The rise of Financial Technology (FinTech) in the Philippines has facilitated easier access to credit through Online Lending Apps (OLAs). However, this convenience has been overshadowed by a surge in "debt shaming" and cyber harassment. When these platforms employ coercive, unfair, or illegal collection practices, borrowers have specific legal avenues for redress.
1. Defining the Offense: Cyber Harassment
Cyber harassment by OLAs typically involves the unauthorized access of a borrower’s contact list and the subsequent blasting of messages to family, friends, or employers. These messages often contain:
- False statements regarding the borrower’s character.
- Threats of physical harm or legal action.
- Profane or abusive language intended to humiliate.
These acts generally violate the Data Privacy Act of 2012 (RA 10173), the Cybercrime Prevention Act of 2012 (RA 10175), and SEC regulations regarding fair collection practices.
2. Key Regulatory Agencies
In the Philippines, three primary government bodies handle complaints against predatory lending apps:
Securities and Exchange Commission (SEC)
The SEC regulates the licensing of lending and financing companies. They enforce SEC Memorandum Circular No. 18 (Series of 2019), which explicitly prohibits unfair debt collection practices, such as:
- Using threat of force or other criminal means to harm the person, reputation, or property of any person.
- Disclosing or threatening to disclose information about a debt which is known to be false.
- Contacting persons in the borrower’s contact list who are not designated as co-makers or guarantors.
National Privacy Commission (NPC)
The NPC handles cases involving "Data Privacy Violations." If an OLA accesses your phone’s contacts, photos, or social media accounts without legitimate purpose or through "reputational kidnapping," they are in violation of RA 10173.
National Bureau of Investigation (NBI) & PNP-ACG
The NBI Cybercrime Division and the Philippine National Police - Anti-Cybercrime Group (PNP-ACG) handle the criminal aspect of harassment, specifically violations of the Cybercrime Prevention Act, including online libel and grave threats.
3. Step-by-Step Filing Process
Step 1: Evidence Preservation
Before the OLA can delete messages or the app is taken down, you must secure the following:
- Screenshots of the harassing text messages or social media posts.
- Call logs and recordings (if possible) of threatening phone calls.
- Proof of unauthorized contact (e.g., statements from friends or colleagues who were messaged).
- App Details: The exact name of the app, the developer, and the company name (often found in the "About" section or Google Play Store/App Store).
Step 2: Verification of SEC Registration
Check the SEC website to see if the OLA is a registered Lending or Financing Company. Many predatory apps operate without a Certificate of Authority (CA). Operating without this certificate is a criminal violation in itself.
Step 3: Filing the Formal Complaint
| Agency | Mode of Filing |
|---|---|
| SEC | Submit a formal complaint to the Corporate Governance and Finance Department (CGFD) via their online portal or email at cgfd_enforcement@sec.gov.ph. |
| NPC | File a "Complaints-Assisted Form" through the NPC’s Data Privacy Complaint Management System (DPCMS) or email complaints@privacy.gov.ph. |
| NBI/PNP | Visit the nearest Cybercrime office to file an Affidavit of Complaint. This is necessary if you intend to pursue criminal charges like Online Libel or Grave Coercion. |
4. Legal Protections and Prohibitions
Under Philippine law, several protections are active:
- Truth in Lending Act: Borrowers must be fully informed of the costs of credit.
- Fair Collection Practices: SEC MC 18 protects borrowers from being contacted at unreasonable hours (typically between 10:00 PM and 6:00 AM) and from the use of insults.
- Right to Erasure: Under the Data Privacy Act, you can demand that the OLA delete your personal data if it was processed unlawfully.
5. Summary of Violations
If an OLA engages in harassment, they may be liable for:
- Unauthorized Processing of Personal Information (RA 10173)
- Online Libel (RA 10175)
- Grave Coercion or Threats (Revised Penal Code)
- Violation of the Lending Company Regulation Act (RA 9474)
Note: Paying the debt does not extinguish the OLA's criminal liability for harassment. Conversely, being harassed does not legally "cancel" the principal debt, but it provides a valid basis for administrative and criminal counter-action against the lender.