The practice of pawning mobile phones through phone counters has become a
popular choice for the community to obtain funds due to its fast and easy process.
However, this practice is often carried out without clear legal basis and official
permits. This study aims to examine the legal protection for debtors and the
legality of the execution of pawned objects by phone counters due to debtor
default. The research method used is empirical legal research, with data collected
through direct observation at several phone counters in Solo City and supported
by literature study on relevant laws and regulations. The results show that phone
counters in Solo City do not have permits from the Financial Services Authority
(OJK) to operate pawning businesses. Moreover, in their execution practices,
these counters do not return the remaining proceeds from the sale of pawned
phones to the debtors, which contradicts the principles of legal protection. In
conclusion, the execution practices by phone counters are legally invalid and
detrimental to debtors.