Legal Safeguards for Consumer Collateral Protection at Pawnshops in Indonesia

Abstract

PT. Pegadaian is a public service provider that, in general, engages in pawn transactions to secure outstanding debts. In the pawn process, consumers have a right acquired by the party holding a claim on a movable property, which is provided to PT by the debtor. As a civil right, customers need to assert their rights independently through various legal channels and civil law institutions established by the state. This research is conducted to understand the legal protection of consumer collateral at PT. Pegadaian. The research method applied is a type of normative legal research that relatively projects the image of law as a prescriptive field that merely assesses law through its normative perspectives, which, of course, have a prescriptive nature. The approach used is the statute approach. The research results show that in cases of loss or damage to pawn collateral, the Financial Services Authority (OJK) issued POJK Number 31/POJK.05/2016 concerning Pawn Business in 2016. According to this regulation, all items that can be pledged are insurable under pawn law to ensure the availability of the collateral. According to Article 25 of Financial Services Regulation No. 31/POJK.05/2016, PT. Pegadaian will compensate for the damage or loss of consumer collateral caused by the negligence of PT. Pegadaian, whether in the form of goods or money.