In recent years, the Philippines has seen a surge in Financial Technology (FinTech) through Online Lending Applications (OLAs). While these platforms provide quick access to credit for many underserved Filipinos, they have also birthed a new era of digital harassment. If you find yourself receiving death threats, being shamed on social media, or having your contacts messaged by a loan app, you are a victim of illegal debt collection practices.

Here is a comprehensive legal guide on your rights and the actions you can take under Philippine law.

1. What Constitutes "Harassment" Under Philippine Law?

The Securities and Exchange Commission (SEC), through Memorandum Circular No. 18 (Series of 2019), explicitly prohibits "unfair debt collection practices." A debt collector is in violation if they engage in:

Threats of Violence: Any threat to use physical force or cause harm to the person, reputation, or property of the borrower or their family.
Obscene or Profane Language: Using insults or foul language to coerce payment.
Disclosure of Information: Threatening to publicize the borrower’s personal information or "shaming" them on social media (e.g., posting them as a "scammer" on Facebook).
False Representation: Claiming to be a lawyer, police officer, or government official, or falsely claiming that a criminal case (like Estafa) has been filed when it hasn't.
Unreasonable Hours: Contacting the borrower before 6:00 AM or after 10:00 PM, unless the borrower agreed to such timing.

2. Data Privacy: The "Contact List" Abuse

One of the most invasive tactics used by rogue OLAs is accessing your phone’s contact list to message your friends, family, and employers.

The National Privacy Commission (NPC) has ruled that accessing a borrower's entire phone directory for the purpose of debt collection is a violation of the Data Privacy Act of 2012 (Republic Act No. 10173).

Unauthorized Processing: Using your personal data for a purpose other than what was agreed upon.
Malicious Disclosure: Revealing your debt status to third parties without your consent is a criminal offense.

3. Debunking the "Estafa" Myth

A common threat from collectors is that you will be jailed for Estafa. In the Philippines, the 1987 Constitution (Article III, Section 20) explicitly states:

"No person shall be imprisoned for debt."

While a lender can file a civil case for "Sum of Money," non-payment of a simple loan is not a criminal offense unless there was actual fraud or a bounced check involved (B.P. 22). Most OLAs avoid civil courts because the legal fees far outweigh the small loan amounts.

4. Steps to Take When Harassed

If you are being harassed, do not panic. Follow these steps to build your defense:

Step A: Document Everything

Do not delete the messages. Take screenshots of:

The threatening text messages and the sender's mobile number.
Emails and social media posts shaming you.
Call logs showing the frequency and time of calls.

Step B: Demand a Cease and Desist

Inform the collector (via text or email) that their tactics violate SEC MC No. 18 and the Data Privacy Act. State clearly: "I am aware of my rights. Stop contacting my third-party contacts and refrain from using profane language, or I will file a formal complaint with the SEC and NPC."

Step C: File a Complaint with the SEC

The SEC is the primary regulator of lending companies.

Check if the OLA is registered on the SEC List of Lending Companies.
Submit a formal complaint through the SEC Corporate Governance and Finance Department (CGFD) via email at cgfd_enforcement@sec.gov.ph.

Step D: File a Complaint with the NPC

If they contacted your friends or posted your photo, file a complaint with the National Privacy Commission. You can use their online "Complaints and Investigation" portal. This can lead to the OLA's app being taken down from the Google Play Store or Apple App Store.

Step E: Report to the PNP-ACG

If the threats involve physical harm or grave threats, visit the Philippine National Police - Anti-Cybercrime Group (PNP-ACG). They specialize in tracking digital harassment and can provide a police report necessary for further legal action.

Summary Table: Where to Complain

Violation Type	Agency to Contact
Unfair Collection Practices (Threats, Harassment)	SEC (Securities and Exchange Commission)
Data Privacy Violations (Contact list access, shaming)	NPC (National Privacy Commission)
Cyber-Libel or Grave Threats	PNP-ACG or NBI-Cybercrime Division

Note: Paying the debt does not excuse the collector's illegal behavior. You can still file complaints for harassment even if you owe money. Protecting your dignity and privacy is a right that no interest rate can buy.

Would you like me to draft a formal Demand Letter to a lending company or a complaint letter for the SEC?