In the Philippines, the relationship between a debtor and a creditor is governed by the principle that while a debt remains a valid obligation, the methods used to collect it must remain within the bounds of law and human dignity. Debtors are not stripped of their civil rights simply because they are unable to pay.

When collection practices transition from persistent reminders to harassment, threats, or shaming, they may violate specific Philippine laws and administrative regulations.

1. The Core Regulation: SEC Memorandum Circular No. 18 (2019)

The Securities and Exchange Commission (SEC) issued Memorandum Circular No. 18, Series of 2019, which provides the most direct protection against "Unfair Debt Collection Practices." This applies specifically to financing and lending companies.

Prohibited Acts Under the Circular:

Threats of Violence: Using or threatening to use physical force, violence, or other criminal means to harm the person, reputation, or property of the debtor.
Obscene/Profane Language: Using insults or foul language to coerce payment.
Disclosure of Information: Publishing or threatening to publish a list of "delinquent" debtors (debt-shaming).
Misrepresentation: Falsely claiming to be a lawyer, a government official, or a representative of a court to intimidate the debtor.
Contacting at Unreasonable Hours: Contacting the debtor before 6:00 AM or after 10:00 PM, unless the debt is past due for more than 60 days or the debtor has given express consent.
Contacting Third Parties: Contacting the debtor’s friends, family, or employer, except for the purpose of locating the debtor and only if such contact does not involve disclosing the debt.

2. Criminal Liability Under the Revised Penal Code

Harassing debt collection practices can often cross the line into criminal conduct. Depending on the severity of the actions, a creditor or collection agent may be liable for:

Grave or Light Coercion: This occurs when a person, without authority of law, prevents another from doing something not prohibited by law, or compels them to do something against their will (e.g., forcing a debtor to sign over property under threat).
Grave or Light Threats: If the collector threatens the debtor with a wrong amounting to a crime (e.g., "I will burn your house down if you don't pay"), they can be prosecuted for threats.
Unjust Vexation: A "catch-all" provision for conduct that irritates, vexes, or disturbs the mind of another person without necessarily causing physical harm.
Libel/Slander: If the collector publicly shames the debtor or spreads false information to ruin their reputation (including "debt-shaming" on social media), they may be liable under the Cybercrime Prevention Act of 2012.

3. The Data Privacy Act of 2012 (RA 10173)

Modern debt harassment often involves the misuse of personal data, especially by online lending applications (OLAs).

Unauthorized Access: Accessing a debtor’s phone contacts, gallery, or social media accounts to harass their network is a violation of the Data Privacy Act.
Processing for Unauthorized Purposes: Personal data provided for a loan application cannot be used to harass or shame the individual.
National Privacy Commission (NPC) Actions: The NPC has the power to shut down lending apps and recommend criminal prosecution for entities that "dox" or harass debtors through their private information.

4. Fundamental Constitutional Protections

It is a cornerstone of Philippine Law, specifically found in Article III, Section 20 of the 1987 Constitution, that:

"No person shall be imprisoned for debt or non-payment of a poll tax."

This means that a person cannot be sent to jail simply because they lack the money to pay a purely civil obligation. However, this does not protect individuals from criminal charges related to the manner in which the debt was incurred, such as:

Estafa (Fraud): Using deceit or false pretenses to obtain money.
B.P. 22 (Bouncing Checks Law): Issuing a check without sufficient funds.

5. Remedies and Steps for Debtors

If a debtor is experiencing illegal harassment, several legal avenues are available:

Agency	Type of Complaint
SEC	For violations of MC No. 18 by lending/financing companies.
National Privacy Commission	For "debt-shaming," data breaches, or contact list hacking.
Philippine National Police (PNP)	For physical threats, coercion, or harassment.
Small Claims Court	While this is for collecting money, it provides a legal venue for settling disputes without needing a lawyer for the hearing itself.

Summary of Rights

Right to Privacy: Debtors have the right to keep their financial troubles private from employers and social circles.
Right to Respectful Treatment: Debtors cannot be subjected to abusive or derogatory language.
Right to Due Process: Creditors must go through the proper legal channels (filing a civil case) rather than resorting to "self-help" or intimidation.