In the digital age, the proliferation of Online Lending Applications (OLAs) has revolutionized access to credit in the Philippines. However, this convenience has been overshadowed by a surge in illegal debt collection practices. Borrowers often find themselves victims of harassment, shaming, and privacy violations that go far beyond standard collection efforts.

If you or someone you know is experiencing this, it is crucial to understand that Philippine law provides specific protections and clear avenues for recourse.

1. What Constitutes Illegal Harassment?

The Securities and Exchange Commission (SEC), through Memorandum Circular No. 18 (Series of 2019), defines unfair debt collection practices. Prohibited acts include:

Threats of Violence: Any threat to use physical force against the borrower, their reputation, or their property.
Obscene/Profane Language: Using insults or foul language to intimidate the borrower.
Disclosure of Personal Information: Publicizing the borrower's name as a "scammer" or "delinquent" on social media.
Contacting People Not Involved: Contacting individuals in the borrower’s contact list who are neither co-makers nor guarantors.
Misrepresentation: Falsely claiming to be a lawyer, police officer, or government official to coerce payment.
Unreasonable Contact Hours: Calling or messaging between 10:00 PM and 6:00 AM, unless the borrower agreed otherwise.

2. The Triad of Redress: SEC, NPC, and PNP ACG

Depending on the nature of the violation, victims should approach three primary government agencies:

A. The Securities and Exchange Commission (SEC)

The SEC regulates the operations of lending and financing companies.

Purpose: To report violations of the Lending Company Regulation Act and the Financial Products and Services Consumer Protection Act (FCPA).
Action: The SEC can revoke the "Certificate of Authority" of an OLA, effectively shutting them down.
How to File: Use the SEC’s online complaint portal or email the Corporate Governance and Finance Department (CGFD).

B. The National Privacy Commission (NPC)

Many OLAs gain unauthorized access to a borrower's phone contacts, gallery, and social media.

Purpose: To report violations of the Data Privacy Act of 2012 (RA 10173).
Action: The NPC can issue "Cease and Desist" orders and recommend criminal prosecution for unauthorized processing of personal information.
Key Violation: "Contact Tracing" or "Contact Indexing" for the purpose of debt-shaming is a severe breach of privacy law.

C. PNP Anti-Cybercrime Group (PNP ACG)

When harassment escalates to criminal acts, the police must step in.

Purpose: To report Cyber-Libel, Grave Threats, and Unjust Vexation committed through digital platforms.
Action: They conduct entrapment operations and forensic investigations to identify the physical location of the harassers.
Requirement: Ensure you have screenshots of the messages, the phone numbers used, and the links to any social media posts.

3. Step-by-Step Guide to Filing a Complaint

Document Everything: Take screenshots of all threatening messages, call logs, and social media posts. Do not delete them.
Verify the OLA: Check the SEC website to see if the lending app is a registered entity. If they are not registered, they are operating illegally.
Draft a Formal Letter: State the facts clearly—the date the loan was taken, the amount, and specific instances of harassment.
Submit to the SEC/NPC: Use their official websites. For the NPC, you must often show that you attempted to resolve the issue with the OLA’s "Data Protection Officer" first, if applicable.
Report to the PNP ACG: Visit the nearest Cybercrime office (usually located in Regional Police Offices) to file an official affidavit.

4. Important Legal Reminders

"No one goes to jail for non-payment of debt." Under Article III, Section 20 of the Philippine Constitution, no person shall be imprisoned for debt. While you still owe the money and can be sued civilly (for collection of sum of money), you cannot be arrested simply because you cannot pay.

However, the harassment committed by the lenders is a criminal offense. You can be the one to file a case against them.

Next Steps

Would you like me to draft a formal complaint letter template that you can use to submit to the SEC or the National Privacy Commission?