Legal Remedies for Harassment by Loan-App Collectors in the Philippines (2025 update)
1. The problem in a nutshell
Since 2016 hundreds of smartphone “online lending platforms” (OLPs) have offered unsecured micro-loans in minutes. When borrowers fall behind, some collectors scrape contact lists and bombard relatives or co-workers with threat-laced texts, doctored photos or public Facebook posts. In 2024 the National Privacy Commission (NPC) said complaints against OLPs still rank among its top five caseload drivers, while the Securities and Exchange Commission (SEC) has now revoked or suspended more than 70 licences for unfair collection practices. (Respicio & Co., National Privacy Commission)
2. The statutory & regulatory armoury
| Layer | Key issuances | Core protection | Top-end penalty |
|---|---|---|---|
| Licensing & conduct | RA 9474 (Lending Company Regulation Act) + RA 8556 (Financing Act) + SEC MC 18-2019 & MC 3-2022 | 13 specific acts outlawed (violence, obscene language, debt-shaming, contacting persons other than borrower/guarantor, midnight calls, etc.) | ₱25 000 – ₱2 000 000 per offense per day; licence revocation (Respicio & Co.) |
| Financial-consumer law | RA 11765 (Financial Products and Services Consumer Protection Act, 2022) + BSP Circulars 1160-2022, 1169-2023 | Declares abusive collection an unsafe practice; empowers SEC/BSP/IC/CDA to order disgorgement, restitution, director disqualification | Up to ₱2 M/day administrative fine; adjudication of claims ≤ ₱10 M (ACCRALAW) |
| Data privacy | RA 10173 (Data Privacy Act) + NPC Circular 20-01 (2020, amended 2023) | Bans harvesting of contacts or photos for debt-shaming, any disclosure without lawful basis | 3-6 yrs + ≤ ₱4 M (unauthorised processing); up to 7 yrs + ≤ ₱5 M for malicious disclosure (National Privacy Commission) |
| Cyber-offences | RA 10175 (Cybercrime Prevention Act) | Cyber-libel, cyber-threats, unauthorised access | Penalty one degree higher than offline counterpart (Lawphil) |
| Penal Code | Art. 282 (Grave threats), Art. 286 (Grave coercion), Art. 287 (Unjust vexation), Art. 353/355 (Libel) | Criminal prosecution; arrest & imprisonment | Arresto menor to prisión mayor + fine (HG.org) |
| Civil Code | Art. 19-21, Art. 26 (right to privacy) | Cause of action for damages, injunction against vexing or humiliating acts | Actual, moral & exemplary damages; TRO/preliminary injunction |
Pending bills. HB 6776 / SB 1366 (“Fair Debt Collection Practices Act”) seek to criminalise debt-shaming outright and mandate joint SEC-NPC takedown of non-compliant apps; both were on second-reading status as of May 2025. (Respicio & Co.)
3. Who can help and what they can do
| Forum | Typical orders the agency may issue | How to start |
|---|---|---|
| SEC – Enforcement & Investor Protection Dept. | ▸ Cease-and-desist order (CDO) ▸ Licence revocation ▸ ₱ fines/day ▸ Director/officer disqualification | Online complaint form or e-mail with screenshots, loan contract & ID. (Inquirer Business) |
| NPC – Complaints & Investigation Division | ▸ Temporary ban on data processing ▸ Order to delete data ▸ Monetary penalty up to ₱5 M | e-Complaint + verified affidavit under NPC Rules of Procedure. |
| BSP – Consumer Assistance Mechanism (CAM) | ▸ Mediation ▸ Adjudication (claims ≤ ₱10 M) ▸ Restitution / refund orders | First exhaust lender’s help-desk; then file CAM form if unresolved. |
| PNP Anti-Cybercrime Group / NBI Cybercrime | ▸ Arrest & prosecution for threats, cyber-libel, identity theft | Sworn statement + digital evidence at any cybercrime office. |
| Civil courts | ▸ Damages (Art. 26, Art. 32 Civil Code) ▸ TRO/ injunction | Verified complaint; if claim ≤ ₱ 400 000 may use Small-Claims procedure. |
4. What counts as “harassment” under SEC MC 18-2019
- Threat or use of violence or any criminal act
- Obscene, profane or insulting language
- Public or social-media shaming (posting borrower’s face or debt)
- False representation as lawyer, police or court officer
- Telling anyone other than borrower/guarantor about the debt
- Contacting the borrower outside 9 a.m.–5 p.m. (extended to 9 p.m. by MC 3-2022)
- Continuous ringing or robocalls intended to annoy
- Charging amounts not in the contract
- False legal threats (“NBI arrest”, “immigration hold”)
- Using photos or data scraped from the device for collection …and three other catch-all deceptive or retaliatory acts. (Respicio & Co.)
5. Step-by-step enforcement playbook for borrowers
Document everything. Save screenshots, call logs, envelopes, threats; note date, time and numbers used. This is your best evidence. (RESPICIO & CO.)
Send a cease-and-desist (optional). Through counsel, demand the collector stop illegal tactics; attach MC 18-2019 as reference.
File an online complaint first.
- SEC if the lender appears in the SEC’s list of licensed Financing/Lending Companies.
- NPC if the harassment involves use or disclosure of contacts, photos or sensitive data.
- BSP if the collector is a bank, electronic-money issuer or digital bank.
Escalate to criminal charges when threats, obscenity or defamation cross the line—unjust vexation, libel or grave threats have short processing times at inquest.
Consider civil damages when reputational harm or psychological distress is substantial (Art. 26, Art. 2219 Civil Code). TROs can be obtained ex parte when harassment is continuous.
Report fake or unregistered apps directly to Google Play or the Apple App Store; both stores now require proof of SEC registration to stay listed. (Respicio & Co.)
6. Recent enforcement snapshots (2023-2025)
- Surity Cash – licence cancelled March 4 2025 after 190 complaints of “disrespectful” SMS; SEC found repeated breaches of MC 18-2019. (Inquirer Business)
- Populus (Pesopop) – NPC 2023 decision imposed a temporary data-processing ban for forcing users to surrender contact lists before loan approval.
- JuanHand and CashAB – earlier CDOs remain in force; repeat finding of debt-shaming via doctored Facebook posts. (National Privacy Commission, Appointment)
7. Borrower defences & obligations
- Good faith payment offers help: refusal by the lender to accept a reasonable instalment plan can weigh against it in SEC or BSP adjudication.
- Right to prepay – RA 11765 secures the right to prepay a loan without penalty except disclosed fees. (ACCRALAW)
- Legitimate debt still must be paid. Non-payment can still lead to civil or small-claims suits; what the law prohibits is abusive collection.
8. Looking ahead
Congress is poised to harmonise a stand-alone Fair Debt Collection Practices Act that will, for the first time, impose criminal sanctions on individual collectors who debt-shame, and will grant the SEC and NPC joint geo-blocking powers over rogue apps. In the meantime, the combined teeth of RA 11765, SEC MC 18-2019 and the Data Privacy Act already give harassed borrowers multiple, fast-acting remedies. The key is to document early and file with the right forum.