The Resolution of Default Disputes Arising from Outstanding Motor Vehicle Installment Payments under Leasing Agreements through the Solok City Consumer Dispute Settlement Agency

Breach of contract (default) in motor vehicle leasing agreements is a recurring legal problem between consumers and financing companies. This study aims to identify the forms of default in motor vehicle leasing agreements and to describe how disputes over arrears in vehicle instalment payments are resolved through the Consumer Dispute Settlement Agency (BPSK) of Solok City. This is an empirical legal study with a descriptive qualitative approach. Primary data were obtained through an interview with the Chair of BPSK Solok City and the examination of Decision Number 05/BPSK-SLK/P.PTS/XI/2024, while secondary data were drawn from legislation, books, and journal articles. The findings show that the most common form of default is late payment of instalments (mora), mostly triggered by the consumer's economic difficulties. Dispute resolution at BPSK Solok City proceeds through the filing of a complaint, administrative examination, formation of a panel, summoning of the parties, examination of evidence, and mediation as the primary method, with the agreement recorded in a decision. In the case examined, the lessor waived late-payment penalties and reduced the principal debt by 25 percent, and the decision was implemented voluntarily. The study concludes that BPSK Solok City offers a simple, fast, and free forum that yields a high level of compliance. The findings are limited to one institution and one case; further research with broader samples is recommended.