Complaining About Scam Lending Companies in the Philippines

A Comprehensive Legal Guide (2025 edition)

Disclaimer: This material is for informational purposes only and does not create a lawyer-client relationship or substitute for individualized legal advice.

1. What Counts as a “Scam” Lending Company?

Indicator	Typical Warning Signs	Why It Matters
Unregistered entity	No SEC Certificate of Incorporation (CI) and Certificate of Authority (CA) to operate as a lending company	Operating without either document violates Republic Act (RA) 9474
Misleading cost of credit	“0% interest”, but hefty “service fees”, hidden penalties	Breaches the Truth in Lending Act (RA 3765) & Financial Products and Services Consumer Protection Act (RA 11765)
Harassment & “debt-shaming”	Threats, contacting phonebook contacts, social-media blasts, spoof “warrant” texts	Prohibited under SEC Memorandum Circular (MC) 28-2021, the Data Privacy Act (RA 10173), and may amount to grave threats
Exorbitant or “unconscionable” rates	Effective interest > 50–60 % p.a. without full disclosure	Not “usury” per se (lifted in 1983), but courts void unconscionable stipulations; regulators can revoke licences
Ponzi-style “investment + loan” offers	Promises of 20 % weekly “rebate” if you recruit others	Often an unregistered securities scheme—violates the Securities Regulation Code (SRC)

2. Governing Laws & Key Regulations

Law / Issuance	Core Provisions Relevant to Complaints
RA 9474 (Lending Company Regulation Act 2007)	Registration, ceilings on penalties, criminal penalties (₱10 000–₱50 000 fine + 6 mos–10 yrs prison) for operating without a CA
RA 3765 (Truth in Lending Act)	Mandatory disclosure of finance charge, annual percentage rate (APR)
RA 11765 (2022 Financial Consumer Protection Act)	Empowers SEC, BSP, and Insurance Commission to adjudicate complaints, impose fines up to ₱2 million/day, issue restitution orders
SEC MC 18-2019	Requires registration of online lending platforms; disallows outsourcing of credit decision to foreign entities
SEC MC 28-2021	Enumerates Unfair Debt Collection Practices (threats, obscene language, public disclosure of debts, confiscation of ID’s, etc.)
RA 10173 (Data Privacy Act) + NPC Circular 16-03	Unauthorized harvesting or disclosure of contact lists punishable by up to ₱5 million + 3-6 yrs; NPC may issue compliance orders
RA 10175 (Cybercrime Prevention Act)	Online fraud, harassment, libel one degree higher than under the Revised Penal Code
Revised Penal Code, Art. 315 (Estafa)	“Swindling” by false pretenses or fraudulent means—up to 20 yrs depending on amount defrauded

3. Which Agency Handles What?

Scenario	Primary Venue	Secondary / Parallel Options
Lending company has no SEC CA or violates SEC circulars	SEC Enforcement & Investor Protection Department (EIPD)	File a criminal affidavit with the city/ provincial prosecutor for violation of RA 9474
Bank, credit-card issuer, or e-money lender engages in misconduct	Bangko Sentral ng Pilipinas (BSP) – Consumer Affairs Unit	Monetary Board administrative sanctions; civil action for damages
Harassment / Privacy breach (mass texts, phonebook leaks)	National Privacy Commission (NPC) – Complaints & Investigation Division	Include SEC or BSP if entity is regulated by them
Pure scam / Ponzi masquerading as lending	SEC Phaseless Task Force on Investment Scams	NBI Anti-Fraud or PNP Anti-Cybercrime for criminal prosecution
Small-value civil dispute (≤ ₱400 000)	Small Claims Court under A.M. 08-8-7-SC; barangay conciliation first	Mediation at Philippine Dispute Resolution Center

4. Step-by-Step Complaint Workflow

Secure Evidence Screenshots of app pages, payment receipts, SMS threats, call logs, social-media posts, SEC search print-outs.

Tip: Use screen-record on Android/iOS to capture scrolling T&Cs.
Send a Written Demand / Notice (optional but prudent)
- Gives the lender a last chance to rectify.
- Strengthens good-faith element if you later claim moral/exemplary damages.

File with the Proper Regulator

Regulator	How to File (2025)	Typical Outcome
SEC EIPD	• E-mail signed Complaint Form + Affidavit to epd@sec.gov.ph or personal filing at Secretariat, Mandaluyong. • Attach proof of identity and digital evidence.	Show-Cause Order → Cease & Desist, Freeze of bank/e-wallets, revocation, ₱1 M fine/violation
NPC	Submit through NPC-CIMS portal within 15 days of knowledge of breach; mediation → summary decision	Compliance Order, penalty up to ₱5 M, publication of decision
BSP	1️⃣ Complain to lender first (15 banking days). 2️⃣ Escalate to BSP via consumeraffairs@bsp.gov.ph or complaints.bsp.gov.ph	Directives to bank, fines up to ₱200 000/day, restitution
Prosecutor’s Office / DOJ	Sworn complaint-affidavit + evidence → preliminary investigation	Criminal Information filed with trial court

Attend Hearings / Mediation
- SEC may conduct financial consumer mediation under RA 11765.
- NPC uses guided mediation; non-settlement proceeds to decision.
Follow-through & Enforcement
- Monitor orders, request certified true copies; coordinate with sheriff or NBI for asset freeze, if applicable.
- For civil judgments, file Motion for Execution; garnishment of bank accounts or GCash wallet.

5. Remedies & Penalties at a Glance

Offense	Administrative Penalty	Criminal Penalty
Operating a lending company without CA (RA 9474 §12)	SEC revocation, ₱20 000–₱100 000 fine/day	₱10 000–₱50 000 + 6 mos–10 yrs prison
Unfair debt collection (SEC MC 28-21)	₱25 000–₱1 M per act; permanent CDO	Separate estafa/libel charges
Data-privacy harassment	₱50 000–₱5 M; permanent ban on processing; NPC public-shaming list	3–6 yrs imprisonment (RA 10173 §32)
Estafa / Online fraud	—	Prision correccional → reclusion temporal (2 yrs-20 yrs) + restitution
Securities fraud / Ponzi	SEC permanent cease-and-desist + ₱5 M fine	Up to 21 yrs (SRC §73)

6. Notable Jurisprudence & Agency Actions

SEC v. CashABe Lending (2021) – revocation for data-shaming & lack of CA; first online lender criminally charged under RA 9474.
NPC CID Case No. 19-001 (Fast Cash) – NPC’s first Order to Stop Processing for phonebook scraping.
People v. Dizon (G.R. 213851, 2019) – “Unconscionable” 10 % monthly interest void; court applied civil-code equity despite repeal of Usury Law.
BSP MB Resolution No. 547 (June 2023) – Fined a thrift bank ₱24 M for predatory “salary-loan” scheme targeting public-school teachers.

7. Practical Tips for Borrowers & Whistle-blowers

Verify registration via SEC’s Company Registration System (CRS) or dial SEC hotline (02)8848-0925.
Compute APR—add all service fees, divide by net proceeds; anything over ~36 % p.a. is often red-flagged by regulators.
Limit permissions—deny contact list, gallery, location; Android 13 lets you toggle each access.
Use written channels—insist on e-mail; it’s admissible under Rules on Electronic Evidence.
Act quickly—some remedies (NPC complaints) have 15-day windows.
Collective complaints—SEC and NPC act faster on mass petitions (attach separate affidavits).
Keep paying if valid loan—non-payment may weaken moral-high-ground; instead contest illegal charges in writing.

8. Template: SEC Complaint-Affidavit (simplified)

AFFIDAVIT OF COMPLAINT I, [Name], of legal age, Filipino, …, state:

Respondent QuickPeso Lending App operates without a CA per SEC verification print-out (Annex “A”).

On 15 June 2025, it debited “processing fee” of ₱800 on a ₱2 000 loan (Annex “B”). …

On 20 June 2025, it sent threats to contact list (Annex “C”). PRAYER: Issue a Cease & Desist Order, impose fines, and file criminal charges under RA 9474. Verification & Certification Against Forum Shopping … [Signature] / [Jurat]

9. Frequently Asked Questions

Question	Answer
“Can I sue for moral damages?”	Yes—harassment and public shaming can entitle you to moral & exemplary damages under Civil Code §§2217–2229.
“Is there a cap on interest?”	No fixed cap since Central Bank Circular 905 (1983); courts instead void rates that are “iniquitous or unconscionable.”
“What if the company is abroad?”	Still covered if it solicits or transacts with persons in the Philippines; SEC can block its app/website and coordinate with Interpol & DICT.
“Will filing a complaint freeze my payments?”	Not automatically—you must seek a court injunction or negotiate a stand-still agreement.

10. Final Take-Aways

Document everything early; screenshots and e-mails win cases.
File with the correct forum—SEC for lending companies, NPC for privacy, BSP for banks.
Regulators now act faster thanks to RA 11765—administrative orders can award restitution in as little as 60 days.
Multiple remedies often overlap; a well-prepared complainant can pursue administrative, criminal, and civil routes simultaneously.
Stay vigilant—new scam variants arise (e-wallet top-ups, “buy-now-pay-later” clone apps). Regulatory frameworks evolve, so monitor SEC advisories.

Need personalized advice? Consult a Philippine lawyer or the free Integrated Bar of the Philippines (IBP) Legal Aid Clinic at your local chapter.