I. Introduction

The explosive growth of online lending applications in the Philippines since 2017 has provided millions of unbanked and underbanked Filipinos with quick access to credit. However, this convenience has come at a steep cost for many borrowers who fall into default. Numerous lending apps—both registered and unregistered—have engaged in systematic harassment, including death threats, public shaming, dissemination of morphed obscene photos, mass messaging to all contacts in the borrower’s phone, and relentless calls at all hours. These practices constitute clear violations of multiple Philippine laws on consumer protection, data privacy, financial consumer rights, cybercrime, and human dignity.

This article comprehensively discusses the legal framework governing online lending apps, the specific acts that constitute harassment, the available administrative, civil, and criminal remedies, and practical steps borrowers can take to seek redress and protection.

II. Regulatory Framework Governing Online Lending Apps

Securities and Exchange Commission (SEC) Regulation
- All entities engaged in lending or financing activities as a business must register with the SEC as lending companies or financing companies under Republic Act No. 9474 (Lending Company Regulation Act of 2007) and its IRR.
- SEC Memorandum Circular No. 19, s. 2019 expressly applies to online lending platforms and prohibits abusive, unethical, and oppressive collection practices.
- SEC Memorandum Circular No. 12, s. 2023 further strengthened disclosure requirements and prohibited the use of altered or obscene images in collection efforts.
Republic Act No. 11765 – Financial Products and Services Consumer Protection Act (2022)
This is currently the most borrower-friendly law. Key provisions relevant to harassment:
- Section 13 expressly prohibits unfair, unconscionable, and deceptive debt collection practices, including:
  - Use of threats of violence, criminal prosecution, or obscene/indecent language
  - Public shaming or humiliation
  - Contacting third parties (family, employer, friends) except for legitimate location purposes and only after exhausting reasonable efforts to contact the borrower
  - Disclosure of the debt to unauthorized persons
- Section 14 mandates fair debt collection practices and respect for consumer dignity.
- Violations are punishable by administrative fines of ₱50,000 to ₱2,000,000 per violation and possible cease-and-desist orders or license revocation.
Republic Act No. 10173 – Data Privacy Act of 2012
Almost all harassment by lending apps involves data privacy violations:
- Unauthorized access to phone contacts, gallery, SMS, and other data
- Processing of personal and sensitive personal information without valid consent
- Disclosure of personal information to third parties without lawful basis
- Use of personal photos to create morphed obscene images
  National Privacy Commission (NPC) Circular No. 2022-04 specifically identifies common violations committed by online lending apps and imposes fines up to ₱5,000,000 per violation.
Republic Act No. 10175 – Cybercrime Prevention Act of 2012
- Cyberlibel (Section 4(c)(4)) – when apps or collectors post defamatory statements or edited obscene photos online
- Computer-related identity theft (Section 4(b)(3)) – using borrower’s photos without consent
- Online threats and intimidation fall under grave threats, grave coercion, or unjust vexation when committed through electronic means.
Revised Penal Code Provisions (applicable via RA 10175)
- Article 282 – Grave threats
- Article 285 – Light threats
- Article 287 – Unjust vexation
- Article 353 – Libel (elevated to cyberlibel when done online)
- Article 358 – Slander by deed (public humiliation)
Republic Act No. 3765 – Truth in Lending Act
Requires full disclosure of finance charges. Many apps hide effective interest rates exceeding 100–500% per annum, constituting another ground for complaint.
Republic Act No. 7394 – Consumer Act of the Philippines
Articles 50–62 prohibit deceptive sales acts and practices, including false advertising of interest rates and hidden charges.

III. Acts That Constitute Illegal Harassment by Lending Apps

The following practices are routinely declared illegal by the SEC, NPC, DOJ, and courts:

Sending death threats or threats of physical harm
Creating and distributing morphed obscene or nude photos of the borrower or family members
Mass texting or calling all contacts in the borrower’s phone to shame the borrower
Posting the borrower’s photo and debt details on social media or “loan shark” pages
Calling the borrower’s employer to cause termination or embarrassment
Using profane, obscene, or indecent language
Calling at unreasonable hours (before 7:00 a.m. or after 8:00 p.m.)
Threatening to file fabricated criminal cases (e.g., estafa)
Disclosing medical, financial, or other sensitive information to third parties

IV. Available Legal Remedies and Actions

A. Administrative Remedies (Fastest and Most Effective)

Complaint with the Securities and Exchange Commission (SEC)
- File online via SEC eSPARC or email enforcement@sec.gov.ph
- Required attachments: screenshots, borrower agreement, proof of harassment
- Possible outcomes: cease-and-desist order, revocation of certificate of authority, fines, public naming and shaming of the app, coordination with NTC to block the app/website
- As of 2025, the SEC has revoked over 500 lending company registrations and caused the blocking of thousands of illegal apps.
Complaint with the National Privacy Commission (NPC)
- File online at complaints@privacy.gov.ph or via the NPC Complaints Portal
- NPC can impose fines up to ₱5M and order the deletion of all borrower data
- NPC has issued multiple cease-and-desist orders against lending apps and their data processors.
Complaint under RA 11765 Financial Consumer Protection Mechanism
- File directly with the SEC (for non-bank lenders) or BSP (if bank-partnered)
- The law mandates resolution within 45 days and provides for compensation or debt condonation in meritorious cases.

B. Criminal Complaints

File a complaint-affidavit with the Office of the City/Provincial Prosecutor or directly with the PNP Anti-Cybercrime Group (ACG) for:

Cyberlibel
Unjust vexation
Grave/light threats
Violation of RA 10173 (carries imprisonment of up to 7 years)
Use of fictitious accounts or identity theft

The Department of Justice issued Department Circular No. 013, s. 2023 directing prosecutors to give due course to criminal complaints arising from online lending harassment.

C. Civil Action for Damages

File a civil case for:

Moral damages (₱100,000–₱1,000,000 typical awards)
Exemplary damages
Attorney’s fees
Actual damages (e.g., medical expenses for trauma, lost income)

Landmark cases (as of 2025):

Several Regional Trial Courts have awarded ₱300,000–₱500,000 in moral damages against collectors who used morphed nude photos.
The Supreme Court in G.R. No. 258323 (2024) upheld the award of ₱1,000,000 in damages for systematic online lending harassment involving public shaming.

V. Practical Steps for Borrowers Facing Harassment

Immediately stop communicating with the collector through the app’s channels.
Take screenshots of all threats, messages, and calls (use call recording apps if legal in your jurisdiction).
Send a formal demand letter via email or registered mail ordering the lender to cease harassment and delete your data.
File simultaneous complaints with SEC, NPC, and (if threats are severe) the PNP-ACG.
Block the app’s access to contacts, gallery, and SMS (though often too late).
Never pay “processing fees” to settle—many are scams.
Report the app on Google Play Store or Apple App Store for policy violations (many have been removed this way).

VI. Conclusion

Harassment by online lending apps is not merely “aggressive collection”—it is a serious violation of multiple criminal and civil laws in the Philippines. With the strong consumer protection framework provided by RA 11765, the Data Privacy Act, and active enforcement by the SEC and NPC, borrowers are no longer helpless. Victims who document the harassment and file prompt complaints almost invariably obtain relief, including deletion of their data, permanent blocking of the app, and substantial monetary awards.

The law is firmly on the side of the harassed borrower. Silence only emboldens predators. Speak up, file the complaints, and seek justice.