The Indonesia Financial Services Authority has summoned the management of PT Kredivo Finance Indonesia and PT KreditFazz Digital Indonesia over social media reports alleging improper conduct by debt collection officers toward a consumer in Purworejo, Central Java. The regulator sought an explanation of the incident timeline, the firms' initial findings, the handling steps already taken and remedial measures to prevent a repeat. Based on the firms' initial explanation, the consumer used the Kredivo application, while the disputed cash loan facility was a KrediFazz product marketed through that app. Field collection activity was carried out through a debt collection service provider working with KrediFazz. The authority stressed that regulated financial services firms remain responsible for activities performed by third parties on their behalf, and that outsourcing collection does not remove their obligation to ensure compliance with legal requirements, consumer protection principles and applicable ethical standards. It instructed both firms to conduct a full, objective and documented internal investigation, report the results and follow-up progress, review governance over third-party collectors, strengthen collection policies and procedures, act against any party found to have breached rules and provide accurate information to consumers and the public. The authority said it is still examining the case and will review relevant documents and information, including the firms' internal investigation results, cooperation agreements with collection providers and collection policies and procedures. If the review finds breaches of applicable rules, it said it will take supervisory and or enforcement action within its powers.

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