Unethical practices peer-to-peer lending in Indonesia

Abstract

Purpose

This paper aims to highlight the existence of illegal peer-to-peer (P2P) lending in Indonesia, unethical practices of P2P lending operators to borrowers, regulatory weaknesses and offer recommendations to reduce unethical practices.

Design/methodology/approach

This paper is a general discussion through desk research using secondary data from journal papers, research reports, books and papers online.

Findings

There are regulatory weaknesses in regulating illegal P2P lending. There are no strict legal sanctions for P2P lending operators who act unethically to borrowers.

Originality/value

This paper discusses the unethical actions of P2P lending operators and the inability of regulations to take legal action against illegal P2P operators.

Citation

Hidajat, T. (2020), "Unethical practices peer-to-peer lending in Indonesia", Journal of Financial Crime, Vol. 27 No. 1, pp. 274-282. https://doi.org/10.1108/JFC-02-2019-0028