The rise of Financial Technology (FinTech) in the Philippines has provided millions of Filipinos with accessible credit. However, this digital shift has also birthed a predatory ecosystem of illegal Online Lending Applications (OLAs). These entities often engage in "online lending scams," characterized by usurious interest rates, deceptive terms, and—most severely—harassment and "debt shaming."

If you or someone you know is a victim of these practices, the Philippine legal framework provides several avenues for redress. This article outlines the step-by-step process of filing a formal complaint against such entities.

1. Identify the Violation

Before filing a complaint, it is essential to categorize the nature of the offense. Common violations committed by illegal OLAs include:

Violations of the Truth in Lending Act (R.A. 3765): Failure to disclose the true cost of credit, including interest rates, service fees, and penalties before the transaction.
Violations of the Cybercrime Prevention Act (R.A. 10175): Engaging in "cyber-libel" or the unauthorized access of a borrower’s contact list to send harassing messages.
Violations of the Data Privacy Act (R.A. 10173): Unauthorized processing and sharing of personal sensitive information to third parties or the public for the purpose of shaming the debtor.
Unfair Debt Collection Practices: As defined by SEC Memorandum Circular No. 18 (Series of 2019), which prohibits the use of threats, profanity, and the disclosure of the debt to the borrower's contacts.

2. Secure and Preserve Evidence

In any legal proceeding, documentation is paramount. Victims must secure the following:

Screenshots: Capture the loan terms, the app’s interface, and the advertisements that led you to the service.
Communication Logs: Save all text messages, emails, and recordings of phone calls involving threats or harassment.
Transaction Receipts: Keep copies of loan disbursements and any payments made through e-wallets or bank transfers.
Contact Information: Note the name of the OLA and, if possible, its corporate name (often found in the "About" or "Terms" section).

3. Jurisdiction and Where to File

Depending on the nature of the scam, complaints should be directed to specific government agencies:

A. Securities and Exchange Commission (SEC)

The SEC is the primary regulator of lending and financing companies. If an OLA is operating without a Certificate of Authority (CA), they are operating illegally.

Action: Check the SEC website for the "List of Lending Companies with Certificate of Authority."
Filing: Submit a formal complaint to the SEC Enforcement and Investor Protection Department (EIPD) via email at epd@sec.gov.ph.

B. National Privacy Commission (NPC)

If the OLA contacted people in your phone book or posted your personal details on social media, they violated data privacy laws.

Action: The NPC handles "Debt Shaming" cases.
Filing: File a complaint through the NPC’s Online Complaint Update System (OCUS) or email complaints@privacy.gov.ph.

C. National Bureau of Investigation (NBI) or PNP-ACG

For criminal acts such as grave threats, harassment, or online libel, the police are the appropriate authorities.

Action: Visit the NBI Cybercrime Division or the Philippine National Police - Anti-Cybercrime Group (PNP-ACG).
Filing: You may file a "walk-in" complaint at their respective headquarters in Quezon City or Manila.

D. Bangko Sentral ng Pilipinas (BSP)

If the OLA is owned or operated by a traditional bank or an e-money issuer (EMI) regulated by the BSP.

Filing: Use the BSP Consumer Assistance Mechanism via their website or the "BOB" (BSP Online Buddy) chatbot.

4. Drafting the Complaint

A formal complaint should be concise and factual. It typically requires:

Full Name and Contact Details of the complainant.
Identity of the Respondent: Name of the OLA and the corporate entity.
Statement of Facts: A chronological account of the events—from the loan application to the specific instances of harassment or fraud.
Prayer/Relief: What you want the agency to do (e.g., "Cease and Desist" the OLA operations, or delete your personal data).

5. Important Legal Remedies

Under SEC Memorandum Circular No. 18, victims can seek the suspension or revocation of the OLA’s license to operate. Furthermore, once a complaint is formalized, it serves as a legal shield if the OLA attempts to file malicious civil cases against the borrower.

Note: Being a victim of a scam does not automatically extinguish the principal debt if the OLA is a legitimate, licensed entity. However, the manner of collection and the illegality of interest rates can be legally contested to significantly reduce or void the penalties and interest.