The rise of Financial Technology (FinTech) in the Philippines has paved the way for Online Lending Applications (OLAs), providing quick credit to the unbanked. However, this convenience has been overshadowed by a surge in predatory practices—specifically, harassment, shaming, and the use of threats to coerce repayment.

Under Philippine law, such actions are not merely unethical; they are illegal. Below is a comprehensive guide to the legal framework and remedies available to borrowers facing these abuses.

1. The Prohibited Acts

Harassment by OLAs typically involves several distinct illegal behaviors:

Debt Shaming: Contacting people in the borrower's phone directory (family, friends, or employers) to inform them of the debt.
Threats of Violence: Explicit or implicit threats of physical harm to the borrower or their family.
False Pretenses: Threatening the borrower with immediate imprisonment (noting that the Philippines does not have a debtor's prison) or posing as government officials/law enforcement.
Invasion of Privacy: Using data obtained from the borrower's phone (photos, contacts) to blackmail or publicly humiliate them.

2. Primary Legal Frameworks

A. SEC Memorandum Circular No. 18 (Series of 2019)

The Securities and Exchange Commission (SEC) issued this circular specifically to curb unfair debt collection practices. It prohibits:

The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
The use of obscenities, insults, or profane language.
Disclosing or publishing the names of borrowers who allegedly refuse to pay.
Contacting the borrower at unreasonable hours (before 6:00 AM or after 10:00 PM), unless the debt is past due for more than 60 days.

B. The Data Privacy Act of 2012 (Republic Act No. 10173)

Most OLAs require "permissions" to access contacts and galleries. However, using this data for harassment violates the principles of transparency, legitimate purpose, and proportionality. Accessing contact lists to shame a borrower is a criminal violation of data privacy.

C. The Revised Penal Code and Cybercrime Prevention Act (RA 10175)

Harassment can escalate into criminal offenses:

Grave or Light Threats: Threatening a person with a wrong that may or may not constitute a crime.
Unjust Vexation: Any human conduct which, although not causing physical injury, causes annoyance, irritation, or mental distress.
Cyber Libel: If the OLA posts defamatory statements about the borrower on social media.

3. Step-by-Step Legal Remedies

Step 1: Document and Preserve Evidence

Legal action is only as strong as the evidence.

Screenshots: Capture all threatening text messages, emails, and social media posts.
Call Logs: Record the frequency and timing of calls.
Recordings: If possible, record phone conversations (under the Anti-Wiretapping Law, this is generally for your own protection, but consult a lawyer regarding its admissibility).
Witnesses: Get statements from friends or family members who were contacted by the OLA.

Step 2: File a Formal Complaint with the SEC

The SEC’s Corporate Governance and Finance Department (CGFD) handles complaints against lending companies.

Verify if the OLA is registered. If they are unregistered, they are operating illegally.
Submit a formal complaint via the SEC website or their email address for OLA complaints. The SEC has the power to revoke their Certificate of Authority (CA).

Step 3: File a Complaint with the National Privacy Commission (NPC)

If the OLA used your personal data (contacts/photos) to harass you, file a "Privacy Complaint" with the NPC. The NPC has previously ordered the takedown of several OLA apps for violating user privacy.

Step 4: Seek Assistance from Law Enforcement

For threats of violence or death, go to:

PNP Anti-Cybercrime Group (PNP-ACG): They specialize in crimes committed through digital means.
NBI Cybercrime Division: Useful for tracking down the physical location or the individuals behind the digital harassment.

Step 5: Barangay Conciliation

While not always effective for digital entities, if the OLA has a physical office in your vicinity, you may initiate a complaint at the Barangay level for "Unjust Vexation."

4. Common Misconceptions and Defensive Facts

"I will go to jail for not paying a loan." Article III, Section 20 of the Philippine Constitution states: "No person shall be imprisoned for debt." While you can be sued civilly for collection of a sum of money, you cannot be jailed for the simple inability to pay a debt (unless fraud or Bouncing Checks/BP 22 is involved).
"They can take my property without a court order." No private entity can "seize" your home or belongings without a court-issued Writ of Execution following a full trial.

5. Summary of Regulatory Bodies

Agency	Focus Area
SEC	Violations of lending regulations and unfair collection practices.
NPC	Unauthorized use of contacts, photos, and personal data.
PNP/NBI	Criminal threats, extortion, and cyber libel.
DTI	General consumer protection and unfair trade practices.