Legal Reconstruction of Loan; Consumer Protection Perspective

This study aims to analyze the legal reconstruction of bad credit settlements from the perspective of consumer protection. The problem described above is that the debtor is unable to fulfill his obligation to repay the debt as a customer in the credit agreement, which results in bad credit problems. The research method used in this research is empirical juridical law research. The results of the research on the implementation of credit granted by the debtor are not all the fault of the debtor alone, but there are also external causes that cause bad credit so that the debtor is unable to fulfill his obligations to repay his debt to the creditor, causing the occurrence of what is called bad credit. Considering that collateral is an element of guarantee for granting credit, if based on other elements, it can be obtained confidence in the ability of the debtor to develop his debt, the collateral can only be in the form of goods, projects or collection rights financed with the credit in question. Credit provided by banks to debtor customers is based on trust and must be done carefully because loans always contain risks; there are also problems of default (a state of unpaid debt and a state of stopping paying), not carrying out obligations, violating time limits or not carry out the provisions contained in the credit agreement if this happens the bank will experience a loss.