16/25/DKSP 2014 concerning the Second Amendment to Bank Indonesia Circular Letter Number 11/10/DASP dated 13 April 2009 regarding the Implementation of Card-Based Payment Instrument Activities.

A debt collector may not be forced to confiscate the property of a debtor who is in default. Confiscation of the debtor's goods in default may only be carried out upon a court decision. This is confirmed in Article 362 of the Criminal Code (KUHP) which reads: "Anyone who takes something, wholly or partly belonging to another person, with the intention of being owned against the law, is threatened with theft, with a maximum imprisonment of five years. five years or a maximum fine of nine hundred rupiahs.”

If in carrying out the collection, the debt collector continues to use violence or threats of violence, then he can be charged with Article 365 paragraph (1) of the Criminal Code which reads: "Threatened with imprisonment for a maximum of nine years theft which is preceded, accompanied or followed by violence or threats of violence, against persons with the intent to prepare or facilitate theft, or in the case of being caught red-handed, to enable the escape of oneself or another participant, or to retain possession of the stolen property.”

This legal basis applies not only to financial institutions such as banks but also to financing and leasing companies.

How to Deal with Debt Collectors

Don't panic if you have a debt collector. Always have the principle that debt collectors come to you to solve problems properly and according to procedures. Here are 4 tips for you in dealing with debt collectors:

1. Receive His Arrival Well

The first step in dealing with debt collectors is to accept their arrival properly. No need to dodge, because if you dodge it will make the condition worse. The purpose and goal of debt collectors are to collect debts properly, so treat them with heart.

2. Ask for Identity, Letter of Assignment, and Debt Collector Certification

If you have received the arrival well, then ask for the identity, letter of assignment, and official certification of the debt collector. Debt collectors who are officially on duty have an official letter of assignment from the Financial Institution or Agency where they work. In addition, a debt collector is also required to have a Financing Collection Professional Certification (SP3). Also, ask them about the ownership of the certification. If they are not able to show the official letter of assignment and certification, then just ignore it.

3. Explain Well Your Financial Condition, Including The Obstacles You Face

Explain honestly, politely, and calmly about your current financial condition, including the obstacles faced that you experienced late payments. Be cooperative with debt collectors if there are questions related to difficulty in paying installments.

4. Make Delinquent Payments

If you have found a bright spot and you have the ability to pay installments, make payments in arrears in installments and fines if there are any as soon as possible. Follow the installment payments according to the established procedure. If you are still unable to pay the installments, continue to follow the procedures that must be followed. Strive to resolve problems amicably and without violence, because both parties need the right solution.

Ethics in Billing by Debt Collector

Some of the points below can be used as a reference to see how the task of debt collectors is to collect debtors' debts correctly and according to procedures.

  • Has a Professional Certification of Financing Collection (SP3) which is an official requirement in billing activities and is regulated in POJK Number 35/POJK.05/2018.
  • Comply with the regulations of the Company where the Debt Collector works.
  • In carrying out their duties, debt collectors always dress neatly and wear shoes. Do not use jeans, T-shirts or jackets.
  • Do not say harsh or obscene words to the debtor and the debtor's family.
  • Avoiding physical contact with the debtor and the debtor's family.
  • Do not accept any form of money or gifts from debtors for their collection activities.
  • Do not threaten the debtor and the debtor's family.
  • Always carry a photocopy of the Power of Attorney legalized by the external agency office, Official Assignment Letter and Collector Agency professional Identity which is accompanied by a professional collector agency photo.
  • Do not use fake Official Receipts/Receipts.
  • Prioritizing persuasive, professional attitude, and negotiating well without intimidation towards debtors.
  • Do not provide debtor data either to other professional agencies or to other external agency companies.
  • Not providing wrong information to debtors regarding total arrears and fines for late payment of debtors.

Complaints Against Debt Collectors

If you continue to meet debt collectors who in their duties do not comply with the procedures set by the company where they work or regulations in Indonesia, you can report it through the relevant institution that can help resolve the problem. There are five institutions that can be a place for complaints if they face a problematic Debt Collector, namely:

1. Bank Indonesia

Complaints about the actions of a troubled debt collector can first be reported through Bank Indonesia:

Contact Center BICARA

  1. Typical Building, 1st Floor DUPK BI
  2. Building B Floor 1, BI Office Complex, Jl. M.H. Thamrin No. 2, Gambir, Central Jakarta.

2. Financial Services Authority (OJK)

Apart from going through Bank Indonesia, you can also report the actions of a problematic debt collector to the Financial Services Authority.

  • Letter addressed to Members of the OJK Board of Commissioners for Consumer Education and Protection
  • Delivery Address: Radius Prawiro Tower, 2nd Floor BI Office Complex, Jl MH. Thamrin No. 2, Central Jakarta
  • Telephone: 157 (Can be contacted on weekdays Monday-Friday at 08.00 – 17.00 WIB)
  • Email:
  • Online Complaint Form: Form Pengaduan Konsumen OJK

3. Indonesian Consumers Foundation (YLKI)

The third institution that can be a place for complaints against naughty debt collectors is the Indonesian Consumers Foundation (YLKI).

  • Call Center: 021-7981858 or 7971378
  • Address: Jalan Pancoran Barat VII/1, Durentiga, South Jakarta 12760
  • Service operating hours start from Monday – Friday, 09.00 – 15.00 WIB.
  • Online Complaints: Online Complaints Form

4. Indonesian Legal Aid Foundation (YLBHI)

You can also complain to the Indonesian Legal Aid Foundation (YLBHI) which is spread throughout Indonesia about the actions of problematic debt collectors. The following is information on the telephone number that can be contacted and the address of the YLKI Head Office:

  • Phone: 021 – 3929840
  • Fax: 021 – 31930140
  • Email:
  • Address: Jl. Diponegoro No. 74, Menteng, Central Jakarta 10320.

5. Police Station

The last way to complain about a naughty debt collector is to report it to the nearest Police Station. Follow the reporting procedures at the local police station where you are located.


That is a comprehensive explanation of what a debt collector is, including how it works, the ethics that must be possessed, and how to report if there is a problem debt collector. If you want to avoid being chased by debt collectors, then always pay your installments on time, BFI friends!

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