The rise of Financial Technology (FinTech) in the Philippines has facilitated easier access to credit through Online Lending Applications (OLAs). However, this convenience has been marred by a surge in predatory practices, ranging from exorbitant interest rates to severe harassment and unauthorized data processing.

For victims of these practices, the Philippine legal system provides specific mechanisms for redress and protection.

1. Defining Illegal Collection Practices and Harassment

Under Philippine law, lending companies and their third-party service providers are strictly prohibited from employing "unfair collection practices." These are primarily governed by SEC Memorandum Circular No. 18, Series of 2019, and the Revised Penal Code.

Prohibited acts include, but are not limited to:

Threats of Violence: Any threat of physical harm against the borrower, their family, or their property.
Profanity and Insults: The use of obscene, defamatory, or abusive language to humiliate the borrower.
Public Disclosure of Debt: Posting a borrower’s name or debt on social media, or informing their contacts (gathered through phonebook access) about the delinquency.
False Representation: Claiming to be lawyers, police officers, or court officials to intimidate the borrower.
Contacting at Unreasonable Hours: Communicating with the borrower between 10:00 PM and 6:00 AM, unless the borrower has consented to such timing.
Threatening Legal Action that is Impossible: Threatening "imprisonment for non-payment of debt." Under the 1987 Constitution, no person shall be imprisoned for debt.

2. Violation of Data Privacy Rights

Many OLAs require access to a borrower's contacts, gallery, and social media accounts as a condition for loan approval. Using this information to harass the borrower or their contacts is a direct violation of the Data Privacy Act of 2012 (Republic Act No. 10173).

Processing personal information for purposes other than those declared and consented to—such as "debt shaming" contacts—constitutes unauthorized processing and malicious disclosure, both of which carry criminal penalties.

3. Step-by-Step Reporting Process

If you are a victim of these practices, you should take the following legal steps:

Step A: Evidence Gathering

Before filing a complaint, document every instance of harassment:

Screenshots: Capture all threatening text messages, emails, and social media posts.
Call Logs and Recordings: Keep a record of the frequency and timing of calls.
Proof of Payment/Contract: Keep copies of your loan agreement and receipts of payments made.

Step B: Filing with the Securities and Exchange Commission (SEC)

The SEC regulates lending and financing companies. If the OLA is registered, the SEC can impose administrative fines or revoke its primary registration.

Action: Submit a formal complaint to the Corporate Governance and Finance Department (CGFD) of the SEC. You may use their online portal or visit their office.
Note: Check if the OLA is on the SEC’s "List of Recorded Online Lending Platforms." If they are not registered, they are operating illegally.

Step C: Filing with the National Privacy Commission (NPC)

If the harassment involves the use of your contact list or public shaming, file a complaint for data privacy violations.

Action: Visit the NPC website to file a formal complaint. The NPC has the power to order the shutdown of apps found violating privacy laws.

Step D: Filing with the PNP Anti-Cybercrime Group (PNP-ACG) or NBI

For threats, coercion, and violations of the Cybercrime Prevention Act of 2012 (RA 10175), victims should seek police assistance.

Action: Go to the nearest PNP-ACG district office or the NBI Cybercrime Division. They can assist in tracking the perpetrators and filing criminal charges for Grave Threats or Cyber-Libel.

4. Legal Remedies and Defenses

Cease and Desist: Formal complaints can lead to the SEC issuing Cease and Desist Orders (CDO) against the offending apps.
Truth in Lending Act: If the app failed to disclose the true cost of credit (including all fees and interests) before the transaction, they are in violation of RA 3765. This can be used as a defense or a ground for a separate complaint.
Small Claims Court: If you are being overcharged beyond the legal interest rates or have already overpaid due to hidden fees, you may file a case in Small Claims Court to recover the excess.

5. Summary Table of Agencies

Type of Violation	Lead Agency	Contact/Method
Unfair Collection / No License	SEC	cgfd_complaints@sec.gov.ph
Data Privacy / Contact Shaming	NPC	complaints@privacy.gov.ph
Cyber-Libel / Grave Threats	PNP-ACG / NBI	Online Cybercrime Incident Report
Harassment / Coercion	Local Police	Blotter at nearest station

Legal Note: While the debt remains a civil obligation, the method of collection is subject to criminal and administrative laws. A debt does not give a lender the right to strip a borrower of their constitutional right to dignity and privacy.