Fathan Qorib, Robert Sidauruk
The Financial Services Authority (OJK) has prohibited financial service providers from offering their products to the public by using short message service (SMS) and by phone (telemarketing).
This step has been taken by the OJK in an effort to enhance consumer protection in the financial services sector as mandated by OJK Regulation
No. 1/POJK.07/2013on Consumer Protection in the Financial Services Sector.
The prohibition on using SMS and telemarketing is stipulated under Chairman of the OJK’s Board of Commissioners Letter No. S-31/D.01/2014, dated 14 May 2014. According to the Letter, the OJK requests all financial services providers to temporarily discontinue offering financial services and products via SMS and by phone starting 6 August 2014.
“They must stop offering financial services and products through SMS and by phone without the prior consent of the consumer,” said Muliaman D. Hadad, Chairman of the OJK’s Board of Commissioners in a press release last Wednesday.
Mr. Hadad stated that current SMS and telemarketing practices have disturbed the public. Therefore, his institution orders all executives of financial services providers to review their telemarketing procedures most of which are through third parties. The OJK will issue further regulations giving guidance on appropriate marketing practices for financial service providers.
To strengthen the protection measures, the OJK will enter cooperation with the Minister of Communication and Information Technology, via the Telecommunication Regulatory Agency (BRTI). Such cooperation is seen as necessary because the details and phone numbers of most potential consumer targets are obtained from various sources including from the sale of SIM cards in the public market.
“The OJK will sign a Memorandum of Understanding with the Ministry of Communication and Information Technology in the near future,” concluded Mr. Hadad.
(For more information on the OJK Regulation
No. 1/POJK.07/2013on Consumer Protection in the Financial Services Sector see ILD
No. 321).
(hot/kc)
Fathan Qorib, Robert Sidauruk
The Financial Services Authority (OJK) has prohibited financial service providers from offering their products to the public by using short message service (SMS) and by phone (telemarketing).
This step has been taken by the OJK in an effort to enhance consumer protection in the financial services sector as mandated by OJK Regulation
No. 1/POJK.07/2013on Consumer Protection in the Financial Services Sector.
The prohibition on using SMS and telemarketing is stipulated under Chairman of the OJK’s Board of Commissioners Letter No. S-31/D.01/2014, dated 14 May 2014. According to the Letter, the OJK requests all financial services providers to temporarily discontinue offering financial services and products via SMS and by phone starting 6 August 2014.
“They must stop offering financial services and products through SMS and by phone without the prior consent of the consumer,” said Muliaman D. Hadad, Chairman of the OJK’s Board of Commissioners in a press release last Wednesday.
Mr. Hadad stated that current SMS and telemarketing practices have disturbed the public. Therefore, his institution orders all executives of financial services providers to review their telemarketing procedures most of which are through third parties. The OJK will issue further regulations giving guidance on appropriate marketing practices for financial service providers.
To strengthen the protection measures, the OJK will enter cooperation with the Minister of Communication and Information Technology, via the Telecommunication Regulatory Agency (BRTI). Such cooperation is seen as necessary because the details and phone numbers of most potential consumer targets are obtained from various sources including from the sale of SIM cards in the public market.
“The OJK will sign a Memorandum of Understanding with the Ministry of Communication and Information Technology in the near future,” concluded Mr. Hadad.
(For more information on the OJK Regulation
No. 1/POJK.07/2013on Consumer Protection in the Financial Services Sector see ILD
No. 321).
(hot/kc)