Filing Complaints Against Lending Companies in the Philippines

A practical legal guide for borrowers, advocates, and compliance officers

1) Why this matters

Complaints against lending companies often involve abusive collection methods, opaque pricing, unlawful processing of personal data, or operating without the required authority. Philippine law offers multiple avenues—administrative, civil, and criminal—to stop misconduct, obtain redress, and deter repeat violations. This article explains, in Philippine context, how to recognize violations, choose the proper forum, prepare evidence, and file an effective complaint.

2) The legal and regulatory landscape

Key regulators and forums

Securities and Exchange Commission (SEC) – Regulates lending companies (organized under the Lending Company Regulation Act) and financing companies. It issues Certificates of Authority (COA), prescribes disclosure and collection standards, and penalizes unregistered or abusive entities.
Bangko Sentral ng Pilipinas (BSP) – Regulates banks and certain non-bank financial institutions (e.g., pawnshops, EMI’s). If the counterparty is a bank/pawnshop, route the complaint to BSP.
Cooperative Development Authority (CDA) – If the lender is a cooperative, complaints go to the CDA.
National Privacy Commission (NPC) – Handles complaints under the Data Privacy Act (e.g., phone-book scraping, “doxxing,” unauthorized disclosure).
Courts – For civil cases (damages, rescission, small claims) and criminal complaints (e.g., grave threats, libel/cyber-libel, unjust vexation, coercion, estafa, etc.).
Law enforcement – NBI or PNP Anti-Cybercrime Group for harassment, online shaming, or threats; local police for urgent safety concerns.
Local government units (LGUs) – Business permit enforcement (useful when a physical branch harasses debtors).
App stores / platforms – For online lending platforms (OLPs), abusive apps can be reported to have them taken down.

Core statutes and rules commonly invoked

Lending Company Regulation Act and Financing Company Act (registration, COA, compliance).
Truth in Lending Act (clear disclosure of finance charges and effective costs).
Data Privacy Act (lawful processing; purpose limitation; data minimization; security; rights of data subjects).
Revised Penal Code (threats, coercion, slander/libel) and Cybercrime Prevention Act (when done online).
Consumer protection and unfair collection standards issued by the SEC for lending/financing companies.
Anti-Wiretapping Act (avoid illegally recording private communications).
Civil Code (damages for torts/abuses; contract law).
Katarungang Pambarangay: Barangay conciliation does not apply to disputes where a party is a juridical person (e.g., a corporation), so you may proceed directly to the proper forum.

3) Typical violations and red flags

Operating without SEC registration or without a Certificate of Authority (COA).
Unfair debt collection practices, including: threats of violence, public shaming, contacting an excessive number of third parties (e.g., entire contact list), calling employers, or using profane language.
Privacy violations: harvesting phone contacts, sending mass defamatory texts, posting photos/IDs online, or using personal data beyond the stated purpose.
Non-compliant disclosures: hidden fees, misleading “zero interest” ads with inflated charges; failure to state the total cost of credit.
Misrepresentation: pretending to be law enforcement, a court officer, or a government agency; fake “warrants” or “subpoenas.”
Retention and security failures: leaking IDs, selfies, or loan files; data breaches without proper notification.
Harassment: repeated calls at unreasonable hours, contacting references to shame the borrower, or doxxing on social media.
Unlawful collection of payments: forcing post-dated checks beyond agreement, unilateral debits, or refusal to issue official receipts.

4) Evidence: what to collect (and what to avoid)

Gather and preserve:

Identification of the lender (legal name, trade name, app name, branch address, registration/COA number if known).
Contracts: loan agreement, disclosure statement, payment schedule, screenshots of in-app terms, marketing messages.
Communications: SMS, chat, email, call logs; screenshots of threats/shaming posts; voice mails.
Payment proof: receipts, bank/ewallet statements.
Timeline: dates of application, disbursement, due dates, collection attempts, harassment incidents.

Caution on recordings: The Anti-Wiretapping Act generally prohibits recording private conversations without the consent of the parties. Don’t secretly record calls. Instead, keep call logs, save texts/chats, and request written communications.

For privacy cases: Download a copy of the app permissions, data collected, and any evidence the lender accessed/used your contacts or photos.

5) Choosing the right path

Scenario	Best initial forum	Goal
Unregistered lender / no COA	SEC (EIPD/Enforcement)	Stop operations; penalties; app takedown
Abusive collections by lending/financing company	SEC	Administrative sanctions; cease-and-desist
Privacy invasion (contact scraping, doxxing)	NPC	Order to stop processing; deletion/rectification; fines
Defamation, threats, coercion	NBI/PNP and/or Prosecutor	Criminal liability; protective action
Overcharges/hidden fees, rescission, damages	Courts (civil); Small Claims for money disputes within threshold	Refunds, damages
Bank/pawnshop issues	BSP	Supervisory action, consumer assistance
Cooperative lender	CDA	Administrative action

You can pursue multiple remedies in parallel (e.g., SEC + NPC + law enforcement), as they address different legal interests.

6) How to file with key forums

A) Filing with the SEC (lending/financing companies)

When: Unregistered operations; unfair debt collection; misleading ads; refusal to issue receipts; other regulatory breaches.

What to submit:

Complaint letter stating parties, facts in chronological order, and relief sought.
Proof the entity is a lending/financing company (name, app/branch details; any COA/registration numbers if available).
Evidence: contracts, screenshots, messages, receipts.
Your government ID and contact information.

Relief the SEC may grant: cease-and-desist orders, administrative fines, revocation/suspension of COA, app delisting coordination, referrals for criminal prosecution (e.g., for unregistered lending).

B) Filing with the NPC (privacy complaints)

When: Unauthorized access/processing, contact list scraping, public disclosure of personal data, failure to honor data subject requests, data breach.

What to submit:

Verification statement (that you are the data subject/authorized representative), complaint narrative, copies of privacy-related evidence, screenshots of consents/permissions, and any correspondence with the company’s Data Protection Officer (DPO).
Identify the rights violated (e.g., right to be informed, object, erasure, damages) and the lawful basis claimed (if any).

Possible outcomes: orders to stop processing/erase data, directions to notify third parties, administrative fines, compliance audits.

C) Criminal complaints (Prosecutor’s Office; NBI/PNP)

When: Grave threats, coercion, libel/cyber-libel, estafa, falsification, stalking, or other crimes.

What to submit:

Sworn complaint-affidavit detailing the offense elements, plus supporting evidence.
Witness affidavits; certified screenshots; links/URLs; device forensics as needed.

Urgent steps: If there is immediate danger, make a police blotter and seek assistance from the Anti-Cybercrime Group for takedown preservation and evidence capture.

D) Civil actions (including small claims)

When: You seek refunds, damages, or contract remedies. Small claims suits are streamlined and cost-effective for money claims under the Supreme Court’s current threshold (check the latest amount before filing).

What to submit:

Statement of claim, documentary evidence (contracts, receipts, messages), and identification.
No lawyers are required in small claims, but good documentation is key.

7) Drafting a strong complaint (any forum)

Caption and parties – Identify the company by its full legal name (if known) and trading/app name.
Jurisdiction – Briefly explain why the regulator/court has authority.
Statement of facts – Clear, chronological timeline; keep emotion out; include dates and channels (call, SMS, app).
Violations – Tie facts to rules (e.g., unfair collection, privacy breach, missing disclosures).
Relief sought – E.g., cease-and-desist; deletion of data; refund; administrative fines; damages.
Evidence list – Enumerate and label exhibits.
Verification and signatures – Sworn statements where required.

8) Special issues with Online Lending Platforms (OLPs)

Deceptive identities: Some OLPs use multiple app names for the same entity. Capture app store pages and developer information.
Contact scraping & doxxing: Classic privacy violations—go to the NPC and also complain to app stores to request delisting.
Offshore operators: SEC can still act on OLPs targeting Philippine residents; law enforcement can coordinate for cyber investigations.
Multiple “affiliates” collecting the same debt**:** Demand a debt validation and proof of assignment; complain when third parties have no lawful basis to process or collect.

9) Borrower rights and lender limitations

Right to clear pricing: total cost of credit and all fees must be disclosed plainly.
Right to dignity and privacy: collectors may not threaten, shame, or disclose debts to unrelated persons without lawful basis.
Right to receive receipts and statements.
Right to data protection: access, correction, erasure (where applicable), objection to processing, and to lodge a complaint with the NPC.
No impersonation: collectors cannot pose as public officials or threaten non-existent “warrants.”

10) Practical playbook (step-by-step)

Confirm the counterparty type (SEC-regulated lending/financing company? bank/pawnshop? cooperative?).
Secure your evidence (see checklist). Back up files.
Write to the company (optional but helpful): demand compliance, ask for their DPO details, and set a deadline.
File with the proper regulator(s):
- SEC for regulatory violations/unfair collection/unregistered operations.
- NPC for privacy violations.
- Law enforcement/Prosecutor for crimes.
- Court/small claims for monetary recovery.
Parallel actions: If harassed online, ask platforms to remove content and preserve evidence.
Protect yourself: Block abusive numbers; avoid sharing additional contacts/IDs; change app permissions; consider a written cease-and-desist letter.
Track everything: Keep a log of submissions, ticket numbers, and responses.

11) Evidence checklist (copy-and-use)

☐ Valid ID(s)
☐ Loan contract and disclosure statement
☐ Payment schedule and receipts
☐ Screenshots of app permissions/consents
☐ Screenshots of abusive messages/calls/posts (with timestamps)
☐ List of phone numbers/email addresses used by collectors
☐ Proof of financial prejudice (fees deducted, unexpected charges)
☐ Timeline of events (dates, times, channels)
☐ Correspondence with the lender/DPO
☐ Any breach notifications or privacy requests made

12) Sample complaint outline (SEC-style)

Subject: Complaint vs. [Full Legal Name of Lender] / [App Name] for Unfair Collection Practices and Regulatory Violations Complainant: [Name, Address, Contact] Respondent: [Company name/Trade or App name; address; COA/Registration No. if known]

I. Jurisdiction – Respondent is a lending/financing company operating in the Philippines; the acts complained of fall under SEC supervision. II. Facts – (Chronological narrative with dates; attach labeled exhibits.) III. Violations – (a) Unfair debt collection (threats/public shaming); (b) Misrepresentation; (c) Non-compliant disclosures; (d) Other breaches. IV. Evidence – List Exhibits A–F (contracts, screenshots, receipts). V. Reliefs Sought – Cease-and-desist; administrative fines; directive to correct practices; referral to law enforcement; any other relief. Verification and Signature – (Sworn statement, date, place.)

(Adapt similarly for NPC—swap “Jurisdiction” and “Violations” to reference the Data Privacy Act and data subject rights.)

13) Frequently asked questions

Do I have to go to the barangay first? No. Disputes involving a corporation (the lender) are outside barangay conciliation.

Can I sue and also complain to regulators? Yes. Administrative, civil, and criminal remedies can proceed independently.

Is outrageous interest automatically illegal? The usury ceilings were suspended decades ago. However, lenders must still comply with disclosure rules and prohibitions against unconscionable, misleading, or abusive practices. Excessive fees may support civil or administrative relief.

Can they contact my employer or my phone contacts? Generally no, unless there is a lawful basis and necessity. Public shaming and contact-harvesting typically violate privacy and fair-collection standards.

What if the app is foreign? If it targets Philippine users, regulators can act, including coordination for delisting and enforcement.

14) Sensible timelines and expectations

Regulatory action focuses on stopping harmful practices and penalizing non-compliance; it may not award damages to you personally.
Civil cases can obtain refunds and damages but take time and effort.
Criminal complaints aim at punishment and deterrence; immediate safety issues should go to police first.

15) Final tips

Keep communications in writing.
Never send additional contacts/photos “for verification” beyond what’s necessary.
Do not sign blank forms or allow remote access apps.
If collectors become threatening, prioritize safety: document, seek help, and report to authorities.
Consider consulting a Philippine lawyer for tailored advice, especially for court filings or when significant sums or reputational harm are involved.

This guide is for general information only and is not a substitute for legal advice specific to your situation.