Debt Collection Harassment in the Philippines: What Collectors Can and Cannot Do (SEC & BSP Rules)

This guide distills the core rules and remedies on debt-collection conduct in the Philippines under the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP). It’s practical, borrower-facing, and equally useful for compliance teams. It is general information, not legal advice.

1) Who regulates what?

SEC — supervises lending companies (LCs), financing companies (FCs), and their third-party service providers (e.g., collection agencies and “field collectors”). SEC issued a Memorandum Circular in 2019 that expressly prohibits unfair debt-collection practices by LCs/FCs and their agents. Sanctions include fines, suspension, or revocation of authority to operate.
BSP — supervises banks, credit-card issuers, quasi-banks, pawnshops, EMIs, and other BSP-supervised financial institutions (BSFIs). BSP’s consumer-protection issuances (and the Credit Card Industry Regulation Law (CCIRL) with its rules) ban abusive collection and require robust oversight of third-party collectors. BSP can impose administrative penalties, directives, and other enforcement actions.
Financial Consumer Protection Act (FCPA, 2022) — overarching law empowering SEC and BSP to stop abusive collection, order restitution, and penalize supervised entities.
Data Privacy Act (DPA) — while not the focus here, it intersects with SEC/BSP rules (e.g., shaming via contact-list scraping is both unfair collection and a privacy violation).

Rule of thumb:

If your lender is a bank/credit-card issuer/pawnshop → BSP.
If it’s a lending/financing company (including many online lending apps) → SEC.

2) What counts as “debt-collection harassment”?

Under both SEC and BSP regimes, harassment covers threatening, intimidating, misleading, or publicly shaming behavior, or invading privacy beyond what’s needed to collect. Below is a consolidated “can’t do” list (SEC for LCs/FCs; BSP/CCIRL for banks/CC issuers; both bind their third-party collectors as if they were the principal):

Absolutely prohibited practices

Threats & intimidation
- Threatening violence, harm, or criminal cases for mere non-payment of a civil debt.
- Posing as police, prosecutors, judges, or government officials, or implying you can be jailed just for not paying.
Public shaming / doxxing
- Posting or messaging on social media about your debt; creating group chats with your contacts; tagging your employer, neighbors, or family to shame you.
- Publishing lists of alleged debtors (outside lawful credit-bureau reporting).
Contacting the wrong people
- Telling your employer, co-workers, neighbors, classmates, or relatives (who are not co-makers/guarantors) about your debt.
- Repeatedly calling “character references” to pressure you (they may be contacted only to locate you, briefly and without disclosure of the debt).
Unreasonable timing or frequency
- Calling or messaging at unreasonable hours (especially late night/very early morning), on rest days/holidays, or relentlessly in a way intended to annoy or exhaust you.
Abusive language & humiliation
- Using insults, profanity, slurs, or any language meant to humiliate or coerce.
False or misleading representations
- Fabricating case numbers, “subpoenas,” or “warrants,” or misrepresenting fees, interest, or legal rights (e.g., claiming the collector may seize property without court process).
Unlawful taking or interference with property
- Forcible repossession or entering your home/office without consent or court order; any act that breaches the peace.
Data-privacy violations
- Scraping your phone contact list or photos to shame you; demanding excessive personal data unrelated to collection; sharing your data with others without lawful basis.
Unauthorized charges
- Imposing “collection fees,” “field visit fees,” or “legal fees” not in your contract or otherwise unlawful; padding amounts; hiding computations.
Ignoring representation

Continuing to harass you after you’ve formally designated a lawyer or a specific channel for communications (they may still send lawful notices).

The principal (bank/LC/FC) is responsible for the actions of its collectors. “It was our agency, not us” is not a defense.

3) What collectors may lawfully do

Done properly and respectfully, the following are generally allowed:

Contact you directly by phone/SMS/email/app during reasonable hours, stating the company name, collector’s identity, amount due, due date, and legitimate options (repayment plans, restructuring).
Send written notices (including demand letters) to your last known address/e-mail.
Reach out to your nominated contact person solely to obtain updated contact details, without discussing the debt (one-off, minimal disclosure).
Contact the co-maker/guarantor about their own legal obligation.
Record calls for quality/compliance with proper notice.
Refer the account to a third-party agency, provided oversight and standards are met.
Report to credit-information systems/bureaus accurately and fairly.
Enforce legitimate remedies: file a civil collection case; foreclose collateral following lawful process; for banks, set-off against deposits if the contract allows and subject to rules.

Key boundaries: communication must be truthful, proportionate, professional, private, and not excessive.

4) Channel-by-channel boundaries

Phone/SMS/Chat/App
- Identify yourself and the regulated entity you represent.
- Keep communications brief, factual, and respectful.
- Do not spam, auto-dial incessantly, or message at odd hours.
- No group chats with your contacts; no social media tagging.
Workplace
- Avoid contacting the employer; if there is no other address, a notice may be sent to your attention without revealing the debt to others. No “manager briefings.”
Home/Field visits
- Require proper company ID and letter of authority.
- No intrusion, intimidation, or seizure. Visits must be rare, necessary, and respectful.
Social media
- Never used to shame, tag, or publicize the debt. Private messages are still subject to professionalism and privacy limits.

5) Special notes by regulator

A) SEC-supervised LCs/FCs

SEC’s unfair-collection circular (2019) specifically bans shaming tactics common to online lending apps (contact-list blasting, photo shaming, threats).
Violations can lead to fines, suspension, revocation, and criminal referrals when appropriate.
SEC expects clear internal policies, agent training, and auditable records (call logs, scripts, complaint handling).

B) BSP-supervised institutions (banks/credit cards/pawnshops, etc.)

The CCIRL and BSP consumer-protection issuances require fair treatment, truthful disclosure, privacy, and proper oversight of collection agencies.
Credit-card collections: strong guardrails against third-party disclosure, harassment, misrepresentation, and excessive contact.
BSP can order corrective actions, penalties, and restitution; repeat or systemic violations invite escalated enforcement.

6) Your rights (and smart steps) if you’re being harassed

Document everything
- Save screenshots, recordings (if lawful), envelopes, caller IDs, dates/times, and witness accounts.
Send a firm, written directive (keep it polite but clear)
- Direct the collector to:
  - Identify themselves and their principal;
  - Itemize the amount due (principal/interest/fees and legal basis);
  - Use only your chosen channel/time window;
  - Cease contacting third parties;
  - Route future communications through you (or your lawyer).
- Ask for the agency’s DPA contact and complaints officer.
Escalate inside the institution
- File a complaint with the lender’s customer care/compliance unit; demand a written resolution.
Complain to the right regulator
- SEC (for LCs/FCs): report unfair collection and attach evidence.
- BSP (for banks/credit-cards/pawnshops): file via the bank’s Consumer Assistance Mechanism first; then elevate to BSP if unresolved.
- You may also file with the National Privacy Commission for privacy breaches.
Consider legal remedies
- Civil: damages for harassment/abuse; injunction to stop misconduct.
- Criminal: if conduct amounts to grave threats, grave coercion, libel/cyberlibel, unlawful entry, etc.
- For secured loans: challenge illegal repossession or procedurally defective foreclosure.
Know what’s not a crime
- Mere non-payment of a civil debt is not a criminal offense. Threats of jail for that alone are misleading. (Different rules apply if there’s bouncing checks (BP 22) or fraud (estafa) with separate, provable deceit.)

7) Compliance checklist (for lenders & agencies)

Written policy: Clear, regulator-aligned collection conduct policy approved by the board; zero-tolerance for shaming.
Scripts & training: Standardized call scripts and message templates; recurring agent training with testing.
Time-of-day & frequency controls: System limits that bar off-hour and excessive outreach.
Third-party oversight: Contracts with agencies that mirror regulatory prohibitions; monitoring, call audits, and remediation duties.
Data privacy hygiene: No contact-list scraping; least-data use; secure handling; defined retention and deletion timelines.
Complaint handling: A Consumer Assistance Mechanism with SLA-based responses, proper logging, root-cause fixes, and regulator escalation pathways.
Accurate ledgers: Transparent breakdown of principal, interest, penalties, and fees with legal basis; no hidden charges.
Proof-of-debt kit: On request, provide contract, SOA, assignments, and authority to collect.

8) Quick “Can they do that?” matrix

Situation	SEC-covered LCs/FCs	BSP-covered banks/CC issuers
Call you many times late at night	No (unreasonable hours)	No (unreasonable hours)
Tell your boss you owe money	No	No
Post about your debt on Facebook	No	No
Contact your listed “character reference” to find you	Limited (no debt disclosure, one-off)	Limited (same)
Send a demand letter	Yes, professionally	Yes, professionally
File a civil case/foreclose collateral	Yes, with due process	Yes, with due process
Add “collection fees” not in the contract	No	No
Record calls	Yes, with notice and compliance	Yes, with notice and compliance

9) Templates you can use

A) Cease & Clarify Letter (send to the lender/collector)

Subject: Account [Loan/Card No. ______] – Cease Harassment / Direct Communications

I acknowledge my account with [Company]. I will deal with legitimate obligations. However, I object to the following unfair collection practices: [briefly list: late-night calls, contacting my employer, group chats, etc.].

Effective immediately:

Communicate only via [email/number] and [reasonable hours].

Do not contact my employer, co-workers, neighbors, or relatives (other than a co-maker/guarantor for their own obligation).

Identify your collector’s full name, company, and authority in each contact.

Provide within 10 days a breakdown of principal/interest/fees/penalties and the legal/contractual basis for each.

Continued violations will be documented and reported to [SEC/BSP] and other authorities for action under applicable rules.

Sincerely, [Your Name] [Date]

B) Proof-of-Debt Request (use if figures look wrong)

Please provide copies of (a) my signed agreement (and any amendments), (b) current statement of account showing principal/interest/fees/penalties, (c) any assignment of debt or authority to collect, and (d) your privacy notice explaining data use in collections.

10) Frequently asked questions

Q: Can they arrest me for unpaid debt? A: No. Non-payment of a civil debt is not a criminal offense. Arrest threats are abusive and misleading.

Q: Can they talk to my HR or post my photo? A: No. Disclosing your debt to others, or shaming you publicly or online, is prohibited.

Q: What if I actually owe the money? A: You still have the right to dignified, private, and truthful collection. You can negotiate restructuring or settlement without harassment.

Q: May they still sue if I send a “cease” letter? A: Yes. A cease letter does not bar lawful remedies (demand letters, civil suits, foreclosure). It does bar abusive conduct.

Q: What about repossession of a car under a chattel mortgage? A: They cannot seize property by force or in a way that breaches the peace. Lawful enforcement requires proper process (often via court or strictly peaceful voluntary surrender), plus clear accounting of any deficiency.

11) How to decide where to complain (fast flow)

Who is your creditor?

Bank / Credit-card / Pawnshop / EMI → Start with the provider’s Consumer Assistance Mechanism → then BSP if unresolved.
Lending/Financing company (including app-based) → SEC.

Bundle your evidence

Timeline, screenshots/recordings, copies of notices, names/numbers, and your Cease & Clarify Letter.

State the violations

“Unfair collection practices”: threats, shaming, third-party disclosure, unreasonable hours, misrepresentation, unauthorized fees, privacy violations.

12) Final takeaways

You must pay valid debts, but you never have to accept abuse.
SEC and BSP rules converge on one principle: collect fairly, privately, and truthfully—with no intimidation or shaming.
Use written directions, evidence logs, and the right regulator to stop harassment while you work toward a lawful resolution (repayment, restructure, or dispute).

If you want, tell me which type of lender you’re dealing with (bank vs. lending app) and I’ll tailor a one-page complaint draft you can file right away.