In the Philippines, while creditors have a legal right to collect unpaid debts, the methods they employ are strictly regulated. The rise of aggressive collection tactics—ranging from incessant phone calls to public shaming on social media—has prompted regulatory bodies to establish clear boundaries. If you are experiencing harassment from a debt collector or a lending entity, Philippine law provides specific avenues for redress.
1. Legal Basis and Prohibited Acts
The primary regulation governing collection practices is SEC Memorandum Circular No. 18 (Series of 2019), which builds upon the Philippine Credit Card Industry Regulation Law (Republic Act No. 10870). These regulations define "unfair collection practices."
The following acts are strictly prohibited:
- Threats of Violence: Any threat to use physical force against the person, reputation, or property of the debtor or their family.
- Obscene/Profane Language: Using insults or foul language to intimidate the borrower.
- Public Disclosure: Posting the names of "delinquent" borrowers on social media or informing third parties (employers, neighbors) about the debt, except in specific legal circumstances.
- False Representation: Claiming to be a lawyer, police officer, or government official, or sending documents that mimic legal/court notices when they are not.
- Contact at Unreasonable Hours: Contacting the debtor before 6:00 AM or after 10:00 PM, unless the debtor has given express consent.
2. Identifying the Proper Regulatory Body
The venue for your complaint depends on the type of institution you are dealing with:
| Entity Type | Governing Authority |
|---|---|
| Financing/Lending Companies & Online Lending Apps (OLAs) | Securities and Exchange Commission (SEC) |
| Banks and Credit Card Issuers | Bangko Sentral ng Pilipinas (BSP) |
| Cooperatives | Cooperative Development Authority (CDA) |
3. Step-by-Step Process for Filing a Complaint
Step A: Document the Harassment
Before filing, you must gather concrete evidence. Harassment is often difficult to prove without a paper trail.
- Screenshots: Capture all threatening text messages, emails, or social media posts.
- Call Logs: Keep a record of the frequency and timing of calls.
- Recordings: If possible (and following the Anti-Wiretapping Law, ensuring you notify the other party if required), record the conversation where the harassment occurs.
Step B: Send a Formal Cease and Desist
While not strictly required before a government complaint, sending a formal letter to the lending company’s compliance officer puts them on notice. Demand that they stop the specific prohibited behaviors. This serves as additional evidence of your attempt to resolve the matter.
Step C: File with the SEC (For Lending Apps/Companies)
If the harasser is a lending company or an OLA:
- Visit the SEC Corporate Governance and Finance Department (CGFD) or use the SEC’s online complaint portal.
- Fill out the Formal Complaint Form.
- Attach your evidence and a valid government ID.
- The SEC may issue a "Cease and Desist Order" (CDO) against the company or revoke its Certificate of Authority (CA).
Step D: File with the BSP (For Banks)
For bank-related harassment:
- Use the BSP Online ResponSe (BOB) chatbot via the BSP website or Facebook Messenger.
- Provide the details of the bank, the specific employee involved, and the nature of the harassment.
- The BSP’s Financial Consumer Protection Department will mediate between you and the bank.
4. Criminal and Civil Remedies
Beyond administrative complaints, certain actions by collectors may fall under the Revised Penal Code or the Cybercrime Prevention Act of 2012:
- Grave Threats or Oral Defamation: If the collector threatens physical harm or uses libelous language.
- Unjust Vexation: For persistent, annoying, or distressing conduct that does not fit other categories.
- Violation of Data Privacy: If the collector accessed your phone’s contact list without authorization to shame you to your contacts, you can file a complaint with the National Privacy Commission (NPC) for violations of the Data Privacy Act of 2012.
5. Important Legal Distinction: Debt vs. Harassment
It is critical to understand that filing a complaint for harassment does not extinguish your legal obligation to pay the debt. You can be protected from harassment while still being sued in a civil court for "Sum of Money" if you fail to pay. However, a collector’s illegal behavior can be used as a separate cause of action or a counterclaim.
Note: Under Philippine law, no person shall be imprisoned for non-payment of debt (Article III, Section 20 of the 1987 Constitution). Criminal cases only arise if there is fraud (Estafa) or if the debtor issued "bouncing checks" (B.P. 22). Simple inability to pay a loan is a civil, not a criminal, matter.