The proliferation of Online Lending Applications (OLAs) in the Philippines has brought both financial inclusion and a surge in predatory practices. While these platforms provide quick access to credit, many employ "debt-shaming" tactics and unauthorized data processing that violate Philippine laws. This article outlines the legal framework and the specific actions victims can take against such entities.

1. Relevant Legal Frameworks

Several key laws and regulations govern the operations of OLAs and protect borrowers from harassment and privacy breaches:

Republic Act No. 10173 (Data Privacy Act of 2012): This is the primary law protecting personal information. It prohibits the unauthorized processing, malicious disclosure, and improper disposal of personal data.
Republic Act No. 3765 (Truth in Lending Act): Requires lenders to provide full disclosure of the cost of credit (interest, fees, etc.) prior to the consummation of the transaction.
NPC Circular No. 20-01: Issued by the National Privacy Commission (NPC), this specifically prohibits OLAs from accessing a borrower's contact list or photo gallery for the purpose of debt collection or harassment.
SEC Memorandum Circular No. 18 (Series of 2019): Provides the "Prohibition on Unfair Debt Collection Practices," explicitly banning threats, profanity, and the public shaming of borrowers.
The Revised Penal Code and Cybercrime Prevention Act (RA 10175): Covers crimes such as Libel, Cyber-libel, and Grave Threats.

2. Common Violations and Prohibited Acts

Under the regulations set by the Securities and Exchange Commission (SEC) and the NPC, the following actions are strictly prohibited:

Harassment and Unfair Collection

Using threat of force or other criminal means to harm the person, reputation, or property of any person.
Using insults, profane language, or "debt-shaming" (e.g., posting the borrower's debt on social media).
Threatening to take any action that cannot legally be taken.
Contacting persons in the borrower's contact list who are not co-makers or guarantors.

Data Privacy Violations

Contact List Crawling: Accessing the borrower’s phone contacts to inform them of the borrower’s indebtedness.
Unauthorized Disclosure: Sharing the borrower's personal information with third parties without consent.
Accessing Photos/Files: Using sensitive personal information or media to blackmail or coerce the borrower.

3. Steps to Take for Legal Redress

Step 1: Documentation and Evidence Gathering

Before filing a formal complaint, victims must secure proof of the harassment or violation:

Screenshots: Capture text messages, social media posts, or emails containing threats or shaming.
Call Logs: Document the frequency and timing of harassing calls.
Loan Contracts: Keep copies of the terms and conditions and the disclosure statements.
NPC/SEC Registration: Check if the OLA is registered. Many predatory apps operate without a Certificate of Authority (CA).

Step 2: File a Complaint with the NPC

If the issue involves data privacy (e.g., they called your boss or messaged your friends), file a complaint with the National Privacy Commission.

Process: Submit a formal complaint via the NPC website or email. The NPC has the power to issue "Cease and Desist" orders and recommend the removal of the app from the Google Play Store or Apple App Store.

Step 3: File a Complaint with the SEC

If the issue involves unfair collection practices or if the OLA is unregistered, contact the SEC Corporate Governance and Finance Department.

Process: Fill out the SEC’s online complaint form for OLAs. The SEC can revoke the OLA's license to operate and impose administrative fines.

Step 4: Criminal Prosecution

If the harassment constitutes Cyber-libel or Grave Threats, victims may seek assistance from:

PNP Anti-Cybercrime Group (PNP-ACG)
NBI Cybercrime Division (NBI-CCD)
Department of Justice (DOJ): To file formal criminal charges.

4. Summary Table of Remedies

Violation Type	Primary Agency	Possible Outcome
Data Privacy/Contact Leaks	National Privacy Commission (NPC)	Fine, Deletion of data, App takedown
Unfair Collection/Harassment	Securities & Exchange Commission (SEC)	Revocation of license, Admin fines
Cyber-libel / Threats	PNP-ACG / NBI-CCD	Imprisonment, Criminal records
Excessive Interest/Hidden Fees	SEC / Bangko Sentral ng Pilipinas	Refund of excess fees, Penalties

5. Defensive Measures for Borrowers

Revoke App Permissions: Go to phone settings and disable the app’s access to contacts, gallery, and location.
Privacy Settings: Set social media profiles to private to prevent collectors from harvesting friend lists.
Verify Legitimacy: Always check the SEC List of Licensed Lending Companies before borrowing. If an app is not on the list, it is operating illegally.