The rise of Financial Technology (FinTech) in the Philippines has facilitated the proliferation of Online Lending Applications (OLAs). While these platforms offer accessible credit, a significant number have engaged in predatory practices, most notably "debt shaming" and harassment. These practices involve unauthorized access to contact lists, persistent threatening messages, and the public disclosure of debt to third parties.

Victims of such harassment have several legal avenues for redress under Philippine law.

1. Violations of the Data Privacy Act of 2012 (R.A. 10173)

The most common legal weapon against OLA harassment is the Data Privacy Act (DPA). Many OLAs require users to grant access to their contacts, gallery, and social media accounts as a condition for loan approval. Using this data to harass the borrower or contact people uninvolved in the loan is a criminal offense.

Unauthorized Processing: Processing personal information for purposes other than what was declared (i.e., using a contact list to shame a borrower rather than for credit evaluation) is punishable.
Malicious Disclosure: Under Section 31, any person who, with malice or in bad faith, discloses unwarranted or false information relative to any personal information is subject to imprisonment and heavy fines.
The National Privacy Commission (NPC): Victims can file a formal complaint with the NPC. The Commission has the power to issue "Cease and Desist" orders and recommend the prosecution of OLA operators.

2. Cybercrime Prevention Act of 2012 (R.A. 10175)

When harassment occurs through electronic means (SMS, Facebook, Email), the Cybercrime Prevention Act applies.

Cyber Libel: If an OLA posts defamatory comments about a borrower on social media or sends blast messages to their contact list labeling them a "thief" or "scammer," they may be liable for Cyber Libel.
Unjust Vexation (via ICT): Harassment that causes severe emotional distress or annoyance, even if not defamatory, can be prosecuted as unjust vexation under the Revised Penal Code, with increased penalties if committed through information and communications technology.

3. SEC Regulations and the Truth in Lending Act

The Securities and Exchange Commission (SEC) is the primary regulator of lending companies in the Philippines.

SEC Memorandum Circular No. 18 (Series of 2019): This circular specifically prohibits Unfair Debt Collection Practices. Prohibited acts include:
Using threats of violence or other criminal means to harm a person’s reputation or property.
Using profane or abusive language.
Disclosing or threatening to disclose the borrower's debt information to third parties (except as permitted by law).
Contacting the borrower at unreasonable hours (e.g., between 10:00 PM and 6:00 AM).
Administrative Sanctions: The SEC can revoke the Certificate of Authority (CA) of a lending company and impose administrative fines for these violations.

4. Revised Penal Code (RPC) Violations

Beyond specialized laws, the following traditional crimes are often committed by OLA agents:

Grave or Light Threats (Art. 282/283): Threatening to harm the borrower or their family.
Grave or Light Coercion (Art. 286/287): Compelling the borrower to do something against their will, such as forcing them to borrow from another app to pay the current debt.
Compounding a Felony: Threatening a borrower with a "warrant of arrest" (which only a judge can issue) to extort payment.

Procedural Steps for Victims

A. Documentation and Evidence Gathering

To build a successful case, victims must secure:

Screenshots: Capture all threatening text messages, emails, and social media posts. Include the sender’s number or profile link.
Call Logs: Keep a record of the frequency and timing of calls.
Loan Contracts: Secure a copy of the Terms and Conditions (though these are often hidden or deceptive).
Affidavits from Witnesses: If contacts were messaged, get statements from them confirming they were contacted without consent.

B. Filing Complaints

Victims should approach the following agencies:

National Privacy Commission (NPC): For data privacy violations and "shaming" incidents.
SEC Corporate Governance and Finance Department: To report unfair debt collection practices and check if the OLA is registered.
PNP Anti-Cybercrime Group (PNP-ACG) or NBI Cybercrime Division: For criminal prosecution involving cyber libel or threats.

Conclusion on Liability

It is important to note that being a delinquent borrower is not a crime (as there is no imprisonment for debt under the Constitution). However, the methods used to collect that debt can be criminal. A borrower's failure to pay does not give the lender a license to violate their fundamental rights to privacy and dignity. Legal remedies are designed to hold these digital lenders accountable for predatory behavior.