In the Philippines, the rise of Financial Technology (FinTech) has brought convenience through Online Lending Applications (OLAs). However, this has also led to an increase in predatory lending practices, including the operation of unregistered entities and the use of debt-collection harassment.

Under Philippine law, lending and financing companies must be registered with the Securities and Exchange Commission (SEC). Furthermore, debt collection must adhere to fair practices as outlined by the SEC and the National Privacy Commission (NPC).

I. Legal Basis for SEC Authority

The SEC regulates lending activities through several key pieces of legislation and administrative orders:

Lending Company Regulation Act of 2007 (R.A. 9474): Requires all lending companies to be incorporated and to obtain a Certificate of Authority (CA) to operate.
SEC Memorandum Circular No. 18 (Series of 2019): Specifically prohibits "Unfair Debt Collection Practices."
The Cybercrime Prevention Act of 2012 (R.A. 10175): Addresses online libel, threats, and unauthorized access to contact lists.
Data Privacy Act of 2012 (R.A. 10173): Governs the processing of personal information, often violated when OLAs access a borrower's contact list to shame them.

II. Identifying Illegal OLAs

An OLA is considered illegal if it falls under any of the following categories:

No Incorporation: The entity is not registered as a corporation with the SEC.
No Certificate of Authority: Even if registered as a corporation, it lacks the specific CA required to engage in lending.
Unfair Practices: Using harassment, shaming, or unauthorized data access, regardless of their registration status.

III. Prohibited Harassment and Unfair Practices

SEC Memorandum Circular No. 18 (2019) explicitly prohibits the following conduct by lending companies and their third-party service providers:

Threats of Violence: Using or threatening to use physical force to harm the debtor or their reputation.
Profanity/Insults: Using obscene or profane language to insult the borrower.
Privacy Violations: Disclosing the borrower's name as a "delinquent" to the public or contacting people in the borrower’s contact list without consent.
False Representation: Falsely claiming to be lawyers, police officers, or government agents 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 consent was given.

IV. How to File a Formal Complaint with the SEC

The SEC's Corporate Governance and Finance Department (CGFD) handles complaints against lending and financing companies.

1. Gather Evidence

Before filing, document all interactions. This serves as the foundation of your legal claim:

Screenshots: Capture messages, call logs, emails, and social media posts containing threats or harassment.
Loan Documents: Keep copies of the loan agreement, disclosure statements (showing interest rates/fees), and proofs of payment.
Entity Details: Note the name of the app, the developer, and any bank accounts or mobile wallets used for transactions.

2. Verify Registration

Check the SEC website for the "List of Recorded Online Lending Platforms" and the "List of Lending Companies with Certificate of Authority." If the app is not on these lists, it is operating illegally.

3. Submit the SEC Complaint Form

The SEC provides a specialized Complaint Form for OLAs. You must provide:

Your complete name and contact details.
The exact name of the OLA and the company operating it.
A clear narration of the facts (The "What, When, and How" of the harassment or illegal activity).
Your specific prayer/request (e.g., "To penalize the company and revoke its license").

4. Filing Channels

Complaints can be submitted through:

Email: Send the accomplished form and evidence to cgfd_enforcement@sec.gov.ph.
Online Portal: Use the SEC's i-Message platform or their dedicated online complaint portal for lending companies.

V. Concurrent Actions

In addition to the SEC, victims of OLA harassment should consider these avenues:

Agency	Scope of Complaint
National Privacy Commission (NPC)	For "Contact Tracing" or "Debt Shaming" involving the unauthorized use of your personal data/contacts.
PNP Anti-Cybercrime Group (ACG)	For criminal acts like Cyber-Libel, Grave Threats, or violations of the Cybercrime Prevention Act.
National Bureau of Investigation (NBI)	For organized cyber-fraud or large-scale illegal lending operations.

VI. Legal Consequences for Violators

Lending companies found violating SEC regulations face graduated penalties:

Fines: Ranging from ₱25,000 to ₱1,000,000.
Cease and Desist Orders (CDO): Immediate stoppage of operations.
Revocation of License: Permanent cancellation of the Certificate of Authority and Certificate of Incorporation.
Criminal Prosecution: Imprisonment for officers under the Lending Company Regulation Act or the Cybercrime Prevention Act.