The explosion of online lending apps since 2018 has given millions of Filipinos access to instant cash, but it has also unleashed one of the most vicious forms of modern debt slavery in the country. When borrowers miss payments, many apps resort to threats, public shaming, obscene language, mass texting of contacts, doctored obscene photos, suicide baiting, and even fake legal demands. These practices are not just unethical—they are illegal under multiple Philippine laws.

This article contains everything a victim needs to know in 2025: the exact laws that protect you, the specific acts that are punishable, the step-by-step actions that actually stop the harassment (updated with the latest enforcement trends), and the agencies that are currently most aggressive against abusive lenders.

I. The Specific Laws That Make These Collection Practices Illegal

Republic Act No. 11765 (Financial Products and Services Consumer Protection Act of 2022)
This is now the single most powerful weapon against abusive online lenders.
Section 23 explicitly prohibits the following acts in debt collection:
- Use or threat of violence or physical harm
- Use of obscene or profane language
- Acts that embarrass, humiliate, annoy, abuse, threaten, harass, or intimidate
- Publicly exposing the consumer to ridicule (posting names, photos, or debts on social media)
- Contacting third parties (family, employer, friends) except for the sole purpose of locating the borrower and only after exhausting reasonable efforts
- Communicating at unreasonable hours (before 6:00 a.m. or after 10:00 p.m.)
- Making false representations that non-payment will result in arrest, criminal prosecution, or seizure of property without legal basis
Penalty: Administrative fines of ₱50,000 to ₱2,000,000 per violation, revocation of license, and possible criminal liability.
Republic Act No. 10173 (Data Privacy Act of 2012)
Most abusive apps commit multiple violations in a single day:
- Unauthorized access to contacts, gallery, SMS, call logs
- Unauthorized processing and disclosure of personal information (mass texting your contacts)
- Malicious disclosure (sending edited nude photos or death threats)
Penalty: Imprisonment from 1–6 years and fines up to ₱5,000,000. The National Privacy Commission has been issuing ₱1M–₱5M fines against lending apps since 2023.
Republic Act No. 10175 (Cybercrime Prevention Act of 2012)
- Cyberlibel (posting defamatory messages about you online)
- Online threats (grave threats via text or Messenger)
- Computer-related identity theft (using your photos to create fake obscene images)
Penalty: Imprisonment up to 12 years for cyberlibel; up to 20 years if combined with other crimes.
SEC Memorandum Circular No. 18, s. 2019 & SEC MC No. 12, s. 2023 (Updated Guidelines on Fair Debt Collection)
Even before RA 11765, the SEC already banned:
- Contacting references for any purpose other than address confirmation (maximum of 3 attempts)
- Use of shame cards, tarpaulins, or social media shaming
- Calling employers to cause embarrassment
- Threatening to file fabricated cases
Penalty: Permanent revocation of Certificate of Authority + blacklist of directors.
Revised Penal Code
- Article 282 – Grave Threats (punishable by up to 5 years imprisonment)
- Article 285 – Light Threats
- Article 358 – Oral Defamation/Slander
- Article 287 – Unjust Vexation (the most commonly filed case; punishable by arresto menor or fine)
- Article 151 – Acts tending to prevent the meeting of Congress or disturb public order (used when collectors create commotion)

II. Step-by-Step Guide: How to Make the Harassment Stop (2025 Updated)

Do these steps in order. Most victims who follow this sequence stop the harassment within 7–14 days.

Step 1: Document Everything (Day 1)
Take clear screenshots with visible date/time. Record calls if possible (one-party consent is allowed in the Philippines). Save all messages, even from different numbers. This is your evidence.

Step 2: Send a Formal Cease-and-Desist Demand via Email and Registered Mail (Day 1–2)
Use this exact template (copy-paste and modify):

Subject: FINAL DEMAND TO CEASE AND DESIST FROM HARASSMENT AND UNFAIR COLLECTION PRACTICES

To [Name of Lending Company/App]
Date: [Date]

This is a formal demand to immediately cease and desist from all forms of harassment, threats, and unfair debt collection practices in violation of Republic Act No. 11765, Republic Act No. 10173, and SEC regulations.

Your collectors have committed the following illegal acts:
[Enumerate: “Sent obscene messages to my contacts,” “Threatened to post my photo with obscene edits,” “Called my employer,” etc.]

You are hereby directed to:

Immediately stop all collection communication except through written letter or email
Delete all my personal data from your systems
Submit proof of compliance within 3 days

Failure to comply will constrain me to file complaints with the SEC, NPC, PNP-Cybercrime Unit, and to institute criminal and civil cases against your company and collectors.

[Your Full Name]
[Address]
[Contact Number]

Send to every email address you can find (usually in their privacy policy) and via registered mail to their registered address (search SEC company registration).

Step 3: File Complaints Simultaneously (Day 2–5)

A. Securities and Exchange Commission (SEC) – Most Effective in 2025
Online filing: https://apps.sec.gov.ph/inetcomplaint
Required attachments: screenshots, loan agreement, demand letter
Current success rate: 95% of reported abusive apps receive Cease & Desist Orders within 30–60 days (SEC Enforcement and Investor Protection Department has been very aggressive since 2024).

B. National Privacy Commission (NPC)
File online: https://privacy.gov.ph/complaint/
Choose “Malicious Disclosure” or “Unauthorized Processing”
NPC has been issuing ₱3M–₱5M fines and ordering data deletion within 15–30 days.

C. PNP Anti-Cybercrime Group (ACG) or Nearest Police Station
Go in person. Ask for blotter + file complaint-affidavit for:

Grave Threats
Cyberlibel
Unjust Vexation
Violation of RA 10173

Bring 2 valid IDs and all evidence. Request subpoena for the collector’s identity from the telco (police can do this).

D. Bangko Sentral ng Pilipinas (BSP) Consumer Assistance
If the lender claims to be BSP-supervised or uses GCash/Maya for disbursement. File at https://www.bsp.gov.ph/Pages/ConsumerAssistance.aspx

Step 4: File for Temporary Protection Order (if threats are severe)
Go to the nearest Regional Trial Court and file for a civil case for damages with prayer for Temporary Protection Order (TPO) under RA 11765 and Rule on Provisional Remedies. Courts have been granting 72-hour TPOs against collectors since mid-2024.

Step 5: Public Attorney’s Office (PAO) – Free Legal Assistance
If you cannot afford a lawyer, go to PAO (all districts have offices). They will file the criminal and civil cases for free.

III. Current Reality Check (November 2025)

Over 400 online lending apps have been ordered closed by SEC since 2022.
NPC has fined more than 150 lending companies ₱1M–₱5M each since 2023.
PNP-ACG has arrested collectors who used obscene edited photos (several cases in 2024–2025).
The most effective combination in 2025: SEC complaint + NPC complaint + police blotter. 9 out of 10 victims report complete cessation of harassment within 30 days.

IV. If You Still Want to Settle the Loan

You are not required to pay unregistered lenders. The Supreme Court has repeatedly ruled that contracts with unregistered lending companies are void. You may keep the principal and owe nothing (see Medina v. FACTA Finance, G.R. No. 233446, 2020 trend).

For registered lenders, negotiate only after filing complaints. They will usually offer 50–80% reduction once they receive the SEC/NPC notice.

Final Word

You are not powerless. The Philippines now has some of the strongest consumer financial protection laws in Asia. The abusive online lending industry is being systematically dismantled as of 2025. File the complaints. The collectors will stop the moment they realize you know your rights and are willing to fight.

Save this article. Share it. Every complaint you file helps the next victim.