How to File a Complaint Against a Financing Company for Fraud or Unfair Practices (Philippines)

This is practical legal information for the Philippines, not legal advice. If your situation is urgent or complex, consult a Philippine lawyer.

Quick Snapshot

Primary regulator: Securities and Exchange Commission (SEC) for financing and lending companies
Key laws:
- Financing Company Act of 1998 (R.A. 8556)
- Financial Consumer Protection Act of 2022 (R.A. 11765)
- Data Privacy Act of 2012 (R.A. 10173)
- Revised Penal Code (e.g., estafa), Civil Code (unconscionable interest, abusive conduct)
Other venues: National Privacy Commission (NPC) for doxxing/contact-harvesting, NBI/PNP for criminal fraud, courts for civil claims (including Small Claims), barangay conciliation generally not required if a corporation is involved.

Who You Can Complain To (and When)

The company itself (Internal Dispute Resolution / “IDR”) R.A. 11765 requires supervised financial institutions (including SEC-regulated financing/lending companies) to maintain a complaints-handling process. Start here unless there’s an immediate threat or obvious illegality.
Securities and Exchange Commission (SEC) For unfair debt collection, misrepresentation, hidden/illegal fees, overcharging, unlicensed operations, and other violations of R.A. 8556/R.A. 11765 and SEC rules. The SEC can investigate, fine, suspend/revoke licenses, and issue cease-and-desist orders. It may also order restitution under the FCP Act.
National Privacy Commission (NPC) If the company/app harvests your contacts, broadcasts/shames you, or misuses personal data—common in abusive online lending. NPC can order cease-and-desist, erasure, and penalties under the Data Privacy Act.
Law enforcement / Prosecutor (NBI, PNP ACG, City Prosecutor) For criminal acts (e.g., estafa, computer-related offenses, identity theft). You’ll submit a complaint-affidavit and evidence; a criminal case is separate from an SEC case.
Courts (Civil actions) For rescission, refunds, damages, or to contest unconscionable interest/fees (Philippine courts have repeatedly voided/trimmed excessive rates and penalties). You may use the Small Claims procedure (no lawyers required) for money claims up to ₱1,000,000 (as currently amended).

Note on barangay conciliation: The Katarungang Pambarangay process generally covers disputes between natural persons in the same city/municipality. If the other party is a corporation (e.g., a financing company), prior barangay conciliation is typically not required.

“Financing Company” vs “Lending Company”

Financing companies (R.A. 8556): Engage in credit facilities such as leasing, factoring, commercial financing, and other forms of asset-based financing.
Lending companies (R.A. 9474): Primarily extend loans sourced from their own funds.

If you’re unsure which yours is, check the SEC registration and whether it holds a Certificate of Authority to operate as a financing or lending company. Unregistered or unlicensed entities should be reported to the SEC immediately.

What Counts as “Fraud or Unfair Practices”

Unfair debt collection: Harassment, threats, contacting your employer or contacts, public shaming, doxxing, false legal threats.
Data abuses: Contact-harvesting, excessive data access by apps, sharing your debt status to third parties.
Misrepresentation: False advertising, bait-and-switch, non-disclosure of key terms.
Unlawful/hidden fees: Charges not in your contract; “processing,” “penalty,” “collection,” or “renewal” fees that weren’t clearly agreed in writing.
Unconscionable interest/penalties: Courts may reduce/void excessive rates and liquidated damages. Also, no interest is due unless expressly stipulated in writing (Civil Code).
Operating without SEC authority: Using a shell company, app, or alias without proper registration/licensing.

Your Rights (Core Legal Anchors)

Right to clear, fair, and truthful disclosure of terms, fees, risks (R.A. 11765).
Right to an IDR process and to elevate unresolved complaints to the regulator (SEC for financing/lending companies).
Right to data privacy: Lawful, proportional, transparent processing; to access/rectify; to object/erasure; to file a complaint with NPC (R.A. 10173).
Right against unconscionable interest/penalties and abusive conduct (Civil Code Arts. 19, 20, 21; jurisprudence).
Right to restitution/compensation ordered by regulators/courts when warranted.

Build Your Case: Evidence Checklist

Gather early and keep organized folders:

Identity & authority: Valid ID; if filing for a business, board resolution/SPA.
Contracts & disclosures: Loan/lease agreement, schedules, fee tables, addenda, receipts, chattel mortgage/pawn docs if any.
Payment proof: Official receipts, bank screenshots, transaction logs.
Communications: Emails, texts, in-app messages, letters, demand letters.
- Tip: Avoid illegal recordings. The Anti-Wiretapping Law generally requires consent to record private conversations. Keep call logs, voicemails, and written communications instead.
Harassment evidence: Screenshots of shaming messages, threats, posts; list of dates/times callers contacted you/your references.
Data privacy proof: App permissions, screenshots of contact-harvesting prompts, third-party messages referencing your debt.
Regulatory status: Copies of SEC registration and Certificate of Authority (if you have them).
Damages: Lost wages (e.g., employer complaints), emotional distress indicators, out-of-pocket costs.

Step-by-Step: How to Complain

Step 1: Use the Company’s Internal Dispute Resolution (IDR)

Write a formal complaint (see template below).
Ask for a case/reference number.
Request specific remedies (e.g., fee reversal, recalculation, stop harassment, data deletion).
Keep proof of delivery and any acknowledgment.
Track their timeline. If unresolved or the response is inadequate, proceed to Step 2.

If there is ongoing harassment, data misuse, or illegal operations, you may simultaneously escalate to regulators (SEC/NPC) and, if needed, law enforcement.

Step 2: File an SEC Complaint (Administrative)

What to file:

Complaint-Affidavit (sworn statement) narrating facts, violations, and relief sought.
Annexes: All evidence above, arranged and labeled.
IDs and authority docs.

What the SEC can do: Investigate, conduct hearings, issue cease-and-desist orders, fine, suspend/revoke licenses, order restitution, and refer criminal violations to prosecutors.

Step 3: File an NPC Complaint (If Privacy Is Involved)

Submit a Narrative/Complaint-Affidavit detailing data abuses (contact-harvesting, shaming, unauthorized disclosures).
Ask for cease-and-desist, erasure, sanctions, and coordination with SEC.

Step 4: Consider Criminal Remedies

For fraud/estafa or cyber-related offenses (e.g., threats, identity theft), file a criminal complaint with the City/Provincial Prosecutor, NBI, or PNP Anti-Cybercrime Group. Attach evidence and sworn statements.

Step 5: Consider Civil Remedies (including Small Claims)

Seek refunds, damages, rescission, or a declaration that interest/penalties are unconscionable.
Use Small Claims (currently up to ₱1,000,000 for money claims) for speed and lower costs; lawyers not required.
Venue generally lies where you or the defendant resides or where the cause of action arose; check the latest Rules of Court and Small Claims rules.

Practical Issues & Pro Tips

Verify licensing: An entity lacking an SEC Certificate of Authority is a red flag.
Interest & fees: Even though usury ceilings were long suspended, courts can and do strike down unconscionable rates/penalties and reduce liquidated damages. No written agreement = no interest.
Collateral & repossession: For chattel-mortgaged assets, lenders can foreclose, but procedures (notice, public auction) apply under the Chattel Mortgage Law; “self-help” must not breach the peace. Contest irregular foreclosures in court.
Arbitration clauses: Many finance contracts include arbitration. You can still complain to regulators; arbitration affects how civil disputes are resolved.
Keep everything: Don’t delete apps/messages until advised; export data/screenshots first.
Protect your contacts: If an app asks for contacts/storage/phone permissions, deny them and document the request.
Demand letters: A clear, polite cease-and-desist letter often curbs harassment and fixes miscomputations early.

Templates (Copy, Edit, and Use)

1) Complaint to the Financing Company (IDR)

[Date]

Customer Assistance / Complaints Unit
[Financing Company Name]
[Address or Email]

Subject: Complaint re [Account No./Loan No.] – Fraud/Unfair Practices

I am [Your Name], borrower under [Contract/Loan No.] dated [date]. I am filing a complaint regarding the following:

1. Facts: [Brief timeline with dates and amounts]
2. Issues: [e.g., undisclosed fees; harassment; misrepresentation; data misuse; overcharge]
3. Violations: [R.A. 11765; R.A. 8556; Data Privacy Act; Civil Code on unconscionable interest/penalties]
4. Evidence: [List annexes: Contract, receipts, screenshots, messages, logs]
5. Relief sought:
   - Stop all harassment and contact with my employer/contacts;
   - Provide a full itemized computation and remove unlawful/undisclosed charges;
   - Recalculate interest and penalties to reasonable levels;
   - Delete unlawfully collected personal data and confirm in writing;
   - [Refund ₱____ / correct balance / halt collection pending review], and
   - Provide a written resolution and case/reference number.

Please acknowledge within a reasonable period and resolve this complaint promptly. I reserve my rights to file with the SEC/NPC and to pursue civil/criminal remedies.

Sincerely,
[Signature over Printed Name]
[Address, Email, Mobile]
[Valid ID #]

2) SEC Complaint-Affidavit (Outline)

REPUBLIC OF THE PHILIPPINES )
CITY OF ___________        ) S.S.

COMPLAINT-AFFIDAVIT

I, [Name], Filipino, of legal age, with address at [address], after having been duly sworn, state:

1. Parties and capacity (borrower; respondent is a financing company).
2. Facts and timeline (dates, amounts, key communications).
3. Violations alleged (R.A. 8556; R.A. 11765; SEC rules on unfair collection, disclosure, licensing).
4. Evidence (Annexes A–__): contracts, receipts, screenshots, messages, call logs, etc.
5. Relief: investigation; cease-and-desist; fines; license suspension/revocation; restitution/refund; coordination with NPC for data abuses.

I attest the facts herein are true and correct.

[Signature]
Affiant

SUBSCRIBED AND SWORN to before me this __ day of ________, 20__, affiant exhibiting [ID].
[Notary details]

3) NPC Privacy Complaint (Outline)

[Date]

The National Privacy Commission
[Address/Email]

Subject: Complaint under the Data Privacy Act vs. [Company/App]

Facts: [Contact-harvesting; shaming; unauthorized disclosures with dates/screenshots]
Data subjects affected: [You, your contacts if any]
Violations: [Lawful basis; transparency; proportionality; data minimization; confidentiality breaches]
Relief: Cease-and-desist; erasure; administrative penalties; coordination with SEC.

[Signature, contact details]

4) Cease-and-Desist (Harassment/Doxxing)

[Date]

To: [Financing Company/Collector]

You are directed to CEASE AND DESIST from (a) contacting my employer/contacts, (b) shaming or threatening me, and (c) processing/disclosing my personal data beyond lawful purposes.

Your acts violate R.A. 11765, the Data Privacy Act, and SEC rules on unfair collection. All communications must be in writing to [your email]. Non-compliance will be reported to the SEC and NPC and pursued in court.

[Signature]

Remedies You Can Ask For

Administrative (SEC/NPC): Cease-and-desist; license suspension/revocation; fines; restitution; erasure of unlawfully processed data.
Civil: Refunds, recalculation, damages (moral/exemplary/attorney’s fees), rescission, declaration that interest/penalties are unconscionable.
Criminal: Estafa and related offenses; penalties set by law upon conviction.

Frequently Asked Questions

Q: The company keeps calling my boss and coworkers. Is that allowed? Generally no. Harassment and shaming are prohibited; complain internally, then SEC (unfair collection) and NPC (privacy). Send a cease-and-desist letter and keep evidence.

Q: The app demanded access to my contacts and photos. That’s likely excessive for loan servicing. Deny permissions, take screenshots, and complain to NPC (and SEC if used to harass/collect).

Q: There was no interest rate in the contract, but they’re charging interest. Under the Civil Code, no interest is due unless expressly stipulated in writing. Dispute in writing; escalate to SEC and consider a civil action.

Q: The interest is sky-high—can a court reduce it? Yes. Courts can strike down unconscionable interest and penalties and reduce liquidated damages.

Q: Do I have to go to the barangay first? Usually no when the respondent is a corporation (e.g., a financing company).

Q: Can I be jailed for non-payment? No imprisonment for debt in civil cases. But fraud or criminal violations are different; seek legal advice if accused.

Clean, Persuasive Complaint Writing Tips

Be chronological and specific (dates, amounts, who said what).
Use headers and annex labels so reviewers can navigate quickly.
Ask for clear, measurable remedies (e.g., “reverse ₱3,500 charge,” “delete all contact data,” “send corrected computation”).
Avoid emotional language; stick to facts and law.
Always request a written response and keep receipt stamps or email timestamps.

Final Checklist

Identified correct regulator (SEC) and any privacy angle (NPC)
Assembled contracts, receipts, logs, screenshots
Sent IDR complaint and obtained reference number
Prepared sworn statements and organized annexes
Filed SEC complaint; filed NPC complaint if data abuses
Considered criminal and/or civil actions (Small Claims if applicable)
Preserved all evidence and communications

If you want, tell me the specifics (what happened, dates, amounts, and what you want fixed), and I can draft tailored versions of the letters/affidavits above in one go.