Introduction

In the Philippines, the rapid growth of online lending platforms has provided convenient access to credit for many individuals, particularly those underserved by traditional banks. However, this convenience has been marred by widespread reports of abusive debt collection practices, including harassment, threats, and unauthorized use of personal data. Harassing lending companies often employ tactics such as incessant calls, text messages, public shaming on social media, or contacting family and employers without consent, which violate borrowers' rights.

The Securities and Exchange Commission (SEC) is the primary regulatory body overseeing lending companies under Republic Act No. 9474, also known as the Lending Company Regulation Act of 2007. The SEC has the authority to investigate complaints, impose sanctions, and even revoke licenses of errant lenders. Filing an online complaint with the SEC is a crucial mechanism for borrowers to seek redress and hold these companies accountable. This article provides a comprehensive guide on the process, grounded in Philippine legal frameworks, to empower individuals facing such harassment.

Legal Basis for Complaints Against Harassing Lending Companies

Understanding the legal underpinnings is essential for framing a strong complaint. The following laws and regulations form the foundation for actions against harassing lenders:

1. Lending Company Regulation Act (RA 9474)

This law mandates that all lending companies must be registered with the SEC and adhere to fair debt collection practices. Section 4 prohibits unfair collection methods, including harassment, intimidation, or the use of abusive language. Violations can lead to fines ranging from PHP 10,000 to PHP 50,000 per offense, suspension, or cancellation of the company's certificate of authority.
SEC Memorandum Circular No. 18, Series of 2019, further regulates online lending platforms (fintech lenders), requiring them to disclose terms clearly and prohibit abusive practices.

2. Data Privacy Act of 2012 (RA 10173)

Many harassment cases involve the misuse of personal information, such as sharing borrower data with third parties or using it for shaming. This act, enforced by the National Privacy Commission (NPC), protects personal data and imposes penalties for unauthorized processing. Complaints to the SEC can reference data privacy breaches, and the SEC may coordinate with the NPC for joint investigations.

3. Anti-Cybercrime Prevention Act of 2012 (RA 10175)

If harassment occurs online, such as through cyberbullying or threats via digital platforms, this law applies. Provisions on computer-related offenses, like unauthorized access or identity theft, can strengthen a complaint.

4. Consumer Protection Laws

The Consumer Act of the Philippines (RA 7394) and the Magna Carta for Philippine Internet Freedom (pending bills as of 2025) provide additional protections against deceptive and unfair business practices. The Department of Trade and Industry (DTI) may also be involved if the lender is not SEC-registered, but for lending-specific issues, the SEC takes precedence.

5. SEC Rules and Guidelines

The SEC's Corporate Governance and Finance Department (CGFD) handles complaints related to lending companies. Recent guidelines, such as those issued in 2023 and updated in 2025, emphasize consumer protection amid the rise of digital lending apps. For instance, lenders must obtain explicit consent for data sharing and limit collection contacts to reasonable hours (e.g., 8 AM to 5 PM).

Violations of these laws not only expose lenders to administrative penalties but can also lead to civil liabilities (e.g., damages for moral distress) or criminal charges under the Revised Penal Code for grave threats or slander.

What Constitutes Harassment by Lending Companies?

To substantiate a complaint, it's important to identify specific harassing behaviors. Common examples include:

Verbal or Written Abuse: Threats of physical harm, arrest, or legal action without basis; use of profane language in calls or messages.
Excessive Contact: Bombarding the borrower with multiple calls or texts daily, often outside business hours or on weekends.
Public Shaming: Posting borrower details on social media, contacting friends, family, or employers to disclose debts, or using "name-and-shame" tactics.
Misrepresentation: Falsely claiming affiliation with government agencies or threatening unfounded lawsuits.
Data Misuse: Accessing or sharing contacts from the borrower's phone without permission, a common issue with app-based lenders.
Unfair Terms: Imposing exorbitant interest rates (beyond the 36% annual cap set by the Bangko Sentral ng Pilipinas for certain loans) or hidden fees that lead to debt traps.

The SEC considers these acts as violations of fair lending practices. Borrowers should document all instances, including screenshots, call logs, and messages, as evidence.

Eligibility and Prerequisites for Filing a Complaint

Any individual who has borrowed from a SEC-registered lending company and experienced harassment can file a complaint. Key prerequisites include:

Verification of Lender's Registration: Confirm if the company is licensed by checking the SEC's website (www.sec.gov.ph) under the "Registered Lending Companies" list. Unregistered lenders may fall under the jurisdiction of other agencies like the DTI or BSP, but the SEC can still investigate if they claim to be registered.
Gather Evidence: Collect loan agreements, payment records, harassment logs, and any correspondence. Without evidence, complaints may be dismissed.
No Pending Cases: If the matter is already in court or with another agency, inform the SEC to avoid duplication.
Time Limits: While there is no strict statute of limitations for administrative complaints, filing promptly (within 6-12 months of the incident) strengthens the case.

Complaints can also be filed on behalf of others, such as vulnerable groups like senior citizens or persons with disabilities, under the Expanded Senior Citizens Act or similar laws.

Step-by-Step Guide to Filing an Online Complaint

The SEC has streamlined the process through its online portal, making it accessible without the need for physical visits. As of 2025, the eSPARC (Electronic Simplified Processing of Application for Registration of Corporations) and i-Complaint systems facilitate this. Here's a detailed walkthrough:

Step 1: Prepare Your Information

Personal Details: Full name, address, contact number, email.
Lender Details: Company name, address, registration number (if known), loan reference number.
Incident Description: A clear narrative of the harassment, including dates, times, and specifics.
Supporting Documents: Scan or photograph evidence (PDF or image formats, max 10MB per file).

Step 2: Access the SEC Online Portal

Visit the official SEC website: www.sec.gov.ph.
Navigate to the "Public Assistance" or "Complaints" section. Look for the "File a Complaint" button under the Enforcement and Investor Protection Department (EIPD) or CGFD.
If you're a first-time user, create an account via the SEC i-View or eSPAYSEC system. This requires a valid email and mobile number for verification.

Step 3: Select the Complaint Type

Choose "Complaint Against Lending Company" or "Fintech-Related Complaint."
Specify if it's related to harassment, unfair collection, data privacy, or other violations.

Step 4: Fill Out the Online Form

Enter all required fields accurately. The form typically includes sections for complainant details, respondent (lender) details, complaint narrative, and attachments.
In the narrative, reference specific laws (e.g., "Violation of Section 4 of RA 9474 due to harassing calls").
Upload evidence files. Ensure they are labeled clearly (e.g., "Harassment Messages 2025-11-01").

Step 5: Review and Submit

Double-check for completeness to avoid rejection.
Submit the form electronically. You'll receive a reference number via email or SMS for tracking.

Step 6: Pay Any Fees (If Applicable)

Most complaints are free, but if it escalates to a formal hearing, minimal fees (e.g., PHP 500 for verification) may apply. Payments can be made online via GCash, bank transfer, or over-the-counter.

The entire process can be completed in under an hour, depending on preparation.

What Happens After Filing?

Acknowledgment: The SEC will confirm receipt within 3-5 working days and assign a case officer.
Investigation: The CGFD reviews the complaint, may request additional info, and notifies the lender for a response (usually within 15 days).
Resolution: If substantiated, the SEC can issue cease-and-desist orders, fines, or license revocation. Borrowers may receive restitution or loan adjustments.
Timeline: Initial resolution can take 30-90 days; complex cases longer.
Appeals: If dissatisfied, appeal to the SEC En Banc or the Court of Appeals.
Coordination with Other Agencies: The SEC may refer privacy issues to the NPC or criminal aspects to the Department of Justice (DOJ).

Track your complaint via the portal using the reference number.

Additional Remedies and Protections

Beyond SEC complaints, consider:

Civil Suits: File for damages in regional trial courts under the Civil Code.
Criminal Charges: Report threats to the Philippine National Police (PNP) Anti-Cybercrime Group.
Class Actions: If multiple victims, coordinate through consumer groups like the Philippine Association of Lending Investors (PALI).
Debt Counseling: Seek help from the Credit Information Corporation (CIC) or non-profits for managing debts.
Preventive Measures: Before borrowing, verify lenders via SEC lists, read terms carefully, and use apps with privacy protections.

Challenges and Tips for Success

Common challenges include delayed responses due to SEC backlog or insufficient evidence. Tips:

Be detailed yet concise in your narrative.
Anonymity: While not fully anonymous, the SEC protects complainant identities during investigations.
Legal Aid: Free assistance from the Public Attorney's Office (PAO) or Integrated Bar of the Philippines (IBP) for indigent filers.
Stay Updated: Monitor SEC advisories for new regulations, such as enhanced fintech oversight in 2025.

Conclusion

Filing an online complaint with the SEC is a powerful tool for combating harassment by lending companies in the Philippines, promoting a fairer financial ecosystem. By leveraging the legal frameworks and following the outlined steps, borrowers can protect their rights and contribute to broader accountability. Remember, timely action and robust evidence are key to a successful outcome. If harassment persists, seek immediate support from authorities to ensure personal safety.