Creditor’s Legal Remedy Against The Ruling Of Cancellation Of Credit Agreements

Abstract

The present study departs from the Decision of the Supreme Court No. 3784 K/PDT/2016 stating that the credit agreement is canceled considering that the creditor did not apply the prudential principle, making it being declared as committed an act against the law. Therefore, the purpose of the present study is to analyze the appropriateness of the ruling of the judges who decided the cancellation of the credit agreement and the creditors’ legal remedies against the ruling. The present study is a normative legal one using the case-study and statutory approaches. The legal materials used consist of primary and secondary legal materials. The legal materials are analyzed using the prescriptive analysis. Results show that the dictum of the Supreme Court’s ruling No. 3784 K/PDT/2016 stating the cancellation of the credit agreement are not appropriate since the lender has implemented the prudential principle and the credit agreement was lawfully made. The creditor’s legal remedy against the cancellation of the credit agreement is to sue the debtor using the legal basis of Article 1359 paragraph (1) of the Civil Code concerning undue payments.