Dynamic market conditions affect each individual's financial status. When facing financial difficulties, transferring credit (over-credit) becomes a favored option for many people to avoid the financial burden of paying installments.
Over-credit is the process of transferring ownership of an item to a third party, along with the installment payments, as the item is still under credit to the third party. Although it seems like a practical solution to avoid financial burdens, over-credit carries significant risks that must be considered.
Legal risk is the most significant danger in over-credit. Many over-credit transactions are conducted without legal documentation and without the financing company's knowledge. This can result in substantial financial losses because those engaging in over-credit are proven to violate the law.
Law on Fiducia Security
Over-credit conducted without notification to the financing company is illegal. Law of The Republic of Indonesia Number 42 of 1999 on Fiducia Security, article 23, Paragraph (2) states that "Fiducia Grantor is prohibited from transferring, pledging, or leasing Goods being the object of Fiducia Security to any other party so long as such Goods are not inventory goods, except with prior written consent from Fiducia Recipient." If proven to violate this, one can be threatened with a maximum imprisonment of 2 years and a maximum fine of Rp 50 million.
If you experience financial difficulties in paying credit or installments, feel free to discuss and inform the financing company about your difficulties. The financing company will certainly strive to provide the best solution that neither party is harmed.
Source : Kemenkumham.go.id
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