I. Overview: The Problem with Online Lending Apps

The growth of online lending apps (OLAs) in the Philippines has given millions of Filipinos quick access to credit—but it has also spawned a wave of harassment, “shaming,” and abusive collection tactics:

Threatening messages and calls, sometimes every few minutes
Text blasts to a borrower’s family, employer, and contacts calling them “scammer” or “criminal”
Use of edited photos, insults, and slurs posted or threatened to be posted online
Misleading threats about arrest or criminal cases for simple non-payment of a loan

These practices are not just unethical; many are illegal under Philippine law. This article explains:

The legal framework governing online lending and collections
What acts constitute harassment and collection abuse
The remedies available (administrative, civil, and criminal)
Step–by–step actions borrowers can take
Preventive and longer-term measures

This is general information and not a substitute for specific legal advice. For serious or ongoing abuse, it is best to consult a lawyer or approach the Public Attorney’s Office (PAO), Integrated Bar of the Philippines (IBP), or legal aid groups.

II. Legal and Regulatory Framework

A. Who Regulates Online Lending Apps?

Securities and Exchange Commission (SEC)
- Regulates lending companies (organized under the Lending Company Regulation Act) and financing companies (under the Financing Company Act).
- OLAs offering loans to the public must be registered with the SEC and must have the proper Certificate of Authority to operate as a financing or lending company.
- SEC also issues rules on online lending, including prohibitions on unfair debt collection practices.
Bangko Sentral ng Pilipinas (BSP)
- Regulates banks, digital banks, and some e-money issuers and payment system operators.
- If the app is actually a bank, or the loan is extended by a bank, BSP regulations on responsible lending and fair collection practices apply.
National Privacy Commission (NPC)
- Enforces the Data Privacy Act of 2012 (DPA, Republic Act No. 10173).
- Handles complaints when OLAs harvest contacts, photos, and personal data, and use them for “shaming” or harassment.
- Can issue compliance orders, recommend criminal charges, and impose sanctions.
Other Authorities
- PNP Anti-Cybercrime Group (PNP-ACG) and NBI Cybercrime Division: when threats, libel, and other crimes are committed online.
- Courts: for civil actions (damages, injunctions) and criminal cases.

B. Key Laws Applicable to Harassment and Collection Abuse

1. Data Privacy Act of 2012 (RA 10173)

OLAs often require permissions such as access to contacts, photos, and files. The DPA requires that:

There is valid consent from the data subject for collection and processing of personal data.
Processing must be proportionate and related to a legitimate purpose.
Personal data must be processed under principles of transparency, legitimate purpose, and proportionality.

Abusive behavior that may violate the DPA includes:

Accessing a borrower’s phonebook and sending texts to all contacts revealing the alleged debt.
Using a borrower’s photo, ID, or other data to create defamatory posts or messages.
Continuing to use and disclose data even after the purpose of processing (e.g., verification of identity) has been met.

The DPA provides:

Criminal liability for unauthorized processing, unauthorized disclosure, and improper disposal of personal information.
Administrative sanctions (fines, compliance orders, etc.) via NPC.

2. Financial Products and Services Consumer Protection Act (RA 11765)

RA 11765 establishes rights of financial consumers and obligations of providers, including:

Right to fair and respectful treatment
Protection from unfair, abusive, or unconscionable acts or practices, including in collection
Requirements for transparent pricing, proper disclosures, and appropriate handling of complaints

Under this law and its implementing rules:

Financial service providers (including OLAs under SEC/BSP supervision) must not harass, oppress, or abuse borrowers.
Regulators can investigate, order corrective actions, impose penalties, and suspend or revoke licenses for violators.

3. SEC Rules on Unfair Debt Collection Practices

The SEC has issued memoranda/circulars that specifically prohibit abusive collection tactics by lending and financing companies.

Typical prohibited acts include (paraphrased in general terms):

Using threats, violence, or obscene language
Humiliating or publicly shaming the borrower, including contacting the borrower’s contacts or employer to reveal the debt
Making false criminal accusations or threats of arrest when the case is purely civil
Contacting borrowers at unreasonable hours or excessively
Misleading borrowers about the amount owed, fees, and legal consequences

Violations may cause:

Fines and administrative sanctions
Suspension or revocation of the lender’s authority to operate
Inclusion in SEC public advisories as abusive or unregistered lenders.

4. Revised Penal Code and Related Criminal Laws

Harassment by OLAs may amount to criminal offenses, including:

Grave Threats / Light Threats – When collectors threaten to harm the debtor, their property, or reputation.
Grave Coercion – Forcing someone to do or not do something (e.g., pay an amount not actually owed) through violence or intimidation without lawful authority.
Libel – Defamatory statements communicated to the public, including sending messages to contacts or posting on social media to ruin the borrower’s reputation.
Unjust Vexation – Repeated, unreasonable disturbance or annoyance.
Alarm and Scandal – When conduct causes public disturbance.

Under the Cybercrime Prevention Act (RA 10175), crimes like libel, threats, and identity theft committed through information and communication technologies can carry higher penalties.

5. Other Potentially Relevant Laws

Lending Company Regulation Act of 2007 (RA 9474) Requires registration and a Certificate of Authority; prohibits unlicensed lending and allows SEC enforcement.
Financing Company Act of 1998 (RA 8556) Similar framework for financing companies.
Truth in Lending Act (RA 3765) Requires lenders to disclose the true cost of borrowing, interest rates, and charges.
Safe Spaces Act (RA 11313) If the harassment involves gender-based online sexual harassment, obscene sexual remarks, or gender-based attacks, this law may also apply.

III. Common Abusive Practices by Online Lending Apps (and Why They’re Illegal)

Below are common patterns and the corresponding legal issues.

“Shaming” Through Contacts
- App accesses borrower’s contact list.
- Sends mass messages to family, friends, employers saying the borrower is a “scammer,” “criminal,” or “wanted.” Legal issues:
- Possible Data Privacy Act violations (unnecessary processing and disclosure; excessive data use).
- Possible libel if statements are defamatory and untrue or grossly exaggerated.
- Possible unfair debt collection under SEC rules and RA 11765.
Threats of Arrest, Police, or Imprisonment for Non-Payment
- Collectors claim they will send “warrant of arrest,” “subpoena” within hours, or “coordinate with NBI” purely for non-payment of a simple loan. Legal reality:
- Simple non-payment of civil debt is not criminal in the Philippines.
- Only when there is an independent criminal act (e.g., estafa, bouncing check, etc.) can there be criminal liability. Legal issues:
- Misrepresentation and intimidation may constitute grave coercion, unjust vexation, or fraudulent/abusive practice under RA 11765 and SEC rules.
Use of Insults, Obscene Language, and Personal Attacks
- Voice calls or chats containing curses, slurs, or threats against the person’s family. Legal issues:
- Violation of unfair debt collection rules.
- Possible unjust vexation, grave threats, or grave coercion.
- If online and widely disseminated, may be cyber-libel.
Unauthorized Use of Photos and IDs
- Lender uses the victim’s selfie and ID to create “wanted” posters or posts, threatening to upload on Facebook, TikTok, or send to contacts. Legal issues:
- Violates Data Privacy Act (unjustified processing and disclosure of personal data).
- Could form basis for libel, unfair collection, and privacy complaints.
Harassment at Work or School
- Contacting the borrower’s employer, HR, colleagues, or school to pressure them to pay. Legal issues:
- Can be harassment and unfair collection under SEC rules and RA 11765.
- May violate privacy and result in reputational damage, which can be the basis of civil damages and/or criminal complaints.

IV. Legal Remedies and Where to File Complaints

A. National Privacy Commission (NPC) – For Data Privacy Violations

When to complain:

When an app accessed your contacts, photos, messages, or other personal data and used them:
- To send messages to your contacts
- To create or threaten “shaming” posts
- In ways beyond what you reasonably consented to

What NPC can do:

Order the company to stop the abusive processing or disclosure.
Direct them to delete unlawfully obtained data.
Impose administrative fines or other sanctions.
Recommend criminal prosecution under the DPA.

What you need to prepare:

Full name and contact details
name of the app/company
Detailed narration: timeline, specific incidents
Screenshots of:
- Consent screens/permissions
- Harassing messages and calls
- Messages sent to your contacts
Any proof that the app accessed and used your contact list or personal data.

B. Securities and Exchange Commission (SEC) – For Lending/FInancing Apps

When to complain:

Online lender is:
- Not registered or has no Certificate of Authority; or
- Registered, but using abusive or unfair collection practices (shaming, threats, etc.).

Possible actions by SEC:

Issue show-cause orders, suspend or revoke licenses.
Publish advisories warning the public.
Coordinate with law enforcement for further action.

Documents to attach:

ID of complainant
App name, screenshots of its profile in app store, and any SEC-related information it displays
Screenshots of abusive messages and calls
Any proof of payment and statements of account

C. Bangko Sentral ng Pilipinas (BSP) – For Banks and BSP-Supervised Entities

If the app is operated by a bank, digital bank, or e-money issuer, or clearly states that the lender is a BSP-supervised institution, you may:

File a complaint through the bank’s internal complaint-handling system, and
Elevate to BSP through its consumer assistance channels if unresolved.

BSP can order corrective measures and impose sanctions on supervised entities for unfair collection and harassment.

D. Police, NBI, and Cybercrime Units – For Criminal Acts

For threats, libel, extortion, and other crimes, you may:

File a criminal complaint with:
- Local PNP station (especially PNP Anti-Cybercrime Group for online cases); or
- NBI Cybercrime Division.
Bring:
- Valid ID
- Phone with messages, call logs, and recordings (if any)
- Printouts/screenshots of chats, texts, and online posts
- Any proof of loan (receipts, app screenshots, contract)

Authorities will evaluate if there is probable cause for crimes like grave threats, grave coercion, libel, unjust vexation, and cybercrime offenses.

E. Civil Actions – For Damages and Injunction

You may file a civil case for:

Moral damages (for mental anguish, social humiliation)
Exemplary damages (to deter similar acts)
Possibly actual damages (lost job, lost business, etc.)

You may also ask the court for injunctive relief (temporary restraining order or injunction) to stop further harassment, especially if the lender is posting or threatening to post defamatory content.

Civil suits can be time-consuming and costly, so they are usually considered for serious or high-impact cases, often with legal assistance.

V. Practical Step–by–Step Actions for Borrowers

Step 1: Preserve Evidence

Before anything else:

Do not delete abusive messages or chats.
Take clear screenshots showing:
- Sender’s number/name or app
- Date and time
- Content of the message
Record calls (if legally permissible and safe).
Ask family/friends who received messages to screenshot and forward them.

Evidence is critical for NPC, SEC, BSP, and law enforcement.

Step 2: Secure Your Phone and Accounts

Revoke the app’s permissions:
- On your phone, go to Settings → Apps → [App Name] → Permissions and disable access to Contacts, SMS, Storage, Camera, etc.
If safe and after preserving evidence, you may uninstall the app.
Change passwords for email, banking apps, and social media if you suspect compromise.

Note: Removing the app will not erase your loan obligation, but may help stop further data harvesting.

Step 3: Communicate in Writing and Ask for Proper Statements

If you genuinely owe money:

Send a polite written message or email to the lender asking for:
- A complete statement of account (principal, interest, penalties, fees).
- Their registered corporate name and regulatory registration (SEC/BSP).
- A formal repayment plan or restructuring if you are unable to pay in full.

This shows good faith, which can help later, and also exposes lenders who refuse to identify themselves properly.

Step 4: File Regulatory and/or Criminal Complaints

Depending on the conduct, you may do one or more of the following:

NPC complaint – if contacts, photos, or personal data were misused.
SEC/BSP complaint – if lender is abusive, or unregistered.
Criminal complaint – if there are serious threats, libel, or coercion.

You can file with multiple bodies at once; these processes are independent but complementary.

Step 5: Consider Legal Assistance

Public Attorney’s Office (PAO) – for qualified indigent clients.
Integrated Bar of the Philippines (IBP) chapters – sometimes offer free legal aid.
Law school legal aid clinics – may help with documentation and complaints.

A lawyer can help:

Assess whether to file civil and/or criminal cases
Draft formal demand letters and complaints
Represent you before agencies and in court

VI. Sample Structures for Letters and Complaints

A. Demand / Complaint Letter to the Lender

You can adapt along these lines:

Heading and Details
- Your name, address, contact details
- Date
- Name of company / app, address or email
Subject: Complaint on Harassment and Abusive Collection Practices
Body:
- Identify the loan: amount, date, reference number.
- Acknowledge the loan (if you truly owe it) and explain your situation if relevant.
- Describe the abusive acts: dates, messages, screenshots.
- State that these acts violate your rights under the Data Privacy Act, RA 11765, SEC rules, and relevant criminal laws.
- Demand that they:
  - Cease and desist from harassment and shaming
  - Stop contacting your family, employer, or contacts
  - Limit communications to reasonable, professional channels
- Request a written statement of account and formal avenue for dispute resolution.
Closing
- State that failure to comply may prompt you to file complaints with NPC, SEC/BSP, and law enforcement.
- Sign and keep a copy.

B. Complaint Outline for NPC or SEC

Complainant’s Details
Respondent’s Details (company/app name, any data you have)
Facts of the Case – chronological narration with dates
Evidence – list attached screenshots, recordings, etc.
Legal Basis – cite Data Privacy Act / RA 11765 / SEC rules in general terms
Relief Sought – what you are asking for (stop harassment, delete data, penalize respondent, etc.)

VII. What About the Underlying Debt?

It is crucial to understand:

Harassment and abuse are illegal, but they do not automatically erase a legitimate debt.
You remain legally obliged to pay the principal and any lawfully agreed interest and charges that are not unconscionable or illegal.
However:
- Unconscionable interest or fees may be reduced or struck down by courts.
- Illegally operating lenders (e.g., unlicensed) may face sanctions; in some situations, courts may treat their contracts differently, but the debt may still be recognized as an obligation.

When negotiating:

Ask for waiver or reduction of excessive interest and penalties.
Propose a realistic installment plan.
Keep all payments documented (receipts, transaction confirmations).

VIII. Preventive Measures and Long-Term Protection

Check if the Lender is Legitimate
- Avoid OLAs that do not clearly show their company name, address, and SEC/BSP registration.
- Be cautious of apps asking for extensive permissions (contacts, SMS, storage) that are not necessary.
Read Privacy Policies and Terms (At Least the Key Parts)
- How will they use your data?
- Do they say they may contact your contacts? That’s a red flag.
Limit Permissions
- On Android/iOS, you can deny access to Contacts, SMS, and Files and still use many apps.
- If the app refuses to work unless it can access everything, consider not using it.
Borrow Only What You Can Pay
- OLAs are often high-interest and short-term, designed to be rolled over.
- Try to treat them as last resort rather than first option.
Encourage Reporting
- Sharing information (safely and truthfully) and filing formal complaints help regulators build cases against abusive apps, which can lead to suspensions and shutdowns.

IX. Summary

Harassment and “shaming” by online lending apps in the Philippines can violate multiple laws, including the Data Privacy Act, Financial Products and Services Consumer Protection Act, SEC/BSP rules, and criminal laws on threats, coercion, and libel.
Borrowers are not powerless: they can document abuse, secure their devices, complain to NPC/SEC/BSP, and pursue criminal or civil actions where appropriate.
While harassment is illegal, it does not erase lawful debt—but it can justify regulatory sanctions and claims for damages.
The most effective long-term solution combines individual action (complaints and evidence) with strong enforcement by regulators and law enforcement, and more careful use of OLAs by consumers.

If you’d like, I can help you draft a customized complaint letter or affidavit-style narration based on a specific situation (with names and details anonymized if you prefer).