The explosive growth of online lending applications in the Philippines has made credit accessible to millions who were previously excluded from traditional banking. However, this convenience has come at a steep cost for many borrowers: aggressive, humiliating, and often illegal debt collection practices. Threats of public shaming, unauthorized mass messaging to contacts, doctored obscene photos, death threats, and harassment at odd hours have become disturbingly common. These tactics are not just unethical—they are punishable under multiple Philippine laws.

This article comprehensively explains the legal protections available to borrowers who are being harassed by online lending apps, whether the app is SEC-registered or (more commonly in harassment cases) unregistered and operating illegally.

1. Legal Status of the Lending App Matters Greatly

Unregistered Online Lending Apps

Any entity engaged in lending as a business in the Philippines must register with the Securities and Exchange Commission (SEC) as either a lending company (under Republic Act No. 9474) or a financing company (under Republic Act No. 8556). Online lending platforms fall under these laws.

Operating without SEC registration is illegal. The contract is void ab initio for being contrary to law (Civil Code, Art. 1409). In plain language: you do not legally owe the unregistered app anything—not even the principal. Courts have consistently ruled that loans from unregistered lenders are unenforceable (see repeated SEC pronouncements and cases such as SEC-OGC Opinion No. 20-09 and related jurisprudence).

Therefore, if the app is unregistered (check the current SEC list at https://www.sec.gov.ph/lending-companies-and-financing-companies-2/list-of-registered-lending-companies/), you may legally ignore their demands entirely and focus solely on reporting the harassment.

Registered Lending/Financing Companies

Even SEC-registered entities (e.g., JuanHand, Tala, Cashalo, UnaCash, etc.) are strictly prohibited from using abusive collection practices. They are bound by:

SEC Memorandum Circular No. 18, s. 2019 (Guidelines on Online Lending Platforms)
SEC Memorandum Circular No. 19, s. 2021 (Fair Debt Collection Guidelines, which explicitly adopts most of the prohibited acts listed below)
The general requirement to observe good morals and public policy

Violation can lead to fines, suspension, or revocation of their Certificate of Authority.

2. What Constitutes Illegal Harassment? (Prohibited Acts)

The following collection tactics are expressly illegal, whether the lender is registered or not:

Prohibited Act	Legal Basis
Sending threats of violence, death, or physical harm	Revised Penal Code Art. 282 (Grave Threats), Art. 283 (Light Threats) – punishable by imprisonment
Using obscene, profane, or insulting language	RPC Art. 287 (Light Coercion/Unjust Vexation), SEC Fair Debt Collection Guidelines
Publicly shaming the borrower (posting names/photos on social media, “wanted” posters, doctored nude/obscene images)	RA 10175 (Cybercrime Prevention Act) – Cyberlibel; RPC Art. 353 (Libel); RA 9995 (Anti-Photo and Video Voyeurism Act if doctored nudes)
Contacting family, friends, employer, or any third party to shame or pressure the borrower (mass messaging contacts)	RA 10173 Data Privacy Act §§ 25–26 (Unauthorized Processing & Disclosure of Personal Data); SEC prohibits contact with third parties except for address verification and only after exhausting direct contact
Accessing phone contacts/gallery without valid, freely given consent	RA 10173 § 16 (Lawful Processing Requirements); NPC Circular 2020-03 explicitly states that requiring contact access as a condition for the loan is not valid consent
Calling or messaging between 10:00 p.m. and 6:00 a.m.	SEC Fair Debt Collection Guidelines; considered harassment under unjust vexation
Threatening arrest or imprisonment for non-payment of a purely civil debt	RPC Art. 283 (Light Threats); there is no debtor’s prison in the Philippines for ordinary loans
Threatening to file fabricated criminal cases (e.g., estafa) when no deceit was involved	RPC Art. 184 (Offering False Testimony) or Art. 171 (Falsification); also constitutes extortion
Adding unauthorized charges, penalties, or “renewal fees” that make the cost exorbitant	RA 3765 Truth in Lending Act; Civil Code Art. 1308 (mutuality) and Art. 1421 (iniquitous contracts may be voided)

3. Key Laws Protecting Borrowers

A. Republic Act No. 10173 – Data Privacy Act of 2012

The single most powerful weapon against abusive lending apps.

Requiring access to contacts, SMS, gallery as a condition for the loan is coercive consent and therefore invalid (NPC Advisory Opinion No. 2020-048 and NPC Circular 2022-01).
Sending messages to your contacts disclosing your alleged debt is unauthorized processing of both your personal data and your contacts’ personal data – a serious violation punishable by up to 6 years imprisonment and multi-million-peso fines.
The National Privacy Commission (NPC) has issued dozens of Cease-and-Desist Orders against lending apps and has imposed fines ranging from ₱100,000 to ₱4,000,000.

B. Republic Act No. 10175 – Cybercrime Prevention Act of 2012

Cyberlibel carries heavier penalties than ordinary libel (prision mayor vs. prision correccional). Posting your name/photo with derogatory text is almost always cyberlibel.

C. Revised Penal Code Provisions Commonly Used

Grave Threats (Art. 282) – up to 6 years
Light Threats (Art. 283) – arresto mayor
Unjust Vexation (Art. 287 par. 2) – arresto menor or fine
Oral Defamation/Slander (Art. 358)

These are public crimes – you can file directly with the prosecutor even without a lawyer.

D. Republic Act No. 7394 – Consumer Act of the Philippines

Prohibits deceptive and unconscionable sales acts or practices.

E. Civil Code Provisions for Damages

Even if no criminal case prospers, you can sue for:

Moral damages (Art. 2219[7] – for acts contrary to morals)
Exemplary damages (Art. 2229)
Attorney’s fees (Art. 2208)

Awards in successful harassment suits against lending apps have ranged from ₱50,000 to ₱500,000 in moral/exemplary damages (see RTC decisions in Quezon City, Manila, and Cebu in 2022–2025).

4. Step-by-Step Guide: What to Do If You Are Being Harassed

Document everything
Take screenshots (include time/date), record calls if possible (one-party consent is allowed when you are a participant and the recording is for evidence of a crime – prevailing jurisprudence), save messages.
Send a formal demand letter (optional but helpful)
Inform the app that their practices violate specific laws and demand they cease immediately and delete your data.
File simultaneous complaints (recommended – multiple agencies can act faster):

a. National Privacy Commission (NPC) – www.privacy.gov.ph/complaints
Fastest for stopping mass messaging to contacts. NPC can issue CDO within days.

b. Securities and Exchange Commission (SEC) – https://www.sec.gov.ph/online-complaint-form/
For unregistered apps or violations by registered ones. SEC can revoke licenses.

c. PNP Anti-Cybercrime Group (PNP-ACG) or NBI Cybercrime Division
For threats, cyberlibel, doctored obscene photos.

d. Office of the City/Provincial Prosecutor
File criminal complaints for threats, unjust vexation, grave coercion, cyberlibel.

e. Department of Trade and Industry (DTI) – for consumer protection violations.
File a civil case for damages if the harassment was severe (recommended when moral shock, wounded feelings, or job loss occurred).
Block the numbers and report the app on Google Play Store/Apple App Store (mass reports often lead to removal).

5. Preventive Measures Every Borrower Should Take

Borrow only from SEC-registered platforms (current list: https://www.sec.gov.ph/lending-companies-and-financing-companies-2/)
Never grant access to contacts, SMS, or gallery. If the app requires it, it is almost certainly predatory.
Read the Data Privacy Consent clause carefully. If it says they can message your contacts, do not proceed.
Use a secondary phone or virtual number for loan applications when possible.
Document the disclosed interest rate and fees. If the effective rate exceeds 100–200% per annum, it may still be challenged as unconscionable even though usury is suspended (Supreme Court has reduced rates in Medel v. CA, G.R. No. 131622, and subsequent cases).

Conclusion

Harassment by online lending apps is not just “part of borrowing”—it is criminal, actionable, and increasingly being punished by Philippine authorities. The combination of the Data Privacy Act, Cybercrime Law, Revised Penal Code, and SEC regulations gives borrowers powerful tools to stop the abuse and obtain compensation.

You are not powerless. Document the harassment, file complaints with NPC and SEC immediately, and pursue criminal and civil remedies. The tide has turned: in 2023–2025 alone, the NPC and SEC shut down or fined hundreds of abusive lending apps, and courts awarded substantial damages to victims.

Know your rights. Exercise them without fear. The law is on your side.