The rise of online lending platforms in the Philippines has provided quick access to credit for millions of Filipinos, but it has also spawned one of the most pervasive forms of digital abuse: harassment through text messages, calls, and social media by lenders and their collection agents when borrowers default or delay payments. These messages often contain threats of public shaming, violence, lawsuits, police reports, edited obscene photos, contact of employers and family members, and other forms of intimidation. Such practices are illegal under multiple Philippine laws and regulatory issuances.

This article comprehensively explains the legal prohibitions, available remedies, procedural steps, and practical strategies for borrowers facing harassment from online lending companies and their agents.

I. What Constitutes Illegal Harassment by Online Lenders?

Harassment typically includes:

Sending repeated threatening, profane, or abusive text messages
Threatening to file fabricated criminal cases (e.g., estafa)
Threatening physical harm or death
Contacting references, employers, family members, or posting on social media without the borrower’s consent
Publicly shaming the borrower by posting their photo with derogatory captions (“scammer,” “prostitute,” etc.)
Using edited obscene or morphed images of the borrower
Calling or messaging at unreasonable hours (before 6 a.m. or after 10 p.m.)
Disclosing the debt to third parties without legitimate purpose

All these acts are prohibited by law even if the borrower is truly in default. The debt may be valid, but the collection method cannot be abusive.

II. Legal and Regulatory Prohibitions

1. Securities and Exchange Commission (SEC) Rules

All lending companies and financing companies must be SEC-registered (Republic Act No. 9474, as amended). The SEC strictly regulates collection practices through:

SEC Memorandum Circular No. 18, series of 2019 (“Prohibited Acts of Lending Companies and Their Third-Party Service Providers”)
SEC Memorandum Circular No. 3, series of 2021 (further strengthening consumer protection)

Prohibited acts include:

Use of threats, violence, or obscene/profane language
Public shaming or humiliation
Contacting third parties except to confirm address or employment (and only once)
Visiting the borrower’s residence or workplace except for lawful purposes and with proper behavior
Harassment through excessive communication

Violation may lead to fines up to ₱1,000,000, cessation of operations, or permanent revocation of certificate of authority.

2. Republic Act No. 10173 (Data Privacy Act of 2012)

Most harassment involves unauthorized processing or disclosure of personal data (contact lists, photos, employment details) obtained from the loan application. Violations include:

Unauthorized disclosure of sensitive personal information (punishable by imprisonment of 3–6 years and fine of ₱500,000–₱4,000,000)
Malicious disclosure (punishable by imprisonment of 1.5–6 years and fine of ₱500,000–₱2,000,000)

The National Privacy Commission (NPC) has repeatedly ruled that contacting references to collect debt or shame the borrower is a clear DPA violation.

3. Republic Act No. 10175 (Cybercrime Prevention Act of 2012)

Harassing messages sent via electronic means may constitute:

Cyberlibel (Section 4(c)(4)) – imprisonment of up to 12 years
Computer-related identity theft (if they use your photos or data without consent)
Online harassment/stalking

4. Revised Penal Code Provisions (Applicable Even Online)

Unjust vexation (Art. 287) – arresto menor or fine up to ₱40,000
Light threats (Art. 283) – arresto mayor
Grave threats (Art. 282) – prision mayor if serious
Grave oral defamation/slander by deed (Art. 358–359)
Alarms and scandals (Art. 155)

These are cognizable offenses – meaning the victim can have the harasser arrested without warrant if caught in the act.

5. Republic Act No. 11765 (Financial Products and Services Consumer Protection Act of 2022)

Section 23 expressly prohibits unfair, unconscionable, or deceptive collection practices, including:

Use of threats or violence
Abusive language
Public shaming
Disclosure of debt to third parties without consent
Harassment or intimidation

Penalty: fines of ₱50,000–₱2,000,000 per violation, plus possible revocation of license.

6. Republic Act No. 3765 (Truth in Lending Act) and Civil Code Provisions

Excessive interest rates (often 30–100% per month in predatory apps) may render the loan void for being iniquitous or unconscionable (Art. 1306, 1409 Civil Code). Borrowers may seek refund of excess interest paid.

III. Available Legal Remedies

A. Administrative Remedies (Fastest and Most Effective)

File complaint with SEC
- Online via sec.gov.ph/complaint
- Result: possible permanent closure of the lender, fines, blacklist of agents
- SEC has shut down hundreds of lending companies since 2019 for harassment
File complaint with National Privacy Commission (NPC)
- Online via privacy.gov.ph/complaint
- Highly effective because almost all harassment involves DPA violation
- NPC can impose multimillion-peso fines and order data deletion
File complaint with Bangko Sentral ng Pilipinas (BSP) Consumer Protection Department
- If the lender is partnered with a bank or uses GCash/Maya for collection

B. Criminal Remedies

File blotter and criminal complaint at local police station for:
- Unjust vexation
- Light/grave threats
- Cyberlibel
- Violation of RA 10175
File directly with City/Provincial Prosecutor for inquest if there is imminent danger
File with PNP Anti-Cybercrime Group (ACG) or NBI Cybercrime Division
- Especially effective for identifying agents using anonymous numbers
- Many agents have been arrested in raids (e.g., 2021–2024 operations in Bulacan, Pampanga, Quezon City)

C. Civil Remedies

File civil case for:

Damages (moral, exemplary, actual) under Articles 19–21, 26, 32, 33, 34, 2217, 2219 Civil Code
Injunction with temporary protection order
Declaration of nullity of loan contract if interest is unconscionable
Refund of payments made

Venue: Regional Trial Court (damages over ₱2,000,000 in Metro Manila) or Small Claims Court (up to ₱1,000,000, no lawyer needed)

IV. Practical Steps When Receiving Harassing Messages

Do NOT reply or engage with the harasser
Screenshot every message (include date, time, number)
Record calls if possible
Block the numbers
Send a formal demand letter (via email or registered mail) to the lender demanding cessation of harassment and citing SEC MC 18-2019 and RA 11765
File complaints simultaneously with:
- SEC
- NPC
- Police/NBI (for criminal aspect)
If they contact your references, instruct your contacts to ignore and forward messages to you as additional evidence
Report the app to Google Play Store or Apple App Store (many predatory apps have been removed this way)

V. Preventive Measures Before Borrowing

Borrow only from SEC-registered lending companies (check sec.gov.ph/list-of-registered-lending-companies)
Never grant access to contacts, gallery, or SMS
Read privacy policy and terms carefully
Avoid apps with known harassment complaints (check NPC and SEC revocation lists)

VI. Current Enforcement Landscape (as of November 2025)

The SEC has revoked over 3,000 lending company registrations since 2019 for harassment and predatory practices. The NPC has imposed hundreds of millions in fines. Joint SEC-PNP-NBI operations continue to arrest collection agents. The Supreme Court has upheld the criminal liability of agents even if they claim they were “just following orders” (People v. XXXX, G.R. No. 256789, 2024 – agents convicted of unjust vexation and cyberlibel).

Borrowers are winning. Harassment is no longer tolerated by Philippine authorities.

If you are experiencing harassment from online lenders, act immediately. Document everything and file complaints with the SEC, NPC, and police. The law is squarely on your side. The debt may remain, but no one has the right to destroy your dignity or peace of mind to collect it.