In the Philippines, the rise of Financial Technology (FinTech) has led to an explosion of Online Lending Applications (OLAs). While many are legitimate, a significant number operate illegally or engage in predatory practices. The Securities and Exchange Commission (SEC), through its Corporate Governance and Finance Department (CGFD) and the Enforcement and Investor Protection Department (EIPD), is the primary regulatory body tasked with overseeing these entities.

I. Grounds for Filing a Complaint

Before initiating a report, it is essential to identify the specific violation. Under Republic Act No. 9474 (Lending Company Regulation Act of 2007) and Republic Act No. 10173 (Data Privacy Act of 2012), common grounds include:

Lack of Authority: Operating without a Certificate of Incorporation and a Certificate of Authority (CA) to operate as a Lending/Financing Company.
Harassment and Unfair Collection Practices: Violations of SEC Memorandum Circular No. 18 (Series of 2019), which prohibits the use of threats, profanity, or unauthorized access to contact lists.
Hidden Fees and Non-Disclosure: Failure to provide a Disclosure Statement prior to the consummation of the loan, as required by the Truth in Lending Act.
Excessive Interest Rates: Violations of Bangko Sentral ng Pilipinas (BSP) circulars regarding interest rate caps on small-value loans.

II. Evidence Gathering

The SEC requires concrete evidence to take administrative or criminal action. Compiling the following is critical:

Screenshots of the Application: The interface, the loan terms, and the "Terms and Conditions" (if accessible).
Disclosure Statements: Any document sent by the OLA detailing the loan amount, net proceeds, and interest.
Communication Logs: Screenshots of SMS, emails, or social media messages showing harassment, death threats, or "shaming" (e.g., messages sent to your contacts).
Proof of Payment: Receipts or transaction logs from e-wallets or banks.
Company Details: The registered corporate name and business name (often different from the app name).

III. The Reporting Process

1. Verification

Check the SEC List of Recorded Lending Companies and Financing Companies on the official SEC website. If the app is not on the list, it is an "illegal lender." If it is on the list but engaging in harassment, it is a "violating lender."

2. Formal Complaint via the SEC Express Net (i-Message)

The SEC prefers reports via their online portals to streamline the process:

Access the SEC Contact Center or the i-Message portal.
Select the department: Corporate Governance and Finance Department (CGFD) for registered entities, or Enforcement and Investor Protection Department (EIPD) for unregistered/scam operations.

3. Filing a Formal Letter-Complaint

For serious violations, a formal letter should be emailed to cgfd_complaints@sec.gov.ph or epd@sec.gov.ph. The letter must contain:

The Full Name and Contact Details of the Complainant.
The Name of the OLA and the operating company (if known).
A concise Statement of Facts (dates, amounts, and specific incidents).
The specific relief sought (e.g., "cease and desist" or "cancellation of Certificate of Authority").

4. Coordination with the National Privacy Commission (NPC)

If the fraud involves the unauthorized use of your contact list or "doxing," a parallel complaint should be filed with the NPC via their "Complaints and Investigation Division" for violations of the Data Privacy Act.

IV. Legal Remedies and SEC Actions

Upon receipt of a valid complaint, the SEC has the power to:

Issue Cease and Desist Orders (CDO): Ordering the OLA to stop operations immediately.
Impose Administrative Fines: Penalties for violating memorandum circulars.
Revocation of Authority: Permanently canceling the company’s right to operate.
Criminal Prosecution: Referring the case to the Department of Justice (DOJ) for violations of the Cybercrime Prevention Act.

Note: Reporting to the SEC does not automatically extinguish a legitimate debt, but it provides a legal shield against predatory practices and can lead to the shutdown of the fraudulent entity.