Online Lending Contracts as a Variant of Undue Influence: A Critical Examination of the Principle of Freedom of Contract

Abstrak

The rapid growth of digital financial technology has expanded online lending as an accessible financing source. However, it is often linked to high interest rates, aggressive debt collection, and misuse of personal data, placing borrowers in vulnerable positions and raising significant legal concerns regarding fairness and imbalance in contractual relationships. The purpose of this study is to analyze online lending agreements as a new variant of undue influence and to reassess the application of the principle of freedom of contract in the context of digital lending practices. This research employs a normative legal research method with conceptual and statutory approaches, drawing upon statutory regulations, contract law doctrines, academic literature, and relevant judicial decisions related to online lending practices. The findings demonstrate that undue influence does not arise solely from traditional interpersonal relations but also manifests structurally within online lending through digital information asymmetry and unequal bargaining power. This study shows that the classical conception of freedom of contract, which emphasizes formal consent, is insufficient to address such digital inequality. Accordingly, the research offers a reinterpretation of freedom of contract that prioritizes substantive justice through the principles of good faith, morality, and public order in digital contracts.