The Use of Debt Collector Services in the Forced Withdrawal of Fiduciary Guarantees at PT. Smart Multifinance (Study of Decision Number 5/Pdt.G.S/2021/PN Bit)

Bad credit is a common problem in lending, and finance companies often use debt collectors to withdraw collateral if debtors fail to pay. This withdrawal must comply with applicable regulations. PT. Smart Multifinance used debt collectors in the dispute case with consumer Mulyanti Badu in Court Decision Number 5/Pdt.g.s/2021/PN Bit,. Forced withdrawals carried out by debt collectors without a court decision or fiduciary certificate are considered unlawful. This research aims to analyze the legality of using debt collector services in withdrawing fiduciary guarantees and legal protection for consumers in these disputes. The research uses normative juridical methods with a statutory and conceptual approach, using primary and secondary legal materials. The research conclusion shows that the use of debt collector services is legal if it complies with Indonesian law and correct procedures. Legal protection for consumers includes internal protection (in agreements) and external protection (legislative).