Legal Remedies for Harassment by Lending Companies in the Philippines

Disclaimer This article is for informational purposes only and does not constitute legal advice. Laws and regulations change, and individual circumstances vary. Consult a qualified Philippine lawyer or the appropriate government agency for advice on your specific situation.

1. The Legal and Regulatory Framework

Key Law / Issuance	Scope & Highlights
Republic Act (RA) No. 9474 – Lending Company Regulation Act of 2007	Requires all lending companies to register with the Securities and Exchange Commission (SEC); imposes criminal penalties for operating without a licence; authorises the SEC to revoke licences for unsafe or unfair practices.
SEC Memorandum Circular (MC) No. 18, s. 2019 – Prohibition on Unfair Debt Collection Practices	Enumerates specific acts considered harassment, e.g. public humiliation, threats of violence, use of profane language, calling between 10 p.m. and 6 a.m., contacting persons in the borrower’s contact list, and misrepresenting that non‑payment is a criminal offence.
RA 11765 – Financial Products and Services Consumer Protection Act (2022)	Extended consumer‑protection powers to the SEC and Bangko Sentral ng Pilipinas (BSP); recognises harassment as an unsafe or unsound practice; permits administrative fines up to ₱2 million per transaction plus a daily penalty.
RA 10173 – Data Privacy Act of 2012 (DPA)	Penalises unauthorised processing, over‑collection, or illegal sharing of personal data (e.g., scraping a borrower’s contact list). National Privacy Commission (NPC) may impose fines up to ₱5 million and recommend criminal prosecution (imprisonment up to 6 years).
RA 3765 – Truth in Lending Act & RA 7394 – Consumer Act	Require clear, honest disclosure of true cost of borrowing; undisclosed charges or misrepresentation can be actionable as unfair or deceptive practice.
Revised Penal Code (RPC)	Harassing collectors may commit Grave Threats (Art. 282), Light Threats (Art. 283), Unjust Vexation (Art. 287), Grave Coercion (Art. 286), or Libel/Slander (Arts. 355‑358) if defamatory posts are published online.
Supreme Court Writs (Habeas Data, Amparo, etc.)	The Writ of Habeas Data can compel deletion of illegally obtained personal information and prevent further data misuse.

2. What Counts as “Harassment”?

Under SEC MC 18‑2019 and jurisprudence, harassment includes:

Persistent, excessive, or threatening calls/texts e.g. ringing your phone every 5 minutes or calling overnight.
Public or social‑media shaming (“utang‑shaming”) Posting your face or debt details on Facebook, group chats, company bulletin boards, etc.
Contacting relatives, friends, co‑workers without your written consent.
False representations
- Saying you will be arrested for non‑payment (ordinary debts are civil, not criminal).
- Claiming to be an attorney or a government officer when the caller is not.
Use of profanity, threats of bodily harm, or gender‑based insults.
Imposing illegal fees or interest beyond what was disclosed in the loan contract.

3. Remedies: Where and How to Seek Relief

3.1 Administrative Remedies

Forum	Who Can File	What Can Happen
Securities and Exchange Commission (SEC) – Enforcement and Investor Protection Department	Borrower or any aggrieved person	• Show‑cause orders, suspension or revocation of the lending company’s licence, fines up to ₱2 million per count plus daily penalty
• Cease‑and‑desist orders within 48 hours for clear cases
• Referral to DOJ for criminal prosecution
National Privacy Commission (NPC)	Data subject (borrower)	• Compliance orders to stop data misuse
• Direction to delete contact lists harvested by the app
• Administrative fines and criminal referral
Bangko Sentral ng Pilipinas (BSP) – for banks & BSP‑licensed financing companies	Borrower	• Monetary penalties; directive to refund fees; suspension of officers
Department of Trade and Industry (DTI) – for certain consumer loans / Buy‑Now‑Pay‑Later schemes	Borrower	• Closure orders, fines, mediation under Consumer Act

Procedure with the SEC (typical):

File a sworn complaint (50‑peso documentary stamp) stating facts, enclosing evidence (screenshots, call logs, voice recordings, loan agreement).
SEC issues a Notice to Explain to the lender.
After evaluation or hearing, SEC may issue a cease‑and‑desist order (CDO) if public interest so requires.
Final Decision/Order may impose fines, revoke licence, and direct referral to prosecutors.

3.2 Criminal Remedies

Offence	Law & Penalty
Operating without SEC licence	RA 9474, Sec. 12 – ₱100,000‑₱1 million fine + 4‑20 years imprisonment
Unfair debt‑collection prohibited acts	RA 9474 & SEC MC 18 – fines & imprisonment as above
Illegal processing or misuse of personal data	RA 10173 – ₱500,000‑₱5 million + 1‑6 years imprisonment
Libel, Slander, Grave Threats, Grave Coercion	RPC – imprisonment up to 6 years (libel) or 6 years & 1 day‑12 years (grave threats)
Cyber‑libel	RA 10175 – one degree higher than libel (up to 8 years imprisonment)

How to file:

Execute a Police Blotter (nearest PNP station or Anti‑Cybercrime Group).
File a complaint‑affidavit at the Office of the City/Provincial Prosecutor.
Digital evidence must be authenticated (Rule on Electronic Evidence).

3.3 Civil Remedies

Damages under Articles 19, 20 & 21 of the Civil Code (abuse of rights, acts contrary to morals and good customs).
Injunction / Temporary Restraining Order (TRO) to stop further harassment.
Exemplary damages to deter similar conduct.
Attorney’s fees (Art. 2208).

3.4 Special Protective Writs and Orders

Remedy	When Useful
Writ of Habeas Data	Lender illegally accessed your phone contacts or photos; you want the data deleted and further processing stopped.
Barangay Protection Order / Court Protection Order under RA 9262 (VAWC)	Harasser’s conduct involves violence or threats against a woman or her child.
Anti‑Cybercrime search‑and‑seizure warrant	Needed by law enforcement to seize devices or servers used in cyber harassment.

3.5 Alternative Dispute Resolution (ADR)

Mediation under SEC Rules or BSP’s Consumer Assistance Mechanism can resolve many disputes quickly.
Small Claims Court (Rule of Procedure for Small Claims) for money not exceeding ₱400,000; judge‑led mediation possible.

4. Evidence Gathering and Preservation

Take screenshots of messages, app notifications, caller IDs (show date & time).
Record calls (under Philippine law, at least one‑party consent is enough if you are that party).
Save voicemails and emails in original format (EML, WAV).
Download a copy of the lending app’s privacy policy and terms of service.
Keep receipts and payment records to disprove false “past‑due” amounts.
Have digital evidence notarised or execute a Judicial Affidavit to authenticate.

5. Jurisdiction and Venue

Claim / Case	Where to File
SEC complaint	SEC Main Office (Pasay) or Extension Offices (Cebu, Davao, Tarlac, Legazpi, Baguio, Iloilo)
NPC complaint	NPC office in Quezon City (email filing allowed)
Criminal complaint	Office of the Prosecutor where the threat or libellous post was received or where it was uploaded
Civil action for damages	Regional Trial Court where plaintiff resides or where defendant resides
Small claims	First‑level court where plaintiff resides

6. Special Issues with Online Lending Apps

App Permissions: Many apps require blanket access to contacts, photos, SMS. Under the DPA and NPC Advisory Opinion 2017‑01, such “over‑collection” is unlawful unless strictly necessary and consent is freely given, specific, informed and evidenced.
“Utang‑Shaming” Pages: Even sharing a borrower’s photo to a private Facebook group is public disclosure of private facts (libel) and a data breach.
Interest‑Rate Caps: For loans up to ₱10,000 and terms under four months, BSP Circular 1133‑2021 caps the effective interest at 6% per month and 0.5% per day penalty. Charging more can be raised in any SEC or BSP complaint.
Cross‑Border Entities: Many rogue apps are incorporated abroad but target Filipinos. The SEC can geo‑block such apps and issue Blocking Orders to Google/Apple stores; complainants should flag this in their affidavits.

7. Practical Tips for Borrowers

Communicate in writing. Ask collectors to email you a detailed statement.
Offer a payment plan in writing; courts treat good‑faith offers favourably.
Revoke consent in writing for any further processing of your contacts.
Inform your HR (if threatened with employer calls) so they know the law.
Don’t delete apps or chats immediately—preserve evidence first.
Check if the lender is SEC‑registered (public list on sec.gov.ph; unregistered = illegal).
Consult a lawyer early. Demand letters from counsel often end harassment quickly.
Coordinate with other victims. Class or group complaints carry more weight with regulators.

8. Conclusion

Harassment by lending companies is not a mere inconvenience—it is an actionable wrong that can trigger administrative, criminal, and civil liabilities under Philippine law. The SEC, NPC, BSP and the courts provide overlapping layers of protection:

Administrative sanctions swiftly stop abusive collection.
Criminal prosecution punishes egregious threats and data‑privacy crimes.
Civil actions compensate victims and deter future misconduct.

By understanding the full menu of remedies—from filing an SEC complaint to seeking a Writ of Habeas Data—borrowers can protect their dignity, privacy, and legal rights while still honouring legitimate loan obligations.