Complaint Against Online Lending App Harassment in the Philippines A comprehensive legal guide as of May 2025

1. Introduction

Since 2019, complaints have surged against Philippine-based online lending apps (OLAs) that collect borrowers’ phone-book contacts, broadcast shaming messages, threaten arrest, or otherwise hound debtors. What began as a fintech convenience has, for many consumers, become a source of privacy invasion and psychological abuse. This article synthesizes every major rule, remedy, and recent development relevant to harassment by online lenders, with an emphasis on practical, step-by-step enforcement options.

2. Governing Laws & Regulations

Legal Instrument	Key Provisions for OLA Harassment
Republic Act (RA) 9474 – Lending Company Regulation Act	Requires SEC registration; Sec. 6 authorizes the SEC to suspend or revoke licenses for “fraudulent, dishonest or illegal” practices.
SEC Memorandum Circular (MC) 18-2019	Defines unfair debt collection (threats, use of profane language, publication of borrowers’ names, contact-harassing third parties, etc.); imposes ₱25,000-₱1 million fines and/or license revocation.
SEC MC 10-2021	Extends MC 18-2019 to financing companies; requires lenders to submit their online lending platforms (OLPs) for prior approval.
Moratorium Order (Nov 2021, still in force 2025)	Freezes new OLP registrations while the SEC evaluates consumer protection gaps.
RA 11765 – Financial Consumer Protection Act (2022)	Elevates abusive collection to a violation of law; empowers the BSP, SEC & IC to adjudicate and award damages in-house up to ₱10 million.
RA 10173 – Data Privacy Act (DPA)	Outlaws processing of unnecessary personal data (e.g., borrowing your contacts list) without freely given, informed consent; Sec. 25-34 prescribe fines up to ₱5 million and imprisonment.
NPC Circular 20-01	Classifies “excessive or unauthorized debt collection” as a data privacy breach; provides summary penalty procedure.
RA 10175 – Cybercrime Prevention Act	Converts acts punishable under the Revised Penal Code (RPC) (e.g., libel, threats, coercion) into cyber offenses with higher penalties if done through computer systems.
RPC Articles 282, 287, 287, 364	Grave threats, unjust vexation, coercion, and libel respectively apply when collectors threaten harm, repeatedly badger, or publicly defame.
RA 11313 – Safe Spaces Act	Penalizes gender-based online harassment (e.g., misogynistic slurs in collection messages).
RA 7394 – Consumer Act	Prohibits deceptive or unfair sales acts; actionable via the DTI.

3. Common Harassment Tactics and Corresponding Violations

OLA Tactic	Typical Legal Breaches
Contact scraping & group texts to your entire phonebook	DPA (unlawful processing), SEC MC 18-2019 (unfair debt collection).
“Shaming posters” on Facebook, with your photo & debt amount	Cyber-libel (RA 10175), DPA (unauthorized disclosure), Safe Spaces Act if gendered.
Threats of arrest or “NBI pick-up”	Grave threats (RPC 282); unfair collection (SEC MC).
Repeated 50+ calls per day / vulgar language	Unjust vexation (RPC 287); unfair collection.
Spoofing messages—“You are wanted, warrant no. 123…”	Falsification (RPC 171) + cybercrime aggravation.

4. Remedies and Enforcement Channels

Securities and Exchange Commission (SEC) Jurisdiction: All lending and financing companies. Procedure:
- Download Complaint Form for Unfair Debt Collection (MC 18-2019 Annex A).
- Attach: screenshots, call recordings, copies of loan agreement, proof of identity.
- File in person at the SEC Main Office – FINEXT Building, Ortigas, or via email (cgfd@sec.gov.ph).
- SEC may issue: (a) Show-cause order, (b) Cease-and-desist order (CDO), (c) License revocation, (d) Administrative fines.
National Privacy Commission (NPC) Jurisdiction: Data privacy violations. Procedure:
- Use the NPC “Data Breach & Privacy Complaint” online portal.
- 15-day mediation; if unresolved, NPC issues a Decision & Order enforceable by writ of execution.
- Penalties: up to ₱5 million per act plus imprisonment (enforced by DOJ).
Bangko Sentral ng Pilipinas (BSP) If the lender operates under a bank/e-money issuer license.
- File via BSP Online Buddy (BOB).
- BSP may impose fines, suspend officers, order restitution.
Philippine National Police – Anti-Cybercrime Group (PNP-ACG) / NBI Cybercrime Division
- File affidavit-complaint for Cyber-libel, Cyber-threats, Unjust Vexation, etc.
- Provide digital evidence in forensically sound copies.
- Prosecutor’s office conducts inquest or pre-investigation; Regional Trial Court (RTC) cybercrime branch hears the case.
Civil Action for Damages
- Grounds: Violation of Human Relations provisions (Civil Code Arts. 19-21, 26) plus moral, exemplary, nominal damages (Art. 2219-2224).
- Venue: RTC if claim > ₱2 million; otherwise Metropolitan/Municipal Trial Court.

5. Evidence Preservation Tips

Evidence	How to Authenticate
SMS / Messenger screenshots	Have them print-screen-capture with the device clock visible; execute a Sworn Certification of Authenticity under Rule 5, Rules on Electronic Evidence.
Call logs / recordings	Obtain telco “Call Detail Records” via subpoena or upon request in a criminal case.
App permissions list	Go to phone Settings → App Info → Permissions; screenshot for proof of excessive access.
Transaction history	Export STL file or bank statement to show repayments / ledger.

6. Significant Case Milestones (2019-2024)

| Year | Agency Action / Case | Outcome | |---|---| | 2019 | SEC vs. FDS Loan Corp., Moola Lending Corp. | 48 OLPs shut down; ₱4.4 million fines; first mass revocation invoking MC 18-2019. | | 2020 | NPC Decision: TukTuk Cash et al. | ₱3 million total fines for unlawful processing; ordered permanent deletion of scraped contacts. | | 2021 | *People v. Bala Lending (RTC Pasig)** | First criminal conviction for cyber-libel by OLA staff; 2-year prision correccional & ₱300k damages (on appeal as of 2025). | | 2022 | RA 11765 signed | Empowers SEC/BSP/IC to award up to ₱10 million damages administratively. | | 2023 | SEC FinTech Office created | Centralizes licensing & monitoring of 100 approved digital lenders; issues monthly watch-list advisory. | | 2024 | House Bill 8445 (Fintech Consumer Protection Act) | Pending in Senate; proposes criminalizing predatory interest rates >36% APR. |

7. Step-by-Step Complaint Flowchart

Gather proof (screenshots, recordings, IDs, contract).
Send a Demand/“Cease Harassment” Letter by registered mail/email (optional but builds good faith).
File SEC or NPC complaint (they can run concurrently).
If threats/libelous posts persist, file criminal complaint with PNP-ACG or NBI.
If you suffered quantifiable injury (lost job, anxiety disorder), file civil damages suit—may be suspended pending criminal resolution but not vice-versa.
Monitor orders: SEC CDOs & NPC Decisions are enforceable; non-compliance justifies contempt.

8. Preventive Measures for Borrowers

Check SEC list of registered OLPs before installing.
Limit app permissions to camera & storage only; deny contacts & location.
Read the privacy policy; “access to contacts for KYC” is never legitimate under BSP rules.
Keep an emergency fund to avoid payday loans exceeding 36% APR.
Educate relatives so they recognize and ignore harassment calls.

9. Compliance Checklist for Legitimate Lenders

Requirement	Source
Consent must be freely given, specific, informed	DPA §3(b)
No contact with third parties except to obtain borrower’s location	SEC MC 18-2019 §4(j)
Must provide 3-day prior notice before classifying account as delinquent	RA 11765 IRR Rule 4.9
Effective annual interest rate (EIR) disclosure	BSP Circular 1133-2022
Mandatory complaints handling unit & single-hotline	RA 11765 §6

10. Frequently Asked Questions

Q1. Can the app sue me for defamation if I post about their harassment?

Truthful, good-faith communication to protect your rights is a privileged communication (RPC 354 exception). Keep posts factual and avoid name-calling.

Q2. Will uninstalling the app stop the messages?

It cuts live permissions, but they already stored your contacts on their server—a privacy violation you can cite in an NPC complaint.

Q3. Does paying the debt erase liability for their past harassment?

No. Their violations remain actionable; settlement may waive but must be express and in writing under Art. 1270 Civil Code.

11. Conclusion

Victims of OLA harassment in the Philippines now wield a multi-layered defensive arsenal: the SEC’s unfair collection rules, the NPC’s privacy enforcement powers, the BSP and RA 11765’s administrative damages, and traditional criminal-civil actions. While regulatory momentum since 2019 has shuttered dozens of abusive platforms and raised fines into the millions, consumer vigilance remains crucial. Document every contact, invoke the proper forum promptly, and leverage overlapping remedies to compel compliance or secure compensation. As fintech expands, so too does Philippine law’s commitment to privacy, dignity, and fair commerce.

This article reflects statutes, rules, and publicly reported cases up to 29 May 2025. It is for informational purposes and not a substitute for personalized legal advice.