The data collected was analyzed to identify the extent of legal protection available to customers in the pawn business

Oct 13, 2025 by wbrum.org 59 views

Legal Protection for Customers in Pawn Transactions by Pedaifaian Business that does not have a permit (Case Study in Medan Baru District)

Introduction

The economy of the community is currently growing dynamically, and the need for cash to meet various aspects of daily life has increased. However, many individuals have difficulty in getting funds directly. To overcome this problem, the community has an option to guarantee their valuables to storage or banking institutions. This process allows customers to receive cash without having to lose their valuables, which can later be redeemed after they pay off the loan. This activity is known as a pawn business. Pawn businesses have become a popular option for individuals in need of cash, but the lack of legal protection for customers is a significant concern.

Background of the Study

In this context, normative legal research becomes a method used to analyze legal protection for customers who transact with the business of pawnshop in Medan Baru District. This study focuses on documents and legal regulations, especially those relating to the Financial Services Authority (OJK), as well as existing legal norms. Through this approach, this research seeks to identify the extent to which legal protection is available to customers in the sector of the pawnwa, especially in the case of the pawnshop business that operates without permission. The Financial Services Authority (OJK) plays a crucial role in regulating the pawn business, and its regulations are essential in providing legal protection to customers.

Methodology

This study uses a qualitative approach, analyzing documents and legal regulations related to the pawn business in Medan Baru District. The data collection process involved reviewing relevant documents, including the Financial Services Authority Regulation No. 31/POJK.05/2016, and conducting interviews with customers who have transacted with unlicensed pawnshops. The data collected was analyzed to identify the extent of legal protection available to customers in the pawn business.

Results

The results showed that legal protection for customers involved in the practice of private sector in Medan Baru District was very minimal. Based on the Financial Services Authority Regulation No. 31/POJK.05/2016, the PERGADAIAN business that is not registered or does not have a permit cannot provide legal protection to customers. This resulted in customers often feel disadvantaged and uncomfortable when mortgaging their goods, because they did not get guarantees or certainty about the transactions made. The lack of legal protection for customers is a significant concern, as it can lead to various risks, including losing mortgaged goods, fraud, and uncertainty in the redemption process.

Discussion

In practice, the irregularity of unlicensed pawnshops can lead to various risks for customers, such as losing mortgaged goods, fraud, and uncertainty in the redemption process. Therefore, it is very important for customers to ensure that they make transactions with a legal and registered business. Thus, customers can obtain the necessary legal protection in accordance with applicable regulations. The community is also expected to be more careful in choosing a pawnshop and understanding their rights so as not to become victims of harmful practices.

Conclusion

In conclusion, legal protection for customers in a pawn transaction by a pawnshop business that does not have a permit in Medan Baru District is very weak. Therefore, it is important for the authorities to further enhance the supervision of the practice of pawnshop so that customers can feel safe and protected in every transaction carried out. The community is also expected to be more aware of the importance of choosing an official and licensed pawnshop institution to avoid being trapped in illegal pawnshop practices.

Recommendations

Based on the findings of this study, the following recommendations are made:

The authorities should further enhance the supervision of the practice of pawnshop to ensure that customers can feel safe and protected in every transaction carried out.
The community is expected to be more careful in choosing a pawnshop and understanding their rights so as not to become victims of harmful practices.
Education about the importance of choosing an official and licensed pawnshop institution can help the community make better decisions, while reducing the possibility of being trapped in illegal pawnshop practices.
The Financial Services Authority (OJK) should review and update its regulations to provide better legal protection for customers in the pawn business.

Limitations of the Study

This study has several limitations, including:

The study only focused on the pawn business in Medan Baru District, and the findings may not be generalizable to other areas.
The study only analyzed documents and legal regulations related to the pawn business, and did not conduct a comprehensive analysis of the industry.
The study only collected data from customers who have transacted with unlicensed pawnshops, and did not collect data from customers who have transacted with licensed pawnshops.

Future Research Directions

Future research should focus on the following areas:

Conducting a comprehensive analysis of the pawn industry, including the number of licensed and unlicensed pawnshops, and the types of goods being pawned.
Analyzing the impact of the Financial Services Authority Regulation No. 31/POJK.05/2016 on the pawn business, including the extent to which it has improved legal protection for customers.
Conducting a survey of customers who have transacted with licensed and unlicensed pawnshops to gather more information about their experiences and perceptions of the pawn business.

References

Financial Services Authority Regulation No. 31/POJK.05/2016.
Interviews with customers who have transacted with unlicensed pawnshops.
Review of relevant documents and legal regulations related to the pawn business.
Frequently Asked Questions (FAQs) about Legal Protection for Customers in Pawn Transactions by Pedaifaian Business that does not have a permit (Case Study in Medan Baru District)

Q: What is a pawn business?

A: A pawn business is a type of financial service where customers can pawn their valuables, such as jewelry, electronics, or other items, in exchange for cash. The customer can then redeem their item after paying off the loan.

Q: What is the Financial Services Authority (OJK) Regulation No. 31/POJK.05/2016?

A: The Financial Services Authority Regulation No. 31/POJK.05/2016 is a regulation that governs the pawn business in Indonesia. It requires pawnshops to be registered and licensed by the OJK in order to operate.

Q: What are the risks associated with transacting with an unlicensed pawnshop?

A: The risks associated with transacting with an unlicensed pawnshop include losing mortgaged goods, fraud, and uncertainty in the redemption process. Unlicensed pawnshops may not have the necessary capital or expertise to operate a legitimate business, and may engage in illegal activities such as money laundering or theft.

Q: How can customers protect themselves from these risks?

A: Customers can protect themselves from these risks by ensuring that they transact with a licensed and registered pawnshop. They should also carefully review the terms and conditions of the loan, and ensure that they understand the interest rates and fees associated with the loan.

Q: What are the consequences of transacting with an unlicensed pawnshop?

A: The consequences of transacting with an unlicensed pawnshop can be severe. Customers may lose their mortgaged goods, and may also be subject to fines or penalties for engaging in a transaction with an unlicensed business.

Q: How can customers report an unlicensed pawnshop?

A: Customers can report an unlicensed pawnshop to the Financial Services Authority (OJK) or to the local authorities. They can also report any suspicious activity to the police or to the OJK.

Q: What is the role of the Financial Services Authority (OJK) in regulating the pawn business?

A: The Financial Services Authority (OJK) plays a crucial role in regulating the pawn business in Indonesia. It is responsible for licensing and registering pawnshops, and for ensuring that they comply with the relevant regulations and laws.

Q: How can customers ensure that they are transacting with a licensed and registered pawnshop?

A: Customers can ensure that they are transacting with a licensed and registered pawnshop by checking the pawnshop's license and registration with the OJK. They can also check the pawnshop's reputation and reviews online, and ensure that they are dealing with a reputable and trustworthy business.

Q: What are the benefits of transacting with a licensed and registered pawnshop?

A: The benefits of transacting with a licensed and registered pawnshop include greater security and protection for customers, as well as access to a wider range of financial services and products. Licensed and registered pawnshops are also more likely to be transparent and honest in their dealings with customers.

Q: How can customers get more information about the pawn business and the regulations that govern it?

A: Customers can get more information about the pawn business and the regulations that govern it by visiting the website of the Financial Services Authority (OJK) or by contacting the OJK directly. They can also consult with a financial advisor or a lawyer to get more information and advice on the pawn business.