Legal Protection for Business Actors in Settlement of Default Debt Payments by Consumers in Trade

Abstract

Trade as an important part of economic activity is often characterized by legal relationships between business actors and consumers, including in terms of providing credit or delaying payments. However, in practice, it is not uncommon for business actors to experience obstacles in the form of bad debts or defaults from consumers who fail to fulfill payment obligations. This study aims to analyze the forms of legal protection available to business actors in dealing with bad debt problems by consumers, as well as dispute resolution mechanisms that can be taken, both through litigation and non-litigation channels. The method used is normative juridical with a statutory approach and case studies. The results show that legal protection for business actors has been regulated in several regulations, such as the Civil Code and the Consumer Protection Law, but its implementation still faces obstacles, especially in terms of collection effectiveness and legal certainty. Legal protection for businesses in the face of consumer bad debts is divided into internal protection through contracts and external protection through laws and regulations and dispute resolution institutions. Settlement can be done by non-litigation or litigation. It is recommended that consumers be more aware of the law, the government strengthen regulations, and business actors draw up clear contracts and implement good credit risk management.

Keywords: Legal Protection; Businesses; Bad Debt