The rise of Financial Technology (FinTech) in the Philippines has made credit more accessible through Online Lending Applications (OLAs). However, this convenience has been overshadowed by a surge in "online shaming," harassment, and predatory collection practices. If you are a victim of these tactics, Philippine law provides specific mechanisms to protect your privacy and dignity.
I. Defining Illegal Collection Practices
Under SEC Memorandum Circular No. 18 (Series of 2019), the Securities and Exchange Commission (SEC) explicitly prohibits "Unfair Debt Collection Practices." Financing and lending companies are forbidden from:
- Threats of Violence: Using or threatening to use physical force or other criminal means to harm the person, reputation, or property of any person.
- Obscene/Profane Language: Using insults or symbols to abuse the borrower.
- Disclosure of Names: Posting or threatening to post the names of "delinquent borrowers" on social media or public platforms (online shaming).
- Contacting Others: Contacting people in the borrower's contact list without consent, or informing third parties about the debt, except for spouse or guarantors.
- Misrepresentation: Falsely claiming to be a lawyer, police officer, or government agency, or using fake legal documents/subpoenas to intimidate the borrower.
- Unreasonable Hours: Contacting the borrower between 10:00 PM and 6:00 AM, unless the debt is more than 60 days past due or express consent was given.
II. Legal Frameworks for Protection
- The Data Privacy Act of 2012 (RA 10173): Most OLAs require access to your contacts, gallery, and social media. Using this data to harass you or your contacts is a violation of your privacy rights.
- Cybercrime Prevention Act of 2012 (RA 10175): Practices such as online shaming and identity theft through digital platforms fall under this act.
- Revised Penal Code: Harassment can constitute Grave or Light Coercion, Unjust Vexation, or Libel.
III. Step-by-Step Reporting Process
1. Preserve Evidence
Before blocking the harasser, document everything:
- Screenshots: Capture all threatening texts, emails, and social media posts.
- Call Logs: Keep a record of the frequency and timing of calls.
- App Details: Take note of the app name, the company behind it (found in the "About" section), and their SEC Registration Number.
2. File a Complaint with the SEC
The Securities and Exchange Commission (SEC) is the primary regulator of lending companies.
- Verify: Check the SEC website to see if the OLA is registered. If it is NOT registered, it is an illegal operation.
- Action: Email the Corporate Governance and Finance Department (CGFD) at
cgfd_enforcement@sec.gov.phor use the SEC’s online complaint portal.
3. Lodge a Privacy Complaint with the NPC
If the lender accessed your contact list or posted your information online, file a complaint with the National Privacy Commission (NPC).
- Process: Visit the NPC website and follow the "Complaints" procedure. They can issue "Cease and Desist" orders against apps found violating data privacy.
4. Report to Cybercrime Authorities
For criminal threats or severe harassment, involve the police:
- PNP Anti-Cybercrime Group (PNP-ACG): You can file a report at their office in Camp Crame or through their official website/Facebook page.
- NBI Cybercrime Division (NBI-CCD): You may personally visit the NBI headquarters to file a formal complaint.
IV. Summary of Regulatory Bodies
| Agency | Focus of Complaint |
|---|---|
| SEC | Unfair collection practices, unregistered lending, high interest violations. |
| NPC | Unauthorized access to contacts, online shaming, data privacy breaches. |
| PNP/NBI | Death threats, extortion, grave coercion, and criminal harassment. |
| Google/Apple | Violations of App Store/Play Store policies (to get the app delisted). |
V. Key Takeaways for Borrowers
- Debt is Civil, Not Criminal: In the Philippines, no one can be imprisoned for non-payment of debt (unless fraud or estafa is involved). Do not be intimidated by fake warrants of arrest.
- Right to Privacy: Providing access to your contacts for "verification" does not grant the lender the right to call them for collection.
- The "Double Check": Always verify if an OLA has a Certificate of Authority (CA) to operate as a lending/financing company before borrowing. Many predatory apps operate without one.