Introduction

In the Philippines, the rapid growth of the lending industry, particularly through online platforms and financing companies, has provided easier access to credit for many Filipinos. However, this expansion has also led to increasing reports of harassment by lending companies during debt collection. Harassment can take various forms, including incessant calls, threats, public shaming, or unauthorized disclosure of personal information. Such practices not only cause emotional distress but also violate several Philippine laws designed to protect consumers and borrowers.

This article provides a comprehensive guide on how to file a complaint against lending company harassment. It covers the legal framework, types of harassment, regulatory bodies involved, step-by-step procedures, required documentation, potential remedies, and preventive measures. By understanding these elements, borrowers can assert their rights effectively and hold errant lenders accountable. Note that while this information is based on established Philippine laws and regulations, consulting a legal professional for personalized advice is recommended.

Understanding Lending Company Harassment

Lending company harassment refers to abusive, coercive, or unfair debt collection practices employed by lenders or their agents to recover loans. Under Philippine law, legitimate debt collection is permitted, but it must be conducted ethically and within legal bounds. Harassment crosses the line when it involves intimidation, deception, or violation of privacy.

Common Forms of Harassment

Excessive Communication: Repeated calls, messages, or visits at unreasonable hours (e.g., before 7 AM or after 9 PM) or in a manner that causes undue stress.
Threats and Intimidation: Verbal or written threats of violence, arrest, or legal action without basis, or implying connections to authorities.
Public Shaming: Posting debt details on social media, contacting employers, family, or friends to embarrass the borrower (known as "debt shaming").
Misrepresentation: Falsely claiming to be law enforcement or using deceptive tactics to collect debts.
Privacy Violations: Unauthorized sharing of personal data, such as photos, contact lists, or financial information obtained during loan applications.
Unfair Collection Practices: Adding unauthorized fees, miscalculating interest, or refusing to acknowledge payments.

These acts are prevalent in the online lending sector, where apps and fintech companies often use aggressive algorithms and third-party collectors. The Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission (SEC) have noted a surge in complaints, especially post-COVID-19, when borrowing spiked.

Who Can Be Held Liable?

The lending company itself (e.g., registered financing companies or banks).
Third-party collection agencies hired by the lender.
Individual agents or employees involved in the harassment.
In cases of online lending, platforms operating without proper registration may face additional penalties for illegal operations.

Relevant Philippine Laws and Regulations

Several laws govern lending practices and protect borrowers from harassment. These form the legal basis for filing complaints.

1. Republic Act No. 3765 (Truth in Lending Act)

This law requires lenders to disclose full loan terms, including interest rates and fees, to prevent deceptive practices. Violations, such as hidden charges leading to harassment, can be grounds for complaints.

2. Republic Act No. 10173 (Data Privacy Act of 2012)

Administered by the National Privacy Commission (NPC), this protects personal information. Lenders must obtain consent for data use, and unauthorized sharing (e.g., debt shaming via social media) is punishable. Penalties include fines up to PHP 5 million and imprisonment.

3. Republic Act No. 10175 (Cybercrime Prevention Act of 2012)

If harassment occurs online, such as through emails, social media, or apps, it may constitute cyberlibel, identity theft, or computer-related fraud. Offenders can face imprisonment and fines.

4. Republic Act No. 7394 (Consumer Act of the Philippines)

Under the Department of Trade and Industry (DTI), this prohibits unfair trade practices, including abusive debt collection. It empowers consumers to seek redress for deceptive or harassing tactics.

5. SEC Memorandum Circular No. 18, Series of 2019 (Prohibition on Unfair Debt Collection Practices)

Specifically for financing and lending companies registered with the SEC, this circular bans threats, obscene language, public disclosure of debts, and excessive contacts. Violations can lead to license suspension or revocation.

6. BSP Circular No. 1165, Series of 2022 (Guidelines on Handling Consumer Complaints)

For banks and BSP-supervised institutions, this mandates fair collection practices and establishes complaint mechanisms.

7. Civil Code of the Philippines (Articles 19-21, 26)

These provisions address abuse of rights, damages from harassment, and moral injury. Borrowers can claim damages for emotional distress.

8. Penal Code Provisions

Article 285 (Other Light Threats): For threats not amounting to grave coercion.
Article 287 (Unjust Vexation): For acts causing annoyance or disturbance.

In severe cases, harassment may escalate to criminal charges like grave coercion (Article 286) or estafa if fraud is involved.

Regulatory Bodies and Jurisdiction

Depending on the lender's type and harassment nature, complaints are filed with specific agencies:

Securities and Exchange Commission (SEC): For non-bank financing and lending companies. Handles most online lending complaints.
Bangko Sentral ng Pilipinas (BSP): For banks, quasi-banks, and BSP-supervised lenders.
National Privacy Commission (NPC): For data privacy breaches.
Department of Trade and Industry (DTI): For general consumer protection issues.
Philippine National Police (PNP) or National Bureau of Investigation (NBI): For criminal aspects, especially cybercrimes.
Department of Justice (DOJ): For preliminary investigations in criminal cases.
Integrated Bar of the Philippines (IBP) or Public Attorney's Office (PAO): For free legal aid if needed.

If the lender is unregistered (illegal lending), report to the SEC or PNP for anti-usury enforcement.

Step-by-Step Guide to Filing a Complaint

Filing a complaint involves preparation, submission, and follow-up. The process varies slightly by agency but follows a general framework.

Step 1: Gather Evidence

Document all incidents: Save screenshots, call logs, messages, emails, and recordings (with consent where required).
Note dates, times, names of agents, and exact words used.
Collect loan documents: Contracts, payment receipts, and disclosure statements.
If physical harm or threats occurred, obtain medical reports or witness statements.
Preserve digital evidence without alteration to maintain admissibility.

Step 2: Attempt Informal Resolution (Optional but Recommended)

Contact the lender's customer service to lodge an internal complaint. Many companies have hotlines or email support.
Demand cessation of harassment and request a written acknowledgment.
If unresolved, proceed to formal filing.

Step 3: Identify the Appropriate Agency

Check the lender's registration: Use the SEC's website for financing companies or BSP's for banks.
For privacy issues, go to NPC; for cyber elements, PNP Cybercrime Unit.

Step 4: Prepare the Complaint Form and Documents

Most agencies provide downloadable forms (e.g., SEC's Verified Complaint Affidavit, NPC's Complaint Form).
Include:
- Personal details (name, address, contact).
- Lender's details (name, address, registration number).
- Detailed narrative of harassment.
- Supporting evidence (attachments).
- Relief sought (e.g., cease harassment, damages, license revocation).
Notarize the affidavit if required (common for SEC and NPC).

Step 5: Submit the Complaint

Online Submission: Preferred for efficiency.
- SEC: Via email to cgfd_md@sec.gov.ph or online portal.
- BSP: Through consumerassistance@bsp.gov.ph or BSP Online Buddy (BOB) chatbot.
- NPC: Online complaint form at privacy.gov.ph.
- DTI: ecomplaints.dti.gov.ph.
In-Person: Visit agency offices (e.g., SEC Head Office in Pasay City or regional branches).
Fees: Generally free, but notarization may cost PHP 100-200.

Step 6: Follow-Up and Investigation

Agencies acknowledge receipt within days and assign a case number.
Investigation may involve hearings, mediation, or subpoenas to the lender.
Timeline: 30-90 days for resolution, depending on complexity.
If criminal, the agency may endorse to DOJ for prosecution.

Step 7: Possible Outcomes and Appeals

Administrative Sanctions: Fines (up to PHP 1 million per violation), license suspension, or blacklisting.
Civil Remedies: Refund of overcharges, damages (actual, moral, exemplary).
Criminal Penalties: Imprisonment (e.g., 1-6 months for unjust vexation) and fines.
If dissatisfied, appeal to higher bodies (e.g., SEC En Banc) or file a court case.

Special Considerations

For Online Lending Apps

Many apps operate under SEC-registered entities but use aggressive tactics. The SEC's "Lending Company Regulation Act" (RA 9474) requires registration; unregistered ones are illegal. Report via SEC's "Operation Against Illegal Lending" hotline.

For Vulnerable Groups

Senior citizens, PWDs, or low-income borrowers may qualify for expedited handling under RA 9994 (Expanded Senior Citizens Act) or other protective laws.

Statute of Limitations

File within reasonable time: 4 years for contracts, 1 year for quasi-delicts, but promptly for criminal cases.

Class Actions

If multiple borrowers are affected, consider a collective complaint or class suit for stronger impact.

Preventive Measures and Borrower Rights

To avoid harassment:

Borrow only from registered lenders (verify via SEC/BSP lists).
Read loan terms carefully; question high interest (capped at 36% per annum under usury laws).
Use apps with privacy policies compliant with NPC.
Report early signs of abuse.

Borrower rights include:

Fair treatment under the Financial Consumer Protection Act (RA 11765).
Right to dispute debts and request validation.
Protection from discrimination or retaliation for complaining.

Challenges and Tips for Success

Common hurdles include lack of evidence, delayed responses, or lender evasion. Tips:

Keep records meticulously.
Seek free legal aid from PAO, IBP, or NGOs like the Credit Management Association of the Philippines.
Join support groups on social media for shared experiences.
If harassment persists post-complaint, seek a restraining order from courts.

Conclusion

Filing a complaint against lending company harassment in the Philippines empowers borrowers to combat abusive practices and promotes a fair financial ecosystem. By leveraging the robust legal framework—from the Data Privacy Act to SEC regulations—victims can seek justice and deter future violations. Remember, while self-filing is possible, engaging a lawyer ensures compliance with procedural nuances and maximizes chances of success. Upholding consumer rights strengthens the integrity of the lending industry for all Filipinos.