In the Philippines, the rise of digital lending platforms and Financial Technology (FinTech) companies has seen a parallel increase in reports of predatory behavior. Harassment, "debt shaming," and unauthorized use of personal data are not merely unethical; they are legal violations. The Securities and Exchange Commission (SEC) is the primary regulatory body tasked with overseeing Financing Companies (FCs) and Lending Companies (LCs).

1. Legal Basis for Protection

The SEC's authority to penalize unfair debt collection practices is primarily rooted in SEC Memorandum Circular No. 18, Series of 2019 (MC 18). This circular was issued to implement the provisions of the Lending Company Regulation Act of 2007 and the Financing Company Act of 1998.

Prohibited Practices under MC 18

The SEC explicitly prohibits the following acts by lenders and their third-party collection agents:

Threats of Violence: Any threat of physical harm against the debtor, their family, or their property.
Obscene/Profane Language: Using insults or foul language to coerce payment.
Disclosure of Names: Posting "shame lists" or publishing the names of debtors publicly (social media, community boards).
False Representation: Falsely claiming to be a lawyer, a court official, or a government agent to intimidate the debtor.
Contacting Contacts: Accessing the debtor’s phone directory and messaging contacts who are not co-makers or guarantors.
Harassing Communication: Contacting the debtor before 6:00 AM or after 10:00 PM, unless the debt is more than 60 days past due or the debtor gave express consent.

2. Documenting the Violation

Before filing a formal report, it is crucial to gather admissible evidence. The SEC requires "substantial evidence" to initiate an investigation.

Screenshots: Capture all threatening SMS messages, emails, or social media posts. Ensure the sender's number or account handle is visible.
Call Logs and Recordings: Record the date, time, and duration of harassing calls. If possible, record the conversation (note: under the Anti-Wiretapping Act, you must generally inform the other party they are being recorded, though in the context of criminal harassment, this is often debated).
Proof of Identity: Identify the specific Lending App or Company. Check the SEC website to see if they are a Registered Corporation and if they possess a Certificate of Authority (CA) to operate as a lender.

3. The Reporting Process

Step A: Formal Demand to Cease and Desist

While not strictly required, it is often helpful to send a formal email to the lending company's compliance officer demanding they stop the prohibited practices. This establishes that the company was aware of the agent's behavior.

Step B: Filing the Complaint with the SEC

Complaints are handled by the SEC Enforcement and Investor Protection Department (EIPD).

SEC Online Complaint Portal: Visit the official SEC website and look for the "i-Message" or the dedicated complaint portal for Lending/Financing Companies.
Formal Letter/Affidavit: You may submit a verified complaint or a simple letter-complaint containing:

The full name of the Lending/Financing Company.
A detailed chronological account of the harassment.
Specific provisions of MC 18 that were violated.

Submission: Complaints can be emailed to epd@sec.gov.ph or submitted physically at the SEC Headquarters in Makati or any SEC Extension Office.

4. Penalties for Violations

The SEC takes a "three-strike" approach to violations of MC 18:

First Offense: A fine of ₱25,000 for Lending Companies or ₱50,000 for Financing Companies.
Second Offense: A fine of ₱50,000 for Lending Companies or ₱100,000 for Financing Companies.
Third Offense: A fine of up to ₱1,000,000, and/or revocation of the Certificate of Authority to operate, effectively shutting down the business.

5. Overlap with Data Privacy (NPC)

If the harassment involves the unauthorized use of your contact list or the hacking of your social media account, you should also file a complaint with the National Privacy Commission (NPC) for violations of the Data Privacy Act of 2012. The SEC and NPC often collaborate on cases involving Online Lending Applications (OLAs).

6. Important Considerations

The Debt Remains: Reporting harassment does not extinguish the legal obligation to pay the principal loan and valid interest. It only addresses the manner in which the debt is collected.
Unregistered Lenders: If the lender is not registered with the SEC, they are operating illegally. The SEC can coordinate with the Philippine National Police (PNP) or the National Bureau of Investigation (NBI) for criminal prosecution regarding "Cyber-Harassment" and "Violations of the Lending Company Regulation Act."