Dealing with Threats from Online Lenders in the Philippines

A Comprehensive Legal Guide (2025 Edition)

Disclaimer: This article is for general informational purposes only and does not create a lawyer‑client relationship. Laws and agency rules evolve; consult a qualified Philippine lawyer or the relevant regulator for advice on your specific situation.

1. Why the Issue Matters

Since 2017, hundreds of mobile‑app “online lenders” have offered short‑term, high‑interest loans to Filipinos. Many operate lawfully, but a persistent subset resorts to harassment, “doxxing,” public shaming, and criminal threats when borrowers fall behind. The Securities and Exchange Commission (SEC) has revoked more than 100 lending company licenses, yet complaints remain one of the top categories received by the National Privacy Commission (NPC) and the Philippine National Police Anti‑Cybercrime Group (PNP‑ACG).

2. Typical Threat Tactics

Threat	Common Form	Potential Legal Violation
Defamatory messages to family/contacts	Text blasts or Facebook posts claiming the borrower is a “scammer”	Libel (Art. 353, Revised Penal Code), Unlawful Debt Collection (SEC MC 19‑2019)
Grave threats & harassment	“We will have you arrested” / “Expect someone at your door”	Grave Threats (Art. 282 RPC), Unjust Vexation (Art. 287 RPC)
Unauthorized contact scraping	App requires full contact list then spams it	Illegal Processing of Personal Data (RA 10173, Data Privacy Act)
Contact‑and‑location tracking	GPS + persistent calls >10×/day	Stalking/Harassment; Unfair Debt Collection (SEC rules)
Public posting of borrower photos	Posting borrower’s selfie with “wanted” banner	Cyber Libel, Anti‑Photo & Video Voyeurism Act (RA 9995)
Exorbitant interest & hidden charges	APR > 360 %	Interest‑rate caps (SEC MC 3‑2022); potentially unconscionable under Civil Code Art. 1306

3. Governing Legal & Regulatory Framework

3.1 Lending & Interest‑Rate Regulation

Regulation	Key Points (2025)
Lending Company Regulation Act (RA 9474)	SEC license required; violation leads to fines/closure.
SEC Memorandum Circular 3‑2022	Caps payday/short‑term consumer loans at 0.15 % interest per day (≈4.5 %/mo) and 5 % one‑time processing fee; late‑payment penalty ≤0.5 %/day. Continues to apply in 2025.
BSP Circular 1133‑2021 (Credit Cards)	3 %/month finance‑charge ceiling on card balances (illustrative; online lenders sometimes disguise products as “cards”).

3.2 Fair Debt‑Collection Rules

SEC Memorandum Circular 19‑2019 Prohibited practices:
1. Use of threats or violence.
2. Public disclosure of borrower’s debt.
3. Contacting persons in borrower’s phonebook other than guarantors/next of kin.
4. False representation as a law‑enforcement officer or lawyer.
SEC MC 16‑2023 created an Online Lending Oversight Division; repeat violators face permanent disqualification of directors/officers.

3.3 Data Privacy & Cyber‑crime

Statute	Relevant Provisions
Data Privacy Act (RA 10173)	Consent must be freely given, specific, informed. “Contact scraping” for harassment ≙ unauthorized processing → imprisonment 1–6 yrs & ₱500k–₱4 M fine.
Cybercrime Prevention Act (RA 10175)	Cyber libel, illegal access, and identity theft penalties apply when acts are committed via the internet.
Financial Products & Services Consumer Protection Act (RA 11765, 2022)	Empowers SEC/BSP/IC to issue restitution orders, award damages ≤₱2 M, and suspend erring entities.

3.4 Criminal Offenses Often Implicated

Grave Threats (Art. 282 RPC)
Light Threats & Unjust Vexation (Art. 285 & 287 RPC)
Libel & Cyber Libel (Art. 353 RPC & RA 10175)
Alarm & Scandal (Art. 155 RPC) for loud, disturbing visits
Stalking (punished under Safe Spaces Act – RA 11313)

4. Your Legal Rights as a Borrower

Right to Privacy – lenders may collect only data strictly necessary to process the loan (NPC Advisory Opinion 2020‑021).
Right to Fair Collection – no harassment, profanity, or public shaming (SEC MC 19‑2019).
Right to Dispute Charges – under RA 11765, you may demand investigation of questionable fees.
Right to Access & Erasure – request the deletion of your contact list and photos (Data Privacy Act).
Right to Redemption & Installment – Civil Code allows payment extensions if parties agree; coercion invalidates consent.

5. Remedies and Enforcement Pathways

5.1 Administrative

Agency	What It Can Do	How to File
SEC – Corporate Governance & Finance Dept.	Investigate unfair debt‑collection, revoke license, impose fines up to ₱2 M per violation	Online complaint form + evidence
National Privacy Commission	Compel data deletion, award damages, block the app	E‑mail complaint with screenshots/logs
BSP (if lender is a bank/e‑money issuer)	Issue cease‑and‑desist, consumer redress	Via Consumer Assistance Form

5.2 Criminal

File an affidavit‑complaint before the Office of the City/Provincial Prosecutor for:

Grave threats, unjust vexation, libel, violation of RA 10175 or RA 10173.
Attach screenshots, call logs, copy of loan agreement, SEC Certificate of Non‑Registration (if unlicensed).

5.3 Civil

Injunction & Damages: RTC has jurisdiction if damages >₱2 M; otherwise MTC.
Small Claims (≤₱200 k) to contest unlawful charges or recover amounts paid under duress.
Invoke Art. 19‑21 Civil Code for abuse of rights.

6. Evidence Gathering Checklist

Screen‑record abusive calls (Android/IOS native record + notice to other party not required for threats).
Take dated screenshots of text/Facebook/Viber messages.
Download app permission logs showing contact access.
Print account statement reflecting excessive interest.
Secure a police blotter within 24 h for grave threats.

7. Practical Step‑by‑Step Guide for Victims

Stop granting permissions. Disable contact/GPS access in phone settings or uninstall the app.
Send a Cease‑and‑Desist e‑mail invoking SEC MC 19‑2019 & RA 10173.
Notify contacts that any defamatory message is false and that legal action is underway.
File simultaneous complaints with SEC (unfair collection), NPC (privacy), and PNP‑ACG (cybercrime).
Consider partial settlement only through traceable channels (bank transfer) and obtain a Quitclaim.
Maintain a timeline diary for each threat; needed by prosecutors.
Seek psychological support. Harassment can be traumatic; barangay Women & Family desks offer counseling.

8. Frequently Asked Questions

Question	Short Answer
Is it illegal interest if the rate is >4.5 %/month?	For SEC‑registered lending/financing companies, yes under MC 3‑2022. For informal lenders, the rule still guides courts in finding rates unconscionable under Art. 1229 Civil Code.
Can the lender “blacklist” me with the NBI or BI?	No. Only courts can issue Hold Departure or arrest; debt is civil in nature unless fraud is proven.
Will bankruptcy erase the debt?	The Philippines lacks a personal bankruptcy statute; you remain liable unless the lender condones the balance or a court annuls the contract.

9. Useful Contacts (2025)

SEC CGFD Complaint Assistance – (+632) 8818‑0921; cgfd@sec.gov.ph
NPC Complaints & Investigation – complaints@privacy.gov.ph; hotline (+632) 8234‑2228
PNP Anti‑Cybercrime Group – 0998‑598‑8116 (Smart); acg@pnp.gov.ph
Integrated Bar of the Philippines Free Legal Aid – (02) 8657‑3592

10. Templates

(copy & adapt)

Cease‑and‑Desist Letter

Subject: Unlawful Debt‑Collection and Data Privacy Violations Dear [Lending Company], I am writing to demand that you immediately cease all forms of harassment, including ... [details] ... Your actions violate SEC MC 19‑2019 and RA 10173. I will pursue legal remedies without further notice. — [Name] / [Date]

NPC Complaint Affidavit

I downloaded “[App Name]” on ______.

On ______, the respondent accessed my entire contact list without consent ...

(Attach screenshots as Annex “A”)

11. Final Word

While online lenders fill a real credit gap, harassment and threats are never legal collection tools. Philippine law—strengthened by the 2022 Financial Consumer Protection Act—now gives borrowers multiple venues for relief, from agency complaints to criminal prosecution. The key is swift documentation and parallel filing with the SEC, NPC, and law‑enforcement bodies. If in doubt, consult counsel; but know that the law is squarely on the side of consumer dignity and privacy.

Dealing with Threats from Online Lenders in the Philippines