The rise of Financial Technology (FinTech) in the Philippines has facilitated easier access to credit through Online Lending Applications (OLAs). However, this convenience has been marred by predatory practices, specifically debt collection harassment and online shaming. To combat these abuses, the Philippine government has established a robust legal framework involving several regulatory bodies.

1. Prohibited Collection Practices (SEC Memorandum Circular No. 18, s. 2019)

The Securities and Exchange Commission (SEC) issued specific guidelines to curb unfair debt collection practices. Lending and financing companies are strictly prohibited from:

Threats of Violence: Using or threatening to use physical force to harm the person, reputation, or property of the borrower.
Obscene/Profane Language: Using insults or foul language to coerce payment.
Disclosure of Names: Publicly listing the names of borrowers who are allegedly delinquent (e.g., posting on social media).
Contacting Contacts without Consent: Accessing the borrower’s phone contacts to inform them of the debt or to shame the borrower.
False Representation: Claiming to be lawyers, court officials, or government agents to intimidate the borrower.
Unreasonable Hours: Contacting borrowers between 10:00 PM and 6:00 AM, unless the debt is more than 60 days past due or the borrower gave express consent.

2. Data Privacy Violations (Republic Act No. 10173)

The Data Privacy Act of 2012 (DPA) is a primary shield against OLAs that "harvest" contact lists. The National Privacy Commission (NPC) has ruled that:

Unauthorized Processing: Accessing a borrower's contact list, gallery, or social media accounts for the purpose of harassment is a violation of the "Data Privacy Principles" (Transparency, Legitimate Purpose, and Proportionality).
Malicious Disclosure: Disclosing sensitive personal information with the intent to cause harm or shame is a criminal offense under the DPA.
NPC Circular No. 20-01: This specifically prohibits OLAs from requiring access to a borrower's contacts or social media profiles as a condition for a loan.

3. Cyberlibel and Unjust Vexation

Beyond administrative regulations, harassing OLAs can be held criminally liable under the Revised Penal Code and the Cybercrime Prevention Act of 2012 (R.A. 10175):

Cyberlibel: If an OLA posts defamatory statements about a borrower on social media or sends them to the borrower's contacts, they may be charged with Cyberlibel.
Unjust Vexation: Persistent, annoying, or coercive messages that cause mental distress to the borrower can fall under Article 287 of the Revised Penal Code.
Grave Threats/Coercion: If the agent threatens to perform a wrong or force the borrower to do something against their will (like paying an illegal interest rate under duress).

4. Regulatory Authorities and Remedies

Borrowers who fall victim to these practices have several avenues for legal recourse:

A. Securities and Exchange Commission (SEC)

The SEC can revoke the Certificate of Authority (CA) of lending companies found guilty of harassment.

Remedy: File a formal complaint with the SEC’s Corporate Governance and Finance Department (CGFD).

B. National Privacy Commission (NPC)

The NPC handles cases involving "contact list grabbing" and the unauthorized use of personal data.

Remedy: File a complaint via the NPC’s online portal. The NPC has the power to order the shutdown of apps and recommend criminal prosecution.

C. Bangko Sentral ng Pilipinas (BSP)

If the OLA is operated by a bank or a subsidiary of a bank, the BSP's Consumer Protection Department has jurisdiction.

D. National Bureau of Investigation (NBI) / PNP Cybercrime Group

For cases involving immediate threats, blackmail, or hacking, borrowers should report directly to the NBI Cybercrime Division or the Philippine National Police (PNP) Anti-Cybercrime Group.

5. Summary Table of Legal Bases

Offense	Legal Basis	Penalty
Online Shaming	SEC MC No. 18; Cybercrime Law	Fines, License Revocation, Imprisonment
Contact List Harvesting	Data Privacy Act (R.A. 10173)	Imprisonment and Multi-million Peso Fines
Harassment/Threats	Revised Penal Code; R.A. 10175	Criminal Prosecution
Unauthorized Lending	R.A. 9474 (Lending Co. Act)	Cease and Desist Orders

Legal Note: Under the Truth in Lending Act (R.A. 3765), borrowers must also be clearly informed of all interests and charges before the consummation of the loan. Failure to disclose these in a "clear and concise" manner is a violation of the law.