The rise of Financial Technology (FinTech) in the Philippines has made credit more accessible, but it has also led to the proliferation of predatory Online Lending Apps (OLAs). A common grievance among borrowers involves "debt shaming" and harassment—tactics used by some lenders to coerce payment through intimidation and privacy violations.

If you or someone you know is experiencing harassment from an OLA, the Philippine legal system provides several mechanisms for protection and redress.

1. Defining Harassment and Unfair Collection Practices

Under SEC Memorandum Circular No. 18, Series of 2019, the Securities and Exchange Commission (SEC) explicitly prohibits "Unfair Debt Collection Practices." Harassment is not just "annoying" behavior; it is a violation of regulatory standards. Prohibited acts include:

Threats of Violence: Using or threatening to use physical violence to harm the person, their reputation, or their property.
Obscene/Profane Language: Using insults or symbols intended to abuse the borrower.
Disclosure of Names: Publishing the names of borrowers who allegedly refuse to pay (except in specific legal contexts).
Contacting Contacts: Accessing the borrower’s phone contacts to inform them of the debt or to shame the borrower.
Misrepresentation: Falsely claiming to be a lawyer, a court representative, or a government official to intimidate the borrower.
Unreasonable Hours: Contacting the borrower before 6:00 AM or after 10:00 PM, unless the debt is past due or the borrower gave express consent.

2. Violations of the Data Privacy Act (RA 10173)

Many OLAs require access to your contacts, gallery, and social media accounts as a condition for the loan. Using this information to harass you or "blast" your contacts with messages about your debt is a criminal violation of the Data Privacy Act of 2012.

The National Privacy Commission (NPC) has previously issued cease-and-desist orders against numerous apps for "malicious disclosure" and "unauthorized processing" of personal information.

3. Step-by-Step Reporting Process

Step A: Document Everything

Before filing a complaint, gather evidence. This is crucial for a legal case:

Screenshots: Save copies of threatening text messages, emails, or social media posts.
Call Logs: Record the frequency and timing of calls.
Recordings: If possible (and legal under the Anti-Wiretapping Law in specific contexts of harassment), record the audio of the threats.
Contact List "Blasts": Get screenshots from friends or family members who were contacted by the OLA.

Step B: Report to the SEC

The SEC oversees the licensing of lending companies.

Check Registration: Verify if the OLA is registered via the SEC website.
File a Formal Complaint: Send an email to cgfd_enforcement@sec.gov.ph or visit the SEC Express portal.
Required Info: Your full name, the name of the OLA, their contact details, and your supporting evidence.

Step C: File a Complaint with the National Privacy Commission (NPC)

If the OLA contacted your phone contacts or posted your photos online:

Visit the NPC website (privacy.gov.ph) and use the "Complaints" section.
File a "Sumbong" regarding the unauthorized use of your personal data.

Step D: Coordinate with the PNP ACG or NBI CCD

If the harassment involves grave threats, extortion, or cyber-libel, it becomes a criminal matter:

PNP Anti-Cybercrime Group (ACG): Visit their office at Camp Crame or report via their Facebook page/website.
NBI Cybercrime Division (CCD): You can file a complaint personally at the NBI office.

4. Legal Remedies and Penalties

Lenders found guilty of these practices face severe penalties:

Administrative Fines: The SEC can impose fines ranging from ₱25,000 to ₱1,000,000.
License Revocation: Persistent offenders can have their Certificate of Authority to operate revoked.
Imprisonment: Violations of the Data Privacy Act or the Cybercrime Prevention Act can lead to prison terms ranging from one to seven years and fines up to ₱5,000,000.

5. Essential Advice for Borrowers

Do Not Panic: Harassment is a tactic used because they often lack the legal standing to sue you for a small civil debt.
Check the "List of Blocked OLAs": Both the SEC and NPC regularly update lists of apps that have been ordered to shut down.
Cybersecurity: Revoke app permissions on your phone settings and consider changing your SIM card if the harassment becomes unbearable, provided you have already documented the evidence.

Note: While the debt itself is a civil obligation, harassment is a separate legal violation. A borrower’s failure to pay does not give the lender a license to violate the law or the borrower's fundamental human rights.