Borrower Protection Laws
KoinWorks shall not alter, or propose to alter the terms or conditions of a credit agreement with the borrower to the detriment of the borrower. Also KoinWorks shall not disclose information obtained from a borrower unless the information is required under any other law or by a court.
Usury laws specifically target the practice of charging excessively high rates on loans by setting caps on the maximum amount of interest that can be levied. As we all know that usury has permeated all layers of most societies in the world. By agreeing to use our service means that lenders are fully aware that KoinWorks doesn’t have such regulation for now.
There is no industry specific regulation for peer to peer finance in Indonesia
The concept of peer to peer finance has been proven and tested for about ten years and have recently experienced explosive growth in other countries, but it is relatively new in Indonesia. Because of this, the OJK is still reviewing the concept and working to draft regulations catering to the industry.
For our current operations we have designed our products and processes to comply with existing laws in Indonesia. In the future the regulators may introduce laws and oversight over the peer to peer finance industry, and we support this, but users of our platform should be aware that such laws may introduce hefty requirements, costs, or regulatory burdens which may hamper, or severely impact our ability to operate.
Our collection, processing, use and disclosure of personal data could be subject to governmental regulations
Our platform work through novel technologies and rely heavily on the use of data to do our KYC process, assess our borrowers, and provide services to our users. We never use, or seek to use your data or to profit from your data on purposes other than to service our users. The government may introduce regulations in the future which regulate such processes on personal data, and it may negatively impact our operations.
On another hand, the laws of Indonesia require that if there are causes for the government or law enforcement agency to seek the cooperation of our platform, such as a criminal investigation or legal proceedings, we will have to cooperate with them. The cooperation they request may require us to hand over some personal data on the persons they are investigating upon.
We serve primarily the market in Indonesia
Our platform currently only originates loans from borrowers in Indonesia, and cater our services mainly for lenders based in Indonesia. If you are from another country choose to lend in our platform, then you should be aware that our product is, in all likelihood, not yet compliant to the laws of your country, and that you use our platform at your own risk. It may give rise to unforeseen tax implications, and if there are legal implications you will have limited recourse. In such events we are not liable nor are we obligated to provide any assistance for any potential loss or difficulty arising from them.