In recent years, the rise of Financial Technology (FinTech) in the Philippines has provided Filipinos with easier access to credit through Online Lending Applications (OLAs). However, this convenience often comes at a steep price: predatory lending practices and illegal debt collection methods.

If you or someone you know is being harassed by an OLA through relentless calls, threats, or "debt shaming," it is crucial to know that Philippine law provides specific protections and clear avenues for redress.

1. What Constitutes Illegal Debt Collection?

While lenders have the right to collect legitimate debts, the Securities and Exchange Commission (SEC), through Memorandum Circular No. 18 (Series of 2019), explicitly prohibits "unfair debt collection practices."

Prohibited acts include:

Threats of Violence: Using or threatening to use physical force to harm the debtor, their reputation, or their property.
Obscene/Profane Language: Using insults or foul language to intimidate the borrower.
Debt Shaming: Contacting people in the borrower’s contact list who are not co-makers or guarantors, or posting the borrower’s personal details and debt information on social media.
Misrepresentation: Falsely claiming to be a lawyer, a court official, or a police officer, or threatening that a "summons" or "warrant of arrest" has been issued (since non-payment of a debt—excluding BP 22 cases—is not a criminal offense).
Harassing Contact: Making calls or sending messages at unreasonable hours (typically between 10:00 PM and 6:00 AM), unless the borrower has consented to such timing.

2. The Legal Framework for Protection

Several laws and regulations protect borrowers from OLA harassment:

RA 10173: Data Privacy Act of 2012: This is the most potent weapon against OLAs that "harvest" your contact list. Accessing your phone's contacts to harass friends and family is a violation of the principle of "proportionality" and "purpose limitation" in data processing.
SEC Memorandum Circular No. 18 (2019): Specifically targets unfair debt collection practices of financing and lending companies.
RA 10951 & The Revised Penal Code: Covers crimes like Grave or Light Threats, Coercion, and Libel/Cyberlibel (if they post your information online to shame you).
RA 10175: Cybercrime Prevention Act of 2012: Applicable when the harassment involves online threats, identity theft, or computer-related fraud.

3. Step-by-Step Guide to Stopping the Harassment

If you are being harassed, follow these steps to build your case and stop the calls:

Step A: Document Everything

Do not delete the messages. These are your primary evidence.

Take Screenshots: Capture the phone number, the date/time, and the content of the harassing messages.
Record Calls: If your phone allows, record the conversation (note that under the Anti-Wiretapping Act, it is generally safer to use these for administrative complaints).
Keep a Log: Note down the frequency and timing of the calls.

Step B: File a Formal Complaint

There are three main agencies where you can seek help:

Securities and Exchange Commission (SEC):

Focuses on the lender's license to operate.
You can file a complaint via the SEC Corporate Governance and Finance Department. If an OLA is found guilty of unfair collection, they can face fines or revocation of their license.

National Privacy Commission (NPC):

Focuses on the misuse of your personal data and contact lists.
Use the NPC’s "e-Complaint" portal. The NPC has previously ordered the shutdown of several OLAs for violating privacy laws.

National Bureau of Investigation (NBI) / PNP Anti-Cybercrime Group (PNP-ACG):

Focuses on criminal liability (threats, libel, and coercion).
If the agents are threatening your life or safety, go to the nearest NBI or PNP-ACG office to file a criminal complaint.

4. Can You Be Imprisoned for Debt?

It is a fundamental principle under the 1987 Philippine Constitution (Art. III, Sec. 20) that "No person shall be imprisoned for debt." Lending apps often use "estafa" or "theft" as a scare tactic. However, simple failure to pay a contractual debt is a civil liability, not a criminal one. The only exception is if you issued a "bouncing check" (BP 22), which is a separate criminal matter.

5. Practical Tips for Immediate Relief

Change Privacy Settings: Secure your social media accounts to prevent "trolls" from finding your friends list.
Report the App: Report the OLA to the Google Play Store or Apple App Store for violating their policies on predatory lending and harassment.
Seek Legal Counsel: If the harassment is severe, a "Cease and Desist" letter from a lawyer can often stop the agents in their tracks.

Note: Avoiding payment is not the goal; the goal is to stop illegal harassment. If you owe money, you are still civilly liable, but you have the right to be treated with dignity and within the bounds of the law.

Would you like me to help you draft a formal complaint letter to the SEC or the National Privacy Commission?