This is general legal information in the Philippine context and not a substitute for advice from your own lawyer.

1. The Problem: How Loan Apps Harass Borrowers

Many online lending applications (“loan apps”) in the Philippines have been reported to:

Bombard borrowers and their contacts with calls and messages
Use insults, humiliating words, and name-calling
Threaten physical harm or “home visits”
Threaten to “blast” photos and personal information on Facebook or group chats
Send messages to employers, family, and friends calling the borrower “scammer,” “criminal,” or “wanted”
Charge excessive penalties and threaten arrest if not paid immediately
Access phone contacts, photos, and messages far beyond what is necessary to process the loan

Important distinction: You still owe a legitimate loan if you borrowed money, but collecting a debt does not give a lender the right to harass, threaten, or shame you. Harassment can create criminal, civil, and administrative liability for the lender and its collectors.

2. Legal Framework Governing Loan App Harassment

Several laws and regulations can apply when loan apps harass or threaten borrowers:

2.1 Civil Code of the Philippines

Key provisions:

Article 19 – Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith.
Article 20 – Every person who, contrary to law, wilfully or negligently causes damage to another, shall indemnify the latter.
Article 21 – Any person who wilfully causes loss or injury in a manner contrary to morals, good customs, or public policy shall compensate the injured party.
Article 26 – Protects the privacy and dignity of a person, including against:
- Prying into the privacy of another’s residence
- Meddling with private life
- Vexing or humiliating another on account of his **religion, lowly station in life, place of birth, physical defect, or debt
- Similar acts that cause moral or mental suffering

These provisions are commonly used as basis for civil actions for damages against abusive collectors and lending companies.

You can claim:

Moral damages (for mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, social humiliation)
Exemplary damages (to set an example and deter similar conduct)
Attorney’s fees and litigation expenses

2.2 Revised Penal Code (RPC): Criminal Acts

Abusive collection can cross into criminal behavior under the RPC, especially when threats, insults, or false accusations are involved.

Some potentially relevant crimes:

Grave Threats (Art. 282)
- Threatening another with a wrong amounting to a crime (e.g., “We will kill you,” “We will burn your house,” “We will kidnap your child”)
- Punishable even if the threat is made by phone, messages, or online.
Light Threats / Other Threats (Arts. 283, 285)
- Threats that may not amount to a serious crime but still cause fear or intimidation.
Grave Coercion (Art. 286)
- Preventing a person, by violence, threats, or intimidation, from doing something not prohibited by law, or compelling them to do something against their will.
- Example: forcing you to pay immediately under threat of public shame, posting edited photos, or harassing your employer, when other lawful collection means exist.
Unjust Vexation / Light Coercions (Art. 287)
- Annoying or vexing acts that cause irritation or distress without lawful justification—often used as catch-all for harassment.
Libel and Slander (Arts. 353, 355, 358)
- Libel (written, printed, online) and slander (spoken) require:
  - Imputation of a discreditable act, condition, or crime
  - Publication to a third person (your contacts, employers, social media posts)
  - Malice (presumed in many cases)
- Calling you “scammer,” “thief,” “criminal” in messages sent to your contacts can qualify as libel/slander.

2.3 Cybercrime Prevention Act (RA 10175)

If the harassment happens online (Facebook posts, group chats, messages sent via internet-based apps, online “shaming” posts, etc.), RA 10175 can apply.

Cyber libel – Libel committed through a computer system or the internet.
Penalties can be higher than for traditional libel.
Posting your photo, name, and calling you a “scammer” on social media is a typical scenario.

2.4 Data Privacy Act of 2012 (RA 10173)

Many loan apps require access to your:

Contacts
Photos
SMS/Call logs
Location

They often use this data to shame you—by sending messages to your contacts or using your photo in threats.

Under RA 10173:

Personal information must be collected fairly, for a specific purpose, and only as necessary.
Use of your data beyond the stated purpose or beyond what is reasonably necessary may be unauthorized processing.
Sharing your personal information (name, debt, amount owed) with your contacts or online without your lawful consent or proper basis can amount to:
- Unauthorized disclosure
- Malicious disclosure

These can lead to:

Criminal liability (imprisonment and fines) for officers and responsible employees
Administrative penalties from the National Privacy Commission (NPC), including orders to delete data, stop operations, or pay administrative fines (depending on the rules in force).

2.5 Financial Products and Services Consumer Protection Act (RA 11765)

RA 11765 (and its implementing rules) strengthens consumer protection in the financial sector.

Key points:

Financial service providers (banks, lending companies, financing companies, etc.) must observe fair, honest, transparent, and responsible conduct.
Debt collection must not involve:
- Harassment or unreasonable collection practices
- Use of threats, intimidation, or abusive language
- False representations of authority (e.g., pretending to be from “court,” “CIDG,” “NBI,” when they are not)
- Unreasonable or unjust disclosure of debt information to third parties

Regulatory agencies involved, depending on the entity:

Bangko Sentral ng Pilipinas (BSP) – for banks, e-money issuers, and certain finance companies
Securities and Exchange Commission (SEC) – for lending and financing companies (many loan apps fall here)
Insurance Commission (IC) – for insurance-related products
Cooperative Development Authority (CDA) – for cooperatives providing credit

These regulators can:

Investigate complaints
Impose fines and administrative sanctions
Order suspension or revocation of license/registration

2.6 SEC and BSP Rules on Abusive Collection Practices

While specific circular numbers and details evolve, the general regulatory trend is:

Prohibition of:
- Threats, insults, or obscene language in collecting debts
- Disclosing borrower’s debt to third parties (contacts, employer) except under limited, lawful circumstances
- Misrepresenting or overstating consequences (e.g., “You will be immediately arrested without warrant”)
Requirements:
- Clear disclosure of interest rates, fees, and penalties
- Registration of lending apps and companies with the SEC; non-registered apps are illegal.

Illegally operating (unlicensed/unregistered) online lending apps may be the subject of SEC enforcement action, including orders to cease operations and criminal complaints against responsible officers.

3. When Does Legitimate Collection Become Harassment?

Legitimate collection may include:

Sending polite reminders
Sending billing statements and due date notices
Calling you during reasonable hours to follow up
Sending demand letters or warnings of legal action (court cases), as long as these are truthful and not deceptive

Harassment may be found where the collector:

Calls or messages you or your contacts dozens of times a day, especially at odd hours
Uses words such as “bobo,” “animal,” “magnanakaw,” “scammer,” “walang hiya” to shame you
Sends your photo (sometimes edited) labeling you a “criminal” or “wanted”
Contacts your employer, clients, or relatives to shame you or threaten your job
Threatens violence or criminal acts (e.g., physical harm, property damage)
Fabricates legal documents or pretends to be from a government agency
Publicly posts your debt on social media or group chats
Pressures you to pay fees or charges not validly agreed upon or clearly excessive

The totality of behavior is important. Even if each message alone might look “mild,” daily spam to you and your contacts, combined with shaming language, can be harassment.

4. Rights of the Borrower

As a borrower in the Philippines:

You have an obligation to pay your valid debt, but…
You have the right to be free from harassment, threats, and humiliation in the collection process.
Your personal data should not be misused, over-collected, or disclosed to others without lawful basis.
You can file complaints with:
- SEC – for online lending apps and lending/financing companies
- BSP – for banks and regulated financial institutions
- NPC – for data privacy violations (use of contacts, photos, and public shaming)
- PNP / NBI – for criminal acts (threats, libel, unjust vexation, etc.)
You can file civil cases for damages if you’ve suffered mental anguish, besmirched reputation, or other injury due to abusive tactics (Art. 19, 20, 21, 26 Civil Code).

5. Practical Legal Remedies and Processes

5.1 Preserve Evidence

Before taking action, secure evidence, such as:

Screenshots of messages, chats, emails
Call logs showing frequency and timing
Copies of social media posts or group chat messages (including links, timestamps)
Any “warning posters” or edited images using your face
Written communications from the lender or collectors
If possible, notarized certifications of screenshots (your lawyer can guide you)

Avoid editing the screenshots; keep original copies. If posts are likely to be deleted, take multiple screenshots and consider screen recording.

5.2 Determine the Type of Entity

Identify:

Name of the lending company
Whether it appears registered with SEC or supervised by BSP (for banks and some lenders)
The app name and developer details

This helps you know which regulator to complain to and whether the company might be operating illegally.

5.3 Administrative Complaints

a. SEC Complaint (for Lending/Financing Companies and Loan Apps)

You may file a complaint with the SEC if:

A lending or financing company uses harassment, threats, or abusive collection
A loan app is operating without SEC registration
The app collects excessive data or misrepresents its terms

Possible results:

Administrative penalties and fines
Suspension or revocation of lending license or registration
Referral for criminal prosecution of responsible officers

b. NPC Complaint (Data Privacy)

If your contacts were spammed, your photos or information were used for shaming, or your data was processed beyond what was explained:

You may file a complaint with the National Privacy Commission for:

Unauthorized or excessive collection of data
Unauthorized disclosure to third parties
Failure to implement adequate data protection measures

NPC can issue:

Orders to cease and desist certain processing
Orders to delete unlawfully collected data
Administrative penalties and recommendations for criminal prosecution

c. BSP, IC, CDA Complaints

If the lender is a bank, cooperative, or insurer (e.g., credit via mobile banking app):

File complaints with BSP (for banks), CDA (for cooperatives), or IC (for insurance-related financial products).

5.4 Criminal Complaints (PNP or NBI)

For threats, cyber libel, coercion, or unjust vexation:

Prepare your affidavit narrating the harassment and attaching evidence.
File a complaint with:
- PNP (especially the Anti-Cybercrime Group for online cases), or
- NBI Cybercrime Division

The prosecutor’s office will later evaluate whether to file an Information in court.

Keep in mind:

Criminal cases can take time and require active participation.
Your evidence’s authenticity and chain of custody can be important (a lawyer can help prepare this properly).

5.5 Civil Case for Damages

You may file a civil case, e.g., for:

Moral and exemplary damages
Attorney’s fees and costs

Basis: Civil Code Articles 19, 20, 21, 26 (and possibly others).

This may be filed separately or alongside criminal complaints, depending on strategy. Your lawyer will choose the best approach given your situation.

6. What About the Loan Itself? Is it Still Payable?

Separate questions often arise:

6.1 If the App Is Unregistered/Illegal

If the lender is not properly licensed or registered, different legal consequences may apply depending on the circumstances and applicable rules. In some cases:

You may still be required to return the principal borrowed (to avoid unjust enrichment), but
Unconscionable interest, penalties, and charges may be void or reducible.

Courts can:

Reduce unconscionable interest rates
Declare certain clauses void as contrary to law, morals, good customs, public order, or public policy.

This is very fact-specific; you should consult a lawyer to examine your contract.

6.2 If You Simply Cannot Pay

Financial difficulty is common. Harassment is not the legal solution.

Practical tips:

Communicate in writing (email, chat) to propose restructuring or partial payment, but be cautious about admitting more than what is truly owed.
Keep a record of any payments you make (receipts, screenshots of transactions).
Do not be pressured into paying unauthorized or invented charges just to stop harassment; instead, consider legal remedies while planning how to settle the legitimate portion of your debt.

7. Protecting Your Contacts and Reputation

Loan apps often weaponize your contact list.

Key points:

Your references and contacts are generally not liable for your debt unless they signed as co-borrowers, co-makers, or guarantors.
Harassing your contacts is not a lawful collection method.
Messages to your contacts labeling you as “scammer” or “criminal” may give rise to a libel case and data privacy complaints.
You may:
- Inform your contacts that the loan app is harassing them unlawfully.
- Ask them to keep screenshots as evidence.
- Reassure them they are not responsible for your debt unless they willingly signed legal documents.

8. Evidence Issues: Recording Calls and Chats

In the Philippines:

The Anti-Wiretapping Law (RA 4200) prohibits recording a private communication without the consent of any of the parties.
However, jurisprudence has recognized that a party to the conversation who records it is not committing wiretapping (since they are a participant, not an outsider “tapper”).

Because nuances can be crucial and case law evolves:

It’s safer to consult a lawyer before relying heavily on recorded calls.
Written evidence (texts, chat, emails, screenshots) is generally more straightforward.

9. Practical Step-by-Step Guide for a Harassed Borrower

Stay calm and document everything.
- Take screenshots and save messages.
- Do not engage in profanity or threats that can be used against you.
Identify the lender.
- Name, app, and any corporate details you can find.
- Note if they claim to be SEC-registered or a bank.
Secure your phone and accounts.
- Review app permissions (contacts, storage, SMS, etc.).
- Consider uninstalling abusive apps after securing copies of relevant data (screenshots).
Inform affected contacts.
- Explain that a loan app is misusing your information.
- Ask them to keep any messages they receive as evidence.
Consult a lawyer, if possible.
- Bring printed or digital copies of all evidence.
- Discuss options: administrative complaints, criminal complaints, civil action, or combinations.
File appropriate complaints:
- SEC/BSP/NPC for regulatory and data privacy issues.
- PNP/NBI for threats, libel, cybercrime.
Address the real debt.
- If the loan is valid, plan how to settle legitimate principal and fair interest, whether via restructuring, partial payment, or other realistic arrangements.
- Do not allow harassment to push you into more predatory loans just to pay the first one.

10. Final Notes and Cautions

Non-payment of debt alone is not a criminal offense in the Philippines (no imprisonment for debt as such), but related fraud (e.g., issuing bouncing checks with deceit, identity theft, etc.) can be criminal.
Lenders often bluff about “immediate arrest” or “police coming today”; actual arrest for debt collection alone does not happen without due legal process, and usually involves a court case, not mere collector threats.
On the other hand, do not ignore the debt entirely; lenders can file appropriate civil or criminal cases (where applicable) through proper channels.

Because loan app harassment often involves a mix of civil, criminal, regulatory, and data privacy issues, the best approach is often combined:

Administrative complaints to regulators
Possible criminal complaints for threats and libel
Civil claims for damages
At the same time, a realistic plan to resolve the legitimate portion of the debt.

If you are facing this situation now, the most concrete next step is to organize your evidence and consult a Philippine lawyer or a legal aid group. They can tailor these general principles to your specific facts and help you decide which legal remedies to pursue first.