Dealing with Harassment Messages from Loan Collectors in the Philippines
A practical legal guide for borrowers, lawyers, and consumer advocates
1. Why this matters
Unlawful debt‑collection tactics—threats, public shaming texts, contacting people in your phonebook, or incessant calls—have surged in the Philippines, especially with the rise of online‑lending apps (OLAs). While collectors may legitimately pursue payment, Philippine law draws a hard line between lawful collection and harassment. Understanding where that line is—and how to enforce it—empowers borrowers and deters abusive lenders.
2. The Legal Framework
| Instrument | Key Provisions on Harassment | Coverage / Regulator |
|---|---|---|
| Republic Act No. 9474 (Lending Company Regulation Act of 2007) | Lending companies must conduct business “honestly and fairly.” SEC can suspend or revoke licenses for unethical collection. | SEC |
| SEC Memorandum Circular No. 18‑2019 | Prohibits: use of threats or obscene language; disclosure of borrower’s debt to third parties; contacting persons from phonebook; false representations; simulating official documents. Provides fines (P25 000‑P1 000 000) and license revocation. | SEC |
| SEC MC No. 10‑2021 | Requires complaint handling units and 3‑day acknowledgment of consumer complaints. | SEC |
| Republic Act No. 11765 (Financial Consumer Protection Act of 2022) | Declares harassment “unsafe or unfair.” Empowers BSP, SEC, Insurance Commission, and CDA to award damages up to P2 000 000 and issue restitution orders. | BSP/SEC/IC/CDA |
| Bangko Sentral ng Pilipinas Circular No. 1160 (2023) | Banks, Credit‑Card Issuers & Financing Companies must avoid “any act that is coercive, abusive or harassing.” Requires pre‑collection notice and documented call logs. | BSP |
| Republic Act No. 10173 (Data Privacy Act) & NPC Circular 16‑01 | “Unjustified collection and disclosure” of contact list, photos, or sensitive data is a punishable unauthorized processing (3‑6 years imprisonment + P500 000‑P4 000 000 fine). | National Privacy Commission |
| Republic Act No. 10175 (Cybercrime Prevention Act) | Online threats, libel, or harassment qualify as cyber‑libel or computer‑related harassment (Art. 355 & Art. 287 RPC in relation to RA 10175). | DOJ – OOC & PNP‑ACG |
| Revised Penal Code (selected articles) | Art. 282 – Grave threats; Art. 287 – Unjust vexation; Art. 290 – Violation of privacy of communication. | Prosecutors / Courts |
| Civil Code Art. 19, 20, 21 & 2176 | Bad‑faith collection can give rise to tort, moral, exemplary, and nominal damages. | Civil courts |
| Barangay Justice System (Katarungang Pambarangay) | Victims may seek conciliation or file for Protection Order if violence or gender‑based harassment is involved. | Barangay |
| E‑Commerce & Consumer Acts | DTI can act on deceptive collection advertisements or misrepresentation. | DTI |
3. What Counts as Harassment?
Collectors may:
- Send polite reminders, billing statements, or settlement offers.
- File a legitimate civil or criminal action for collection.
Collectors **may NOT:
- Threaten you with arrest, harm, or public humiliation.
- Disclose your debt to your employer, relatives, Facebook friends, or any third‑party who is not a guarantor.
- Use profane/obscene language or slurs.
- Call or text at unreasonable hours (generally before 6 a.m. or after 10 p.m., or more than once every day after a written cease‑and‑desist).
- Access or scrape your phone contacts to blanket‑text them.
- Impersonate a judge, lawyer, police officer, or government agency.
- Send fake legal documents (e.g., “subpoena” on plain bond paper) or threaten “immediate arrest” without court order.
- Publish or post your photo on social media calling you a “scammer” or “delinquent.”
Any of the above triggers administrative liability (SEC/BSP), and may create criminal or civil liability.
4. Borrower Rights at a Glance
| Right | Source | Practical Effect |
|---|---|---|
| To be free from abusive, coercive, or misleading collection practices | RA 11765; SEC MC 18‑2019; BSP Circular 1160 | You can demand the collector to stop and file a regulatory complaint. |
| To privacy of personal data | RA 10173 | Collector cannot share your contacts or photos without consent. |
| To accurate accounting of your debt | RA 11765; BSP Manual of Regulations for Banks (MORB) | Request a breakdown of principal, interest, penalties. |
| To dispute or verify the debt | RA 11765 (written validation within 30 days) | Collector must suspend collection until verification is sent. |
| To damages | Civil Code arts. 19‑21, 2176 | Sue for moral & exemplary damages if harassment caused mental anguish. |
| To reconciliatory/barangay mediation | LGC 1991, RA 9285 (ADR Act) | Cheaper, faster community‑level remedy. |
5. Your Toolkit: How to Respond Step by Step
Step 1 Gather Evidence
- Keep screenshots of messages (showing sender’s number, date/time stamp, threats).
- Record phone calls (per SC A.M. 17‑11‑12‑SC, a party may record a conversation they are part of).
- Preserve voicemails, emails, caller ID logs, and social‑media posts.
Step 2 Send a Cease and Desist / Validation Letter
- Cite SEC MC 18‑2019, RA 11765 §7, and Data Privacy Act.
- Request full statement of account and identify lawful contact hours.
- State that further harassment will be reported and recorded. (Keep proof of receipt—registered mail or email read‑receipt.)
Step 3 File Administrative Complaints
| Where | Who Can You Complain Against | How |
|---|---|---|
| SEC Corporate Governance & Finance Dept | Lending companies/OLAs (registered or unregistered) | Online form or email (cgfd@sec.gov.ph), attach evidence. |
| BSP Financial Consumer Protection Dept | Banks, thrift banks, credit‑card issuers, non‑bank FXDs | Submit via BSP Online Buddy or email (consumeraffairs@bsp.gov.ph). |
| National Privacy Commission | Any entity misusing contacts/data | Fill out NPC Complaints‑Assisted e‑Form, attach proof. |
| DTI Fair Trade Enforcement Bureau | False advertising or deceptive collection notices | Call 1‑D‑T‑I (1‑384). |
Regulators can summon the collector, impose fines, order deletion of your data, suspend operations, or revoke the firm’s Certificate of Authority.
Step 4 Consider Criminal Action
- File a police blotter at the local PNP station or PNP Anti‑Cybercrime Group (Camp Crame or regional cyber units).
- Execute a sworn statement citing applicable RPC articles (e.g., Art. 282 grave threats) or RA 10175 §6 (cyber libel/harassment).
- The prosecutor’s office will conduct inquest or pre‑investigation.
Step 5 Pursue Civil Damages (Optional)
- File a tort suit for violation of Art. 19‑21 Civil Code.
- Claim moral damages (for sleepless nights, anxiety) + exemplary damages to deter repeat conduct.
- Small claims up to ₱ 400 000 may be filed without a lawyer (AM 08‑8‑7‑SC).
6. Special Issues with Online Lending Apps (OLAs)
App Permissions
- Under SEC MC 19‑2022, OLAs may only request: (a) camera (for KYC selfie), (b) microphone (for video‑KYC), (c) location (once), and must not require contact list or photo gallery.
Platform Delisting
- SEC may order Google Play & Apple App Store to remove erring OLAs (see SEC Order vs. JuanHand, 2023).
NPC Enforcement
- Cases (e.g., FCollect Decision 2022‑034) show NPC awarding up to P200 000 in damages for contact‑scraping.
Joint Liability
- Marketing affiliates who forward the harassing messages may also be held liable under RA 11765 §35 for “aiding and abetting” unfair collection.
7. Penalties Snapshot
| Violation | Fine / Imprisonment |
|---|---|
| SEC MC 18 (1st offense) | ₱ 25 000 – ₱ 50 000 |
| SEC MC 18 (3rd offense) | Up to ₱ 1 000 000 + revocation of license |
| RA 10173 Unauthorized Processing | 3‑6 yrs + ₱ 500 000 – ₱ 4 000 000 |
| Cyber‑libel (RA 10175 §6) | Prisión mayor (6‑12 yrs) + fine to be set by court |
| Grave Threats (RPC 282, if with demand) | Prisión mayor + ₱ 100 000‑P500 000 (as amended by RA 10951) |
| Unjust Vexation (RPC 287) | Arresto menor + fine up to ₱ 100 000 |
| Non‑compliance with RA 11765 order | Up to ₱ 2 000 000 + daily penalties |
8. Frequently Asked Questions
Q1: The collector is based abroad; can Philippine laws still apply?
If the harassment targets a borrower physically in the Philippines (or uses Philippine phone numbers, SIMs, or apps available locally), local regulators may still assert jurisdiction. Reach out to SEC or NPC and provide evidence.
Q2: Will blocking the number waive my right to complain?
No. You may block to restore peace of mind while still preserving earlier evidence.
Q3: I signed a consent allowing them to “contact my friends.” Is that valid?
Under the Data Privacy Act, consent must be specific, informed, freely given, and limited to declared purpose. Blanket “contact‑list scraping” is excessive and void.
Q4: They threaten to post my nude photos.
That is Photo and Video Voyeurism (RA 9995) + grave threats. Go straight to PNP‑ACG and request in‑camera protection.
9. Best‑Practice Checklist for Borrowers
- ✅ Read loan contracts carefully; note interest, penalties, and dispute addresses.
- ✅ Keep all correspondence. Do not delete messages until the matter is resolved.
- ✅ Respond once requesting validation and lawful channels; after that, avoid engaging with abusive language.
- ✅ Report to SEC/BSP/NPC immediately upon receiving threats or third‑party disclosures.
- ✅ Consider credit counseling with registered financial planners if repayment difficulty is genuine.
- ✅ Document psychological impact (medical consults, therapist notes) for moral‑damages claims.
10. Conclusion
Philippine law increasingly favors consumer dignity: regulators now wield clear statutory teeth to punish abusive collectors, whether traditional or app‑based. Borrowers who methodically collect evidence, assert their statutory rights, and engage the proper agencies can stop harassment and, in many cases, obtain compensation. Meanwhile, ethical lenders who comply with RA 11765, SEC/BSP circulars, and the Data Privacy Act protect not only borrowers but also their own long‑term viability.
Know the rules, keep calm, document everything—harassment has no place in lawful debt collection.