Lending Company Harassment Before Due Date (Philippines): A Complete Guide

Scope: Philippine law and practice; applies to banks, lending/financing companies, micro-lenders, and online lending apps (OLAs) operating in the Philippines or offering loans to Philippine residents.

1) Why “pre-due-date” harassment matters

Contacting a borrower before the agreed due date to “remind” them is not automatically illegal. But aggressive, repetitive, misleading, or shaming conduct—especially when there is no default yet—can violate multiple Philippine laws. It can also expose lenders and their agents (including third-party collectors and call centers) to civil, administrative, and even criminal liability.

Key idea: No default = no collection right yet. A lender’s rights are limited to what the contract and the law allow. Even after default, the manner of collection must be lawful, fair, and respectful of privacy and dignity.

2) The legal framework (what rules apply)

A. Contract & Civil Code principles

Freedom of contract allows reasonable payment reminders if disclosed and consented to.
Abuse of rights / human relations (Civil Code Arts. 19, 20, 21): even if a right exists, it must be exercised with justice, good faith, and fairness. Abusive collection tactics can give rise to damages (moral, exemplary, and actual).

B. Data Privacy & confidentiality

Data Privacy Act of 2012 (DPA): personal data must be processed lawfully, fairly, and transparently, only for a specific, declared purpose, and proportionately.
Common violations in collections:
- Using a borrower’s phone contact list or social media connections to shame or pressure payment.
- Disclosing the borrower’s loan or balance to family, employer, or references without a lawful basis.
- Over-collection of data (e.g., scraping contact lists) not necessary for loan administration.
Rights: to be informed, to object, to access/correct, to erasure/blocking, and to damages for unauthorized or excessive processing.

C. Financial consumer protection

Financial Consumer Protection Act (FCPA, 2022) and sector rules (Bangko Sentral ng Pilipinas for banks; Securities and Exchange Commission for lending/financing companies) prohibit unfair, abusive, or deceptive acts or practices.
“Unfair” includes harassing, oppressing, or abusing a borrower in connection with the collection of a debt, including when the debt is not yet due, if the act tends to mislead, coerce, or cause undue distress.

D. Criminal law exposure

Depending on the behavior, a collector may commit:

Grave threats / light threats (Revised Penal Code) for messages implying harm.
Grave coercion for compelling an act against one’s will through violence, intimidation, or threat.
Unjust vexation for needless harassment or disturbance.
Libel / slander for public shaming posts or mass texts accusing the borrower of being a “scammer,” etc.
Anti-Wiretapping issues if calls are recorded without the consent required by law.

E. Regulatory enforcement

SEC (for lending/financing companies & OLAs): registration oversight, app takedowns, fines, suspension/revocation, and orders against unfair collection practices (e.g., public shaming, threats, contact-list harvesting).
BSP (for banks and their third-party collectors): customer assistance mechanisms, sanctions for unfair practices.
National Privacy Commission (NPC): investigates DPA breaches; can order cease-and-desist, data deletion, and administrative fines; may recommend criminal prosecution.

3) What counts as harassment before due date

Potentially unlawful even pre-due-date:

Public shaming: mass texts, group chats, Facebook posts, tagging friends/employer, or messaging contacts to brand the borrower as “delinquent” or “fraud” before the due date.
Excessive frequency: repeated calls or messages (e.g., dozens per day) that cause distress or disrupt work/school.
False urgency or deception: “Your account is already in default,” “We will sue/raid/arrest you today,” when not true.
Contacting third parties: reaching out to references, colleagues, HR, or family who are not co-borrowers or guarantors, especially disclosing loan details.
Threats: harm to person, property, employment, or immigration status; or fabricated “blacklist” threats.
Unconsented data use: scraping contacts, location, photos, or files, or demanding unnecessary IDs/documents not required for KYC.
Workplace interference: calling office trunklines or supervisors to pressure payment or embarrass.
Misusing consent clauses: relying on vague boilerplate to justify shaming or contact-list blasts—consent must be specific, informed, time-bound, and proportionate.

Usually permissible pre-due-date (if reasonable and disclosed):

A limited courtesy reminder via the borrower’s chosen channel (e.g., SMS/email/app notification) within reasonable hours, without pressure or disclosure to others.
A neutral statement of amount and due date, no threats, no public exposure, no misleading claims.

4) Rights of borrowers

To dignity and fair treatment: No abuse, intimidation, or shaming.
To privacy: No disclosure to third parties without lawful basis.
To accurate information: No deceptive or premature “default” notices.
To limit collection channels: You may specify preferred contact methods/hours; lenders should honor reasonable limits.
To access and control data: Request what data is held, how it is used; demand deletion of non-essential or unlawfully obtained data (e.g., scraped contacts).
To complain and seek redress: With the lender, regulator (SEC/BSP), and NPC; and through civil/criminal actions.

5) Practical response plan (step-by-step)

Document everything
- Save screenshots of texts/chats, call logs, voicemails, social posts, and any messages to third parties.
- Note dates/times, phone numbers, account names, and the fact that the due date hasn’t arrived yet.
Send a calm, written notice (email/app/chat)
- State the loan number, due date, and that no default exists.
- Direct them to cease harassing conduct, limit contact to your preferred channel/hours, and stop contacting third parties.
- Invoke the Data Privacy Act: withdraw any blanket consent for contact-list use; demand deletion of unlawfully collected data.
Escalate internally
- Use the lender’s Consumer Assistance or complaints desk. Ask for a ticket/case number and keep copies.
Report externally (as applicable)
- SEC: for lending/financing companies and OLAs (unfair collection, public shaming, unregistered apps).
- BSP: for banks or their collectors (unfair/deceptive practices).
- NPC: for privacy breaches (contact-list blasts, disclosures).
- PNP/DOJ: for threats, libel, coercion, unjust vexation, or cybercrime.
- Platform reports: flag abusive accounts/pages with screenshots (Facebook, Messenger, SMS spam reports).
Consider legal remedies
- Civil damages under Civil Code Arts. 19/20/21 for abuse of rights and privacy violations.
- Injunction (to stop shaming/harassment) in urgent cases.
- Criminal complaints if threats or defamation occurred.
Protect your digital footprint
- Revoke app permissions; remove contact-list access; change passwords.
- Ask contacts to forward any third-party messages they receive for your evidence file.

6) Special issues with Online Lending Apps (OLAs)

Permissions: Apps that demand access to contacts, photos, microphone, or location for “credit risk” are high-risk. These are usually disproportionate for small consumer loans.
Third-party messaging: Any bulk messaging to your contacts is a red flag and likely a DPA violation.
Unregistered OLAs: Operating without proper registration can lead to SEC actions; borrowers can report them and use that context in complaints.

7) For employers, schools, and references

You have no obligation to disclose an employee’s/student’s details to a collector who calls or messages.
If a collector discloses loan information to you, that disclosure itself may be unlawful. Keep a record; your institution may file a complaint with the borrower or regulators.

8) Frequently asked questions

Q1: Can they call or text me every day before due date? Reasonable reminders are allowed; persistent, disruptive, or threatening messages can be unfair or abusive—more so pre-due-date.

Q2: Can they message my spouse/parents/boss before due date? Generally no, unless that person is a co-borrower/guarantor or you gave specific, informed consent for that exact purpose. Even then, disclosure must be minimal.

Q3: The contract says they can contact my references. Doesn’t that allow mass shaming? No. Consent must be specific and proportionate; blanket clauses don’t authorize public shaming or disclosure of sensitive financial data.

Q4: Can they threaten criminal cases if I “might” be late? Threats of arrest or criminal prosecution for mere non-payment of a civil debt are improper. (Criminal liability may arise only for separate crimes like estafa with deceit, not simple inability to pay.)

Q5: What if I already paid but they keep hounding me? Send proof of payment; demand correction and deletion of erroneous data; escalate and, if needed, claim damages for continued harassment.

9) Templates you can adapt

A. Cease & Desist / Privacy Notice (short form)

Subject: Account # [Loan No.] — Cease Harassing Conduct / Data Privacy

I am not in default. My due date is [date]. Your repeated [calls/texts/messages] and outreach to third parties are unnecessary and abusive.

Under the Civil Code and the Data Privacy Act, I withdraw any alleged blanket consent for accessing or using my contact list and demand that you stop contacting third parties and limit communications to [email/number], weekdays 9am–6pm only.

If this conduct continues, I will report it to [SEC/BSP/NPC] and consider legal action for damages.

Please confirm compliance within 48 hours.

Name / Loan No. / Contact

B. NPC data complaint (bullet points to include)

Identity of entities (lender, collector, app).
What data they accessed/used (contacts, messages), when, and how often.
Evidence of disclosure to third parties.
Harm suffered (reputation, workplace disruption, anxiety).
Requests: cease-and-desist, deletion, sanctions, and damages.

10) Evidence checklist

Screenshots (with visible dates/times).
Copies of messages to your contacts.
Call logs; voicemail recordings (observe consent rules).
Loan agreement (highlight due date and communications clauses).
Your written complaints and their replies.
Any platform takedown or report receipts.

11) Compliance notes for lenders & collectors (best practices)

No third-party contacts before due date, and only minimal/necessary after default.
One pre-due courtesy reminder per channel; avoid early-morning/late-night pings.
No threats, no false claims, no “blacklist” scare tactics.
Data minimization: don’t request or store contact lists; segregate and secure borrower data.
Maintain a complaints desk with ticketing and prompt resolution.
Train staff on FCPA, DPA, Civil Code abuse-of-rights, and defamation risks.

12) Bottom line

Pre-due-date “reminders” must be limited, accurate, and respectful.
Harassment or public shaming—especially involving third parties—is unlawful and exposes collectors to administrative sanctions, civil damages, and potential criminal liability.
Borrowers should document, demand, escalate, and, if needed, file complaints. Lenders should design compliant workflows that respect privacy and dignity at every stage.

This article is for general information and is not a substitute for tailored legal advice. If harassment is severe or ongoing, consult a Philippine lawyer to assess civil and criminal remedies and urgent relief (e.g., injunctions or protective orders).