Standard Contract of Authorization in Consumer Financing Agreement

Abstract

The use of a standard contract of authorization for an imposition of collateral on purchased goods in installment has been prohibited by constitution No. 8 year 1999 on Consumer Protection but, in practice there are still parties who use the standard contract on the basis of effectiveness and efficiency to the company. This study focuses on two issues namely the ratio legis of prohibition of the use of a standard contract of authorization for the imposition of a guarantee of goods purchased in installment and legal status of fiduciary deeds which created by the recipient of fiduciary guarantee based on the standard contract of authorization in consumer financing agreement. This study is a normative research that refers to the legislation and conceptual approach using legal materials. Legal material can be collected through finding and collecting a primary legal materials and secondary legal materials. The collected legal material then will be classified and displayed qualitatively. This study concludes that the first is ratio legisof prohibition of the standard contract inclusion relates to the principle of equilibrium and the principle of justice. Furthermore, the second conclusion is that the legal status of a fiduciary deed which created under the authority of the consumer financing agreement will affect the fiduciary deed being invalidated by the law.