The rise of Financial Technology (FinTech) in the Philippines has made credit more accessible to the unbanked. However, this convenience has been overshadowed by the predatory practices of certain Online Lending Apps (OLAs). One of the most pervasive issues is "debt shaming"—the use of social media to harass, intimidate, and publicize the private debts of borrowers to their contacts and the public.

Under Philippine law, these actions are not merely unethical; they are illegal and punishable under various statutes and administrative regulations.

1. Prohibited Collection Practices

The Securities and Exchange Commission (SEC), through Memorandum Circular No. 18, Series of 2019, explicitly prohibits unfair debt collection practices. Lending companies and their third-party service providers are forbidden from:

Public Humiliation: Posting the borrower's name, photo, or debt details on social media (Facebook, Instagram, etc.) or tagging their friends and family.
Threats and Intimidation: Using profane language or threatening physical harm or legal action that they cannot legally take.
Contacting Unauthorized Persons: Reaching out to people in the borrower’s contact list who were not designated as co-makers or references.
Deceit: Misrepresenting themselves as lawyers, court personnel, or police officers.

2. Data Privacy Violations

OLAs often require "permissions" to access a borrower’s contacts, gallery, and social media accounts upon installation. However, the National Privacy Commission (NPC) has ruled that using this data to harass or shame a borrower violates the Data Privacy Act of 2012 (Republic Act No. 10173).

Purpose Limitation: Personal data collected for credit evaluation cannot be repurposed for harassment or public disclosure.
Unauthorized Processing: Accessing a contact list to broadcast a debt is a criminal offense under the Act, potentially leading to imprisonment and heavy fines.
NPC Circular 20-01: This specifically bans OLAs from accessing a borrower’s contact list or photo gallery for the purpose of debt collection.

3. Criminal Liabilities

Beyond administrative fines, OLA agents and owners can face criminal charges under the Revised Penal Code and the Cybercrime Prevention Act of 2012 (Republic Act No. 10175):

Cyber Libel: Publicly and maliciously imputing a vice or defect (like being a "deadbeat" or "scammer") on social media to dishonor a person.
Grave or Light Coercion: Compelling a person to do something (like pay a debt) through violence or intimidation.
Unjust Vexation: Any human conduct that, while not causing physical harm, unjustly annoys or irritates another.

4. Regulatory Protections for Borrowers

The Bangko Sentral ng Pilipinas (BSP) and the SEC have the power to revoke the Certificates of Authority of lending companies found guilty of these practices. Borrowers are protected under:

The Truth in Lending Act (R.A. 3765): Requires full disclosure of interest rates and fees, preventing "hidden" charges often used to trap borrowers in debt cycles.
Consumer Protection Act (R.A. 7394): Protects against deceptive and unfair sales/lending acts.

Legal Remedies for Victims

Victims of OLA harassment on social media should take the following steps to build a legal case:

Document Everything: Take screenshots of social media posts, comments, direct messages, and call logs. Ensure the timestamps and the profile of the harasser are visible.
File a Formal Complaint with the SEC: Use the SEC’s Corporate Governance and Finance Department (CGFD) portal to report the lending app.
Report to the National Privacy Commission (NPC): If the harassment involves data breaches or contact list leaking, file a complaint through the NPC’s online system.
Involve the PNP-ACG or NBI-CCD: For cyber libel or death threats, victims can report directly to the Philippine National Police Anti-Cybercrime Group or the National Bureau of Investigation Cybercrime Division.
Cease and Desist: Borrowers have the right to demand that the OLA stop contacting people not listed as references, citing SEC and NPC regulations.

Summary Table: Relevant Laws and Violations

Law / Regulation	Prohibited Act
SEC MC No. 18 (2019)	Debt shaming, profane language, and unauthorized contact.
R.A. 10173 (Data Privacy Act)	Unauthorized use of contact lists and personal data.
R.A. 10175 (Cybercrime Act)	Cyber libel and online harassment.
R.A. 3765 (Truth in Lending)	Non-disclosure of true loan costs and predatory interest.