Protection of Customer Rights Regarding Erroneous Fund Transfers from a Legal Perspective

Abstract

This study aims to analyze the legal position and protection of customers in cases of erroneous fund transfers, the responsibility of banks in safeguarding customer rights under statutory regulations, and the legal remedies available for resolving disputes through internal mechanisms, alternative dispute resolution, and court litigation. The method used in this study is a normative empirical juridical approach with a descriptive analytical specification, focusing on legal principles and statutory norms governing fund transfer practices. Secondary data from literature research serve as the primary source, complemented by field observations to enrich empirical insights. The novelty of this study lies in its comprehensive examination of the gap between normative legal protection and factual implementation, highlighting the inefficiency of current mechanisms that rely heavily on judicial orders for fund recovery. The results of this study show that although statutory regulations provide normative protection, their implementation remains largely repressive, as banks lack authority to withdraw funds from recipients without consent or court orders. Bank responsibility is limited to facilitative and procedural roles, leaving customers dependent on layered remedies: internal bank mechanisms, alternative dispute resolution through the Financial Services Alternative Dispute Resolution Body (LAPS), and ultimately court litigation. The conclusions of this study emphasize that customer protection in erroneous fund transfer cases still faces significant challenges, requiring regulatory strengthening and more efficient dispute resolution mechanisms that are faster, less costly, and more accessible to customers.