Dion Bisara & Shirley Wibisono – A groundswell of consumer anger is building against the rising tide of text messages offering collateral-free loans from banks.

The messages, mostly from local lenders, usually tout loans of Rp 30 million to Rp 300 million ($3,450-$34,500) and are often followed by hard-sell calls to the targets' mobile phones.

Such unsolicited calls are not illegal, but consumers have found them so intrusive that more than 10,000 have complained to a Bank Indonesia hotline. BI has discovered that private customer data are being freely exchanged by companies hired by local banks to market such loans.

"These companies trade consumer data with one another," said Dify Djohansyah, a central bank spokesman. "Unfortunately, BI does not have the authority to control these outsourcing companies. BI also has no power to prohibit banks from using the services of outsourcing firms in marketing their products."

Dify added that offering loans through SMS text messages did not breach banking laws.

According to Bank Indonesia regulations, banks are required to explain the product they are selling to prospective customers, and are prohibited from providing their personal information without their permission. The central bank, however, cannot act unless it finds evidence that banks are leaking customer information.

BI established a hotline – 0885 888509797 – for the public to register complaints. As of February, it had received more than 11,000.

Local lenders contacted by the Jakarta Globe said they could help customers irritated by such contact by removing from them from the call list. "But we can only reach as far as our partners, we cannot do more if the data has found its way to other parties," said Devi Kusumaningtyas, HSBC's spokeswoman.

This explanation, however, does little for Dewi Puspita, who works at an advertising firm. She was furious when she learned her private information was being traded for as little as Rp 1,000. "If there's a way to complain, I want to shout: "Please, get me off the list!" Dewi said.

She added that banks should be relying on their products to attract business. "Sending customers offers by text messages is not only less effective, but so backward."

Consumer watchdogs have also taken up the cause by meeting with lenders and telecommunication providers.

Sularsi, a spokeswoman for the Indonesian Consumer Protection Foundation's (YLKI) claims and law division, said that text messages that offered collateral-free loans (KTA) violated privacy laws. "These irresponsible bank agents or senders have annoyed mobile consumers," she said. "We have reported it to the Indonesian Telecommunications Regulatory Body (BRTI) and mobile operators."

The eight telecoms that attended the meeting, including Telkomsel, XL Axiata, Indosat, Axis and Three, were considering measures to filter text messages based on keywords, she said.

However, Sularsi did not think it would be an effective solution. "The senders are pretty slick, if we filter certain keywords, they could just easily change it," she said.