Small Claim Court as a Settlement Non Performing Loan In PT. PNM Branch Malang

Abstract

Many bad loans with Letter C collateral are not burdened with mortgage rights so they cannot be auctioned off by PT. Permodalan Nasional Madani Malang Branch (PT. PNM Malang Branch). This study aims to analyze and find efforts to settle the non-performing loan with Letter C collateral through a small claim court mechanism at PT. PNM Malang Branch. The author uses the socio-legal research method with a case approach. The results of this research study indicate that initially, the PT. PNM (Persero) Malang Branch, in carrying out the settlement of bad credit, there are a soft approach and a hard approach. Settlement of bad loans is done using a soft approach, among others, by giving a warning letter and visiting the debtor's house. Because these efforts were not optimal, a credit settlement was carried out using a tough approach, namely the legal route through the small claims court. Three debtors were being sued, and the three defendants repaid their loans using direct repayment and gradual repayment. But in the three small claim court decisions, there was an error in giving legal considerations, especially the power of attorney for sale, because the power of attorney to sell is not used to guarantee debt repayment or execute collateral. A power of attorney to sell as an agreement cannot be made in the form of a power of attorney, which is absolute and must fulfill the legal requirements of an agreement based on freedom of contract.