The Philippines has seen a dramatic rise in complaints about abusive, harassing, and unlawful debt-collection practices, especially from lending companies, financing firms, and online lending apps. Borrowers are frequently subjected to threats, public shaming, non-stop calls at odd hours, disclosure of the debt to employers and relatives, and even veiled death threats. Many of these practices are outright illegal.

Below is a comprehensive guide (updated as of December 2025) on the legal rights of borrowers/debtors under Philippine law and the remedies available when collectors cross the line.

I. Governing Laws and Issuances

Republic Act No. 3765 – Truth in Lending Act
Requires full disclosure of finance charges. Violation is a ground for complaints with the BSP or SEC.
Republic Act No. 7394 – Consumer Act of the Philippines
Articles 1992 law that protects consumers against deceptive, unfair, and unconscionable sales acts or practices.
Republic Act No. 10175 – Cybercrime Prevention Act of 2012
Online shaming, cyber-libel, and use of communication devices to threaten or harass can fall here.
Republic Act No. 10173 – Data Privacy Act of 2012
Lenders and collectors may not disclose personal and sensitive personal information (debt status, contact numbers of references, etc.) without lawful purpose and consent.
Republic Act No. 10870 – Philippine Credit Card Industry Regulation Law (2016)
Section 15 expressly prohibits threatening phone calls, intimidation, and the use of obscenities or profanities.
Republic Act No. 11765 – Financial Products and Services Consumer Protection Act (2022)
The newest and strongest law to date.
- Section 6 lists prohibited acts (threats of violence, use of obscenities, repeated calls intended to annoy/abuse/harass, public shaming, etc.).
- Section 15 creates a private right of action: the borrower can file a civil case for damages (actual, moral, exemplary) plus attorney’s fees even without prior demand.
- Criminal penalties: imprisonment of 6 months to 7 years and/or fine of ₱50,000 to ₱2,000,000.
Revised Penal Code
- Art. 282 – Grave threats
- Art. 283 – Light threats
- Art. 287 – Unjust vexation
- Art. 358 – Slander by deed (public shaming)
BSP Circular No. 1133 (2021) and Circular No. 1163 (2023)
Rules on fair debt collection for banks and their third-party collectors. Prohibits calls outside 8:00 a.m.–7:00 p.m., more than 3 calls per week, contacting third parties except to get address/phone, threats, etc.
SEC Memorandum Circular No. 18, series of 2019 and SEC MC No. 3, s. 2022
Almost identical prohibitions for financing/lending companies and online lending platforms under SEC supervision.

II. What Debt Collectors Are Absolutely NOT Allowed to Do

Prohibited Act	Legal Basis
Call before 8:00 a.m. or after 7:00 p.m.	BSP Circ. 1133, SEC MC 18, RA 11765
Call the borrower more than 3 times a week	BSP Circ. 1133, SEC rules
Call the borrower’s employer, relatives, friends except to get updated address/phone	RA 10173 (Data Privacy), RA 11765
Post the borrower’s name/photo on Facebook or “shaming lists”	RA 10173, RA 11765, Revised Penal Code
Threaten to file criminal cases (estafa, BP 22) when they have no intention or basis	Grave/light threats, unjust vexation
Threaten physical harm or death	Grave threats (Art. 282 RPC)
Use obscene or profane language	RA 11765, RA 10870
Tell the employer that the employee will be jailed if debt not paid	Libel, unjust vexation, RA 11765
Visit the borrower’s house with “goons” or in a threatening manner	Grave coercion, alarm & scandal

III. Step-by-Step Remedies When You Are Harassed

Document everything
- Screenshot messages, record calls (one-party consent is allowed for your own protection), save emails, note dates/times/names of collectors.
Send a written cease-and-desist letter (registered mail + email)
Cite RA 11765, BSP/SEC circulars, and demand they stop contacting third parties and limit communication to reasonable hours. Keep proof of sending.
File complaints (you can do several at the same time):

a. National Privacy Commission (NPC)
For illegal processing/disclosure of personal data (₱5 million max penalty per violation).

b. Bangko Sentral ng Pilipinas (BSP) Consumer Protection Dept.
If the lender is a bank or its collector.

c. Securities and Exchange Commission (SEC)
For financing companies and online lending apps (SEC has been suspending/revoking licenses left and right since 2022).

d. PNP Anti-Cybercrime Group (PNP-ACG) or NBI Cybercrime Division
If there are threats of violence or online shaming.

e. Barangay for mediation (for small amounts)
Though most collectors ignore barangay summons.
File criminal cases in the Prosecutor’s Office
- Unjust vexation
- Grave/light threats
- Violation of RA 11765 (the police/investigator can file this in court directly in many cities).
File a civil case for damages under RA 11765 Section 15
No need to wait for criminal case to finish; you can sue for moral/exemplary damages + attorney’s fees. Many courts now award ₱50,000–₱300,000 in moral damages per borrower in clear-cut harassment cases.
File an administrative case against the collector’s license (if a lawyer or a licensed collector).

IV. Special Notes on Online Lending Apps

Since 2020, the SEC has revoked or suspended more than 3,000 online lending platforms for harassment and predatory practices.
Even if the app is no longer registered, the individual collectors can still be sued criminally and civilly.
Interest rates above 6% per month are generally considered unconscionable and may be reduced by the court (Art. 1308 & 1413, Civil Code; Medel v. CA doctrine).

V. Sample Demand/Cease-and-Desist Letter (short version)

[Your Name & Address]
[Date]

[

[Name of Lending Company]
[Address]

Via registered mail and email

Sir/Madam:

I am the borrower of Loan Reference No. ______. Your collectors have been calling me and my contacts outside allowed hours, threatening to post my photo online, and using profane language. These acts violate Republic Act No. 11765, BSP Circulars, and SEC regulations.

I demand that you CEASE AND DESIST from all forms of harassment and limit communication to writing or calls only between 8:00 a.m. and 7:00 p.m., not more than three (3) times per week.

Failure to comply within three (3) days will constrain me to file criminal, civil, and administrative cases against your company and your collectors.

Very truly yours,
[Your Name]

VI. Recent Landmark Cases (2023–2025)

People v. Collector (Quezon City MTC 2024) – collector sentenced to 4 years imprisonment for grave threats via text.
SEC v. Certain Online Lending Apps (2023–2025) more than 500 apps permanently banned and officers charged with syndicated estafa and RA 11765 violations.
Civil awards of ₱100,000–₱500,000 moral damages have become common in Regional Trial Courts when clear screenshots/recordings are presented.

Conclusion

Debt payment is a civil obligation; no one can be jailed for mere unpaid loans (except issued bouncing checks or court-ordered support). Aggressive collectors rely on fear and ignorance. Once borrowers know their rights under RA 11765, the Data Privacy Act, and BSP/SEC rules, most harassment stops immediately upon receipt of a well-written demand letter or the filing of complaints.

If you are experiencing aggressive collection today, document, send the cease-and-desist letter, and file the appropriate complaints without delay. The law is now clearly on the side of the harassed borrower.