The rise of digital lending platforms and online credit apps has led to a surge in reports regarding aggressive debt collection practices. While creditors have a right to collect what is owed, the Philippine legal system provides clear boundaries to protect the dignity and privacy of borrowers. When a collector crosses the line into harassment, it ceases to be a civil matter and can become a criminal one.

1. Prohibited Acts: When Does Collection Become Harassment?

Under SEC Memorandum Circular No. 18 (Series of 2019), the Securities and Exchange Commission (SEC) explicitly lists "Unfair Debt Collection Practices." These rules apply to financing and lending companies:

Threats of Violence: Any use or threat of force to harm the person, reputation, or property of the borrower.
Obscene/Profane Language: Using insults or foul language to shame the borrower.
Disclosure of Information: Contacting the borrower's contacts (family, friends, or employers) who are not guarantors, or publishing the names of "delinquent" borrowers on social media.
Deceptive Representations: Falsely claiming to be a lawyer, a police officer, or a representative of a government agency.
Harassing Contact: Making phone calls at unreasonable hours (before 6:00 AM or after 10:00 PM), or calling repeatedly with the intent to annoy or harass.

2. Legal Bases for Criminal Complaints

If a collector violates the law, several statutes can be used to file criminal or administrative charges:

A. The Cybercrime Prevention Act of 2012 (R.A. 10175)

Most modern harassment occurs via SMS or social media.

Cyber-Libel: If a collector posts your personal details or debt status on Facebook to shame you.
Computer-related Identity Theft: If they use your profile picture or personal data to create fake accounts to harass others.

B. The Data Privacy Act of 2012 (R.A. 10173)

Unauthorized processing of personal data is a serious offense. Collectors who access your phone's contact list without explicit, informed consent—or who use that data to harass third parties—violate this Act. Complaints can be filed with the National Privacy Commission (NPC).

C. Revised Penal Code (RPC)

Grave or Light Threats (Art. 282-283): Threatening to harm the borrower or their family.
Grave or Light Coercion (Art. 286-287): Forcing a borrower to do something against their will (e.g., forcing them to sign a document under duress).
Unjust Vexation: A broad category covering any act that causes annoyance, irritation, or mental distress to the borrower.

D. SEC Regulations

Violation of SEC MC No. 18 can lead to the suspension or revocation of the lending company’s Certificate of Authority and the imposition of heavy fines.

3. Step-by-Step Legal Remedies

If you are a victim of harassment, follow these steps to build your case:

Document Everything: Take screenshots of messages, record phone calls (informed consent rules may apply, but in the context of a crime, these are vital), and keep a log of the dates and times of contact.
Identify the Entity: Determine the name of the lending app and the company behind it. Check if they are registered with the SEC.
Cease and Desist: Formally notify the collector (via email or recorded chat) that their behavior is harassing and that you will take legal action if it continues.
File a Complaint with the NPC: If it involves your personal data or contact list, use the NPC’s online complaints portal.
File a Complaint with the SEC: Specifically for violations of "Unfair Debt Collection Practices."
Police Assistance: For direct threats to your life or safety, report the incident to the PNP Anti-Cybercrime Group (ACG) or your local police station to blotter the incident.

4. Important Clarification: "No Imprisonment for Debt"

It is a constitutional right in the Philippines that "no person shall be imprisoned for debt." (Article III, Section 20, 1987 Constitution).

Collectors often threaten borrowers with "Estafa" or "Small Claims" jail time.
Reality Check: You cannot go to jail for simply being unable to pay a loan. You can only face imprisonment if you committed fraud (like using a fake identity) or if you issued a bouncing check (BP 22).

Note: Dealing with collectors requires a balance of acknowledging the debt while asserting your legal rights. Paying the principal debt does not excuse the collector's criminal liability for harassment.

Would you like me to draft a formal Cease and Desist letter that you can send to a collection agency or lending app?