Philippine Legal Context under the Data Privacy Act of 2012 (RA 10173)

In the digital lending landscape, your personal information is the "currency" that grants you access to credit. However, once a loan is settled or a service is no longer desired, many users feel a sense of unease regarding the sensitive data—contacts, location, and IDs—stored on a company's servers.

Under the Data Privacy Act of 2012 (DPA) and its Implementing Rules and Regulations (IRR), you possess the Right to Erasure or Blocking. Here is everything you need to know about enforcing that right against lending applications.

1. Your Legal Basis: The Right to Erasure

Section 16(e) of the DPA provides data subjects the right to suspend, withdraw, or order the blocking, removal, or destruction of their personal information from a personal information controller’s (PIC) filing system.

You can exercise this right if:

The data is no longer necessary for the purpose for which it was collected.
You withdraw your consent (and there is no other legal ground for processing).
The data was processed unlawfully.
The data is outdated, false, or prejudice to you.

2. The "Catch": When Can a Lending App Refuse?

While the law empowers you, it is not absolute. Lending apps may legally deny a deletion request if:

Existing Obligations: You have an outstanding balance. The data is necessary to fulfill the contract (repayment).
Regulatory Requirements: The Bangko Sentral ng Pilipinas (BSP) or the Anti-Money Laundering Council (AMLC) requires financial institutions to retain records for a specific period (usually 5 years after the account is closed) for audit and anti-money laundering purposes.
Legal Claims: The data is needed for the establishment, exercise, or defense of legal claims.

3. Step-by-Step Process for Requesting Deletion

Step A: Verification of Account Status

Ensure your loan is fully paid. Obtain a Certificate of Full Payment or a screenshot of your zero balance. A PIC is unlikely to honor a deletion request for an active debtor.

Step B: Contact the Data Protection Officer (DPO)

Every registered lending company is required by the National Privacy Commission (NPC) to have a Data Protection Officer.

Check the app’s "Privacy Policy" or "About Us" section for the DPO’s email address.
Avoid just messaging general customer support; they often lack the technical or legal training to handle formal DPA requests.

Step C: Submit a Formal Written Request

Your email/letter should be concise and cite the law.

Subject: Formal Request for Erasure of Personal Data – [Your Full Name] Dear Data Protection Officer, Pursuant to Section 16(e) of Republic Act No. 10173 (Data Privacy Act of 2012), I am formally requesting the permanent deletion of all my personal and sensitive personal information from your databases, servers, and third-party partners. My account with [App Name] is fully settled as of [Date]. As our contractual relationship has ended, I am withdrawing my consent for any further processing of my data. Please provide written confirmation once the erasure has been completed.

4. What if the App Ignores You?

If the lending app refuses to delete your data without a valid legal reason, or if they fail to respond within fifteen (15) days, you have recourse:

File a Formal Complaint with the NPC: You can submit a "Statement of Concern" or a formal complaint via the NPC’s official website.
Reporting Harassment: If the app uses your data to harass your contacts (a common violation), this constitutes Unauthorized Processing and Malicious Disclosure, which are criminal offenses under the DPA.

5. Essential Tips for Borrowers

Revoke App Permissions: After uninstalling the app, go to your phone settings and manually revoke permissions for "Contacts," "Camera," and "Location."
Keep Records: Save all transcripts of communication with the lender.
Check NPC Registration: Before dealing with an app, verify if they are registered with the NPC and the Securities and Exchange Commission (SEC). Unregistered apps are "fly-by-night" operations and rarely comply with data deletion requests.

Would you like me to draft a more detailed formal demand letter tailored to a specific lending company?