Introduction
Online lending apps (OLAs) have exploded in the Philippines since 2017, meeting legitimate demand for quick, small-ticket credit—but also spawning a wave of “debt-shaming,” threats, and privacy abuses that regulators now describe as harassment. This article pulls together every major statute, regulatory issuance, agency decision, bill, and court ruling governing (or soon to govern) such conduct as of 30 April 2025.
1. What harassment looks like in practice
Borrower complaints to the Securities and Exchange Commission (SEC) and National Privacy Commission (NPC) reveal a common playbook:
| Typical tactic | Why regulators call it “harassment” | Key rule violated |
|---|---|---|
| Blast texts or Viber/FB messages to all contacts in the borrower’s phone, calling them a “scammer” | “Public disclosure” of personal data done to shame or coerce payment | SEC MC 18-2019 §1(c); NPC Circular 20-01 §4 (Online Lending Harassment and Excessive Debt Collection Practices, NPC Circular No. 20-01 - National Privacy Commission) |
| Threats of arrest, deportation, or “NBI blacklisting” | False or misleading statements | SEC MC 18 §1(b) (Online Lending Harassment and Excessive Debt Collection Practices) |
| Unreasonable or midnight calls | “Contacting borrowers at unreasonable hours” | SEC MC 18 §1(a) (Online Lending Harassment and Excessive Debt Collection Practices) |
| Posting edited photos on social media | Cyber-libel, unjust vexation, Data Privacy Act breach | RPC Arts. 353-355; RA 10175 §4(c)(4) (REPUBLIC ACT NO. 10173 - The Lawphil Project) |
| Automatic deductions of >30 % “service fee” up-front | Unconscionable interest/charges, fraud | SEC CDO vs WeFund (2021); Civil Code Art 1229 (Excessive Deductions and Harassment by Online Lending Apps Philippines, Stop Debt Collection Harassment - ACCRALAW) |
2. Governing statutes (in force)
| Level | Law / issuance | Core protections against harassment |
|---|---|---|
| Primary licencing | RA 9474 (Lending Company Regulation Act 2007) | All lending companies—traditional or online—must register with SEC; failure = criminal offense. (R.A. 9474 - The Lawphil Project) |
| RA 11765 (Financial Products & Services Consumer Protection Act 2022) | Makes harassment an abusive collection practice; empowers SEC, BSP and IC to impose fines up to ₱2 M per day plus disgorgement. (Republic Act No. 11765 - The Lawphil Project) | |
| RA 11967 (Internet Transactions Act 2023) | Declares online debt collection a digital consumer transaction; DTI may order takedown/geo-blocking of abusive apps. ([ REPUBLIC ACT NO. 11967, December 05, 2023 ] - The Lawphil Project) | |
| Data privacy | RA 10173 (Data Privacy Act 2012) | Unauthorized scraping of contacts, public disclosure of debts = criminal penalties (up to 7 yrs). (REPUBLIC ACT NO. 10173 - The Lawphil Project) |
| NPC Circular 20-01 (2020) + NPC Circular 2022-02 | Explicit ban on accessing borrowers’ phone-contact lists for collection. (NPC Circular No. 20-01 - National Privacy Commission, NPC Circular No. 2022 02 - privacy.gov.ph) | |
| Debt-collection conduct | SEC Memorandum Circular 18-2019 | Lists 9 prohibited collection acts (threats, contact-blasting, profane language, etc.), sets fines & license revocation ladder. (Lending Companies: Avoid Unfair Debt Collection Practices - CloudCFO PH) |
| SEC Memorandum Circular 3-2022 | Caps total cost of credit at 100 % of principal; violations often coincide with harassment. (Excessive Deductions and Harassment by Online Lending Apps Philippines) | |
| Banking sector | BSP Circular 1160-2022 (implements RA 11765 for BSP-supervised entities) | Requires banks and e-wallets to maintain a Consumer Protection Risk Management System that flags abusive 3rd-party collectors. (Coverage of Circular No. 1169 (Circular) - Bangko Sentral ng Pilipinas) |
| General consumer & criminal law | Consumer Act (RA 7394), Cybercrime Act (RA 10175), Revised Penal Code (grave threats, unjust vexation, libel) | Provide fallback civil and criminal causes of action. (Villanueva: Probe unauthorized and unregistered online lending platforms) |
3. Landmark agency decisions & jurisprudence
| Year | Case / Ruling | Take-away |
|---|---|---|
| 2019 | NPC ban on 26 OLAs for debt-shaming | First use of data-processing ban; apps delisted from Google Play. (Online Lending Firm Found Criminally Liable for Violating Data Privacy ...) |
| 2023 | In re Populus Lending (NPC SS 21-008) | Contact-scraping before loan approval violates §§11, 16, 25 DPA; temporary ban affirmed. (IN RE: POPULUS LENDING CORPORATION (PESOPOP) AND ITS RESPONSIBLE OFFICERS, NATIONAL PRIVACY COMMISSION) |
| 2024 | SEC v. Joywin Lending (CDO 23-048) | “Blast text” to 300 contacts = public disclosure; 2nd offense → license revoked. (Harassment from Online Lending App - respicio.ph) |
| 2023 | Spouses Abellera v. PNB (G.R. 248678) | Re-affirmed courts may strike down “unconscionable” rates even without a statutory cap. (Excessive Deductions and Harassment by Online Lending Apps Philippines) |
(As of April 2025 no Supreme Court decision has squarely addressed OLA harassment, but multiple libel, grave-threats and privacy cases are pending.)
4. Bills in Congress (status as of 30 Apr 2025)
| Measure | Key features | Status |
|---|---|---|
| House Bill 6776 / Senate Bill 1366 – “Online Lending Regulation & Penalties Act” | Criminalizes debt-shaming; mandates 10× restitution of unlawful fees; grants NPC/SEC joint takedown power | Passed House 2nd reading (13 Mar 2025); Senate hearings ongoing. (Excessive Deductions and Harassment by Online Lending Apps Philippines) |
| Senate Bill 2882 (Padilla, 2024) | Stiffer penalties vs abusive lenders; vicarious liability for 3rd-party collectors | In Committee on Banks as of Nov 2024. (Sen. Robin's Bill to Punish Abusive Debt Collectors) |
| HB 6772 / SB 1846 – Interest-Rate Cap “Usury Law reboot” | Flat 36 % p.a. ceiling on all private loans (incl. OLAs) | Committee report pending. (Online Loan Harassment and Interest Rate Regulations) |
5. How borrowers can respond
- Document everything: Keep screenshots, call logs, and copies of threatening messages.
- File with the SEC
- E-mail flcd_complaints@sec.gov.ph (Financing & Lending Companies Division) with evidence; include a sworn complaint. (ONLINE LENDING APP HARASSMENT - foi.gov.ph)
- File with the NPC if contacts were scraped or data publicly disclosed. Use the NPC Online Complaints Desk or dataprivacy@privacy.gov.ph. (NPC invites public to a symposium on data subject rights, scope of DPA ...)
- Criminal route: For threats or libel, execute a police blotter then file an affidavit-complaint with the DOJ or the cyber-crime units of the NBI/PNP.
- Civil suit: Under Art. 32 & 33 Civil Code, sue for moral and exemplary damages; request a TRO/Writ of Habeas Data to stop further disclosures.
- App-store takedown: Forward the SEC/NPC cease-and-desist order to Google/Apple for geo-blocking.
6. Compliance checklist for legitimate OLAs
| Compliance item | Source rule |
|---|---|
| No contact-list, SMS or social-media harvesting | NPC Circular 20-01 §4 (NPC Circular No. 20-01 - National Privacy Commission) |
| Collection calls only 8 am–9 pm; no obscene language | SEC MC 18 §1(a)(d) (Online Lending Harassment and Excessive Debt Collection Practices) |
| Accurate disclosure of total cost of credit before loan drawdown | SEC MC 3-2022 §3; RA 11765 §4(g) (Excessive Deductions and Harassment by Online Lending Apps Philippines, Republic Act No. 11765 - The Lawphil Project) |
| Functional in-app grievance channel, 7-day resolution | BSP Circular 1160 §§30-35 (for BSP-entities); SEC Notice 22-03 (for LCs/FCs) (Coverage of Circular No. 1169 (Circular) - Bangko Sentral ng Pilipinas) |
| Annual Consumer Protection Audit | RA 11765 §9; BSP Circular 1160 §54 (Republic Act No. 11765 - The Lawphil Project, Coverage of Circular No. 1169 (Circular) - Bangko Sentral ng Pilipinas) |
7. Looking ahead
Regulatory trajectory: Philippine regulators have moved from case-by-case bans (2019) to bright-line conduct rules (2020-22) and are now pressing for criminal liability and nation-wide interest-rate caps (2024-25 bills). The SEC’s portal of revoked/suspended lending companies already lists more than 555 entities—a figure expected to jump once HB 6776/SB 1366 becomes law. (Home - SEC - Securities and Exchange Commission)
Borrowers therefore have stronger, clearer remedies than ever, while legitimate fintech lenders must invest in privacy-by-design and compliant collection protocols to survive the coming enforcement wave.