In the Philippines, while creditors have the legal right to collect unpaid debts, the methods they employ are strictly regulated. Verbal harassment, intimidation, and the use of profane language by debt collectors are not only unethical but are also legally actionable under various Philippine laws and administrative regulations.

1. Legal Basis: What Constitutes Harassment?

The primary regulation governing the conduct of debt collectors (including banks and third-party collection agencies) is SEC Memorandum Circular No. 18, Series of 2019, and for credit card issuers, BSP Circular No. 454 (as amended by Circular No. 1022).

Under these regulations, "unfair collection practices" involving verbal harassment include:

Threats of Violence: Any threat to use physical force or other criminal means to harm the physical person, reputation, or property of any person.
Obscene or Profane Language: The use of insults, epithets, or derogatory language intended to abuse the hearer or reader.
Disclosure of Debt to Third Parties: Contacting a debtor's friends, family, or colleagues (except for skip tracing or with consent) to shame the debtor or pressure them through social stigma.
Harassing Frequency: Repeatedly calling or messaging at unreasonable hours (typically before 6:00 AM or after 10:00 PM) or with such frequency as to constitute harassment.
False Representation: Falsely claiming to be a lawyer, a court official, or a police officer, or threatening legal action that cannot legally be taken (e.g., "You will be jailed for non-payment of debt," which is generally prohibited under the non-imprisonment clause for debt in the Constitution).

2. Where to File a Complaint

Depending on the nature of the lending institution, complaints should be directed to specific regulatory bodies:

A. Securities and Exchange Commission (SEC)

If the collector represents a Lending Company or a Financing Company (including many online lending apps), the SEC is the primary regulatory body.

Action: File a formal complaint with the SEC’s Enforcement and Investor Protection Department (EIPD).
Basis: Violation of the "Prohibition on Unfair Debt Collection Practices."

B. Bangko Sentral ng Pilipinas (BSP)

If the debt involves a Bank or a Credit Card Issuer, the BSP handles the grievance.

Action: Utilize the BSP Consumer Assistance Mechanism (CAM). You may email their Consumer Protection and Market Conduct Office (CPMCO).

C. National Privacy Commission (NPC)

If the verbal harassment involved the unauthorized use of your contact list or the public "shaming" of your debt on social media.

Action: File a complaint for violation of the Data Privacy Act of 2012.

D. Regular Courts / Prosecutor’s Office

If the harassment falls under criminal acts defined in the Revised Penal Code:

Unjust Vexation: For behavior that causes annoyance, irritation, or mental distress.
Grave or Light Threats: If the collector threatens a specific harm.
Oral Defamation (Slander): If the verbal abuse happens in public or in the presence of others to damage your reputation.

3. Documentary Evidence Needed

To successfully file a complaint, "he-said, she-said" is rarely enough. You must preserve evidence:

Call Logs and Recordings: Timestamps of frequent calls. If you recorded the conversation (noting the legalities of the Anti-Wiretapping Law, though many use this as evidence of a crime), it can be powerful.
Screenshots: Copies of SMS, Viber, or Facebook messages containing the harassing language.
Affidavits: Your written statement (sworn before a notary) and statements from witnesses who heard the verbal abuse.
Demand Letters: Copies of any written communication sent by the agency.

4. Step-by-Step Procedure

Step 1: Cease and Desist Demand

Send a formal letter (or email) to the collection agency and the principal creditor (the bank or lending company). State that their collection methods violate SEC/BSP regulations and demand they stop the harassment immediately.

Step 2: Formal Administrative Complaint

If the behavior continues, draft a formal complaint addressed to the SEC or BSP. Include:

Full name and contact details of the complainant.
Identity of the lending company and the specific collection agency.
A detailed narration of the incidents.
Attached evidence (screenshots, etc.).

Step 3: Mediation

The regulatory body (like the SEC) may summon both parties for a conference. This is often where the creditor is penalized or warned, and the harassment usually stops.

Step 4: Criminal Action (Optional)

Consult with a lawyer or go to the local Public Attorney’s Office (PAO) if you wish to file a criminal case for Unjust Vexation or Slander in the Prosecutor's Office.

5. Key Protections to Remember

Article III, Section 20 of the 1987 Constitution: "No person shall be imprisoned for debt or non-payment of a poll tax."

While you are still civilly liable for the money you owe, you cannot be sent to jail simply because you are poor or unable to pay a personal loan. Debt collectors use the threat of "Estafa" or "BP 22" (Bouncing Checks Law) to intimidate debtors, but these require specific criminal elements (like fraud or issuing a worthless check) that are not present in standard unpaid loan cases.