In the Philippines, the proliferation of "loan sharks"—locally known as 5-6 lenders—and predatory digital lending apps (DLAs) has led to significant financial distress and human rights concerns. Reporting these entities is not just a matter of personal relief; it is a legal step toward enforcing the Lending Company Regulation Act of 2007 and the Financial Products and Services Consumer Protection Act (FCPA).

1. Defining Illegal Lending Practices

Under Philippine law, an entity must be registered with the Securities and Exchange Commission (SEC) to legally engage in the business of lending. Illegal practices generally fall into three categories:

Operating without a License: Lending money to the public without a Certificate of Authority (CA) from the SEC.
Unconscionable Interest Rates: While the Philippines currently has no fixed ceiling on interest rates for some loans, the Supreme Court has consistently ruled that rates deemed "excessive, iniquitous, unconscionable, and exorbitant" (often starting above 3-4% per month) are void.
Unfair Debt Collection Practices: This includes harassment, the use of profanity, threatening physical harm, or contacting people in the debtor's phone directory who are not co-makers or guarantors.

2. Regulatory Bodies and Where to Report

Depending on the nature of the lender and the violation, reports should be filed with specific government agencies.

A. Securities and Exchange Commission (SEC)

The SEC is the primary regulator for lending and financing companies.

When to report: If the lender is unregistered, lacks a Certificate of Authority, or engages in "debt shaming" (harassment via social media or contacts).
Mechanism: Complaints can be filed through the SEC Enforcement and Investor Protection Department (EIPD) or via the SEC’s online complaint portal.

B. Bangko Sentral ng Pilipinas (BSP)

The BSP regulates banks, pawnshops, and BSP-supervised financial institutions.

When to report: If the unfair practice involves a traditional bank or a pawnshop.
Mechanism: Use the BSP Online ResponSe (BOB) chatbot on their website or Facebook Messenger.

C. National Privacy Commission (NPC)

Many digital lending apps gain unauthorized access to a borrower's contact list, gallery, and social media.

When to report: If the lender "doxxes" you, contacts your friends/family without consent, or leaks your private data.
Mechanism: File a formal complaint for violation of the Data Privacy Act of 2012.

D. National Bureau of Investigation (NBI) & PNP Anti-Cybercrime Group

When to report: If the lender makes death threats, uses coercion, or commits grave threats and defamation. These are criminal acts under the Revised Penal Code and the Cybercrime Prevention Act.

3. Step-by-Step Reporting Process

Step 1: Document Everything

Before filing a complaint, gather "hard" evidence. Government agencies require proof to initiate an investigation:

Screenshots of threatening text messages or emails.
Social media posts where you were shamed or tagged.
Loan contracts, disclosure statements (or lack thereof), and proof of payments.
The name of the app or entity and their alleged SEC registration number.

Step 2: Check the SEC List

Verify if the company is authorized. The SEC maintains a "List of Recorded Lending Companies" and "List of Financing Companies" on its official website. If they are not on the list, they are operating illegally.

Step 3: Formalize the Complaint

Draft a Complaint Affidavit. This is a sworn statement detailing:

The identity of the lender.
The specific acts committed (e.g., "On October 5, the respondent sent a message to my employer calling me a thief").
The laws violated (e.g., Unfair Debt Collection Practices under SEC Memorandum Circular No. 18).

4. Relevant Laws and Protections

Law/Regulation	Key Protection
SEC MC No. 18, Series of 2019	Prohibits harassment, use of threats, and contacting persons in the borrower's contact list.
R.A. No. 9474	The Lending Company Regulation Act; requires all lenders to be corporations and licensed.
R.A. No. 11765 (FCPA)	Grants regulators the power to penalize financial providers for unfair treatment and provide redress to consumers.
Truth in Lending Act	Requires lenders to disclose the full cost of credit (interest, fees, etc.) in writing before the transaction.

5. Important Legal Note on "Debt Shaming"

In the Philippines, debt is a civil obligation, not a criminal one. Under the Constitution, no person shall be imprisoned for debt. However, while you cannot go to jail for failing to pay a loan (unless fraud/estafa is involved), the lender can go to jail or face heavy fines for using illegal methods to collect it.

If a lender accesses your contacts and broadcasts your debt, they are violating the Data Privacy Act, which carries a penalty of imprisonment and millions of pesos in fines. You have the right to demand the deletion of your data and to seek damages for the violation of your privacy and reputation.