Loan-App Harassment Complaints in the Philippines – A Comprehensive Legal Guide
(Updated as of July 2025 – Philippine jurisdiction)
Disclaimer: This article is for information only and does not constitute legal advice. Where harassment is ongoing, consult a lawyer or the relevant government agencies immediately.
1. Background: Why “loan-app harassment” became a national issue
Explosion of digital microlending (2016-present). Fintech startups filled the credit gap left by formal banks. Many launched mobile applications (“loan apps”) offering fast, collateral-free loans with approval in minutes.
Aggressive debt-collection tactics. Some operators scraped borrowers’ phone contacts, threatened public shaming, posted edited photos on social media, or flooded workplaces with calls—acts collectively dubbed “loan-app harassment.”
Regulatory catch-up. Between 2019 and 2024, Congress, the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC) and the National Privacy Commission (NPC) issued new rules closing gaps that traditional banking law had not anticipated.
2. Core Legal Framework
| Instrument | Scope | Key Provisions Relevant to Harassment |
|---|---|---|
| Republic Act (RA) 10173 – Data Privacy Act of 2012 (DPA) | All personal-data processing | • Lawful basis, transparency, proportionality • Consent must be informed, freely given, specific • NPC may issue cease-and-desist, impose fines (₱100 k – ₱5 M per violation) and recommend criminal prosecution (1–6 yrs imprisonment). |
| RA 10175 – Cybercrime Prevention Act of 2012 | Online libel, threats, identity theft, illegal access | • Penalties 1 degree higher than offline counterparts. • PNP-ACG & NBI-CCD handle investigations; courts may order blocking of URLs or apps. |
| RA 11765 – Financial Products and Services Consumer Protection Act (FPSCPA) 2022 | All providers of loans, deposits, payments, investments | • Unfair collection practices expressly prohibited. • Empowers BSP, SEC, Insurance Commission (IC) & Cooperative Development Authority (CDA) to issue cease & desist orders (CDOs), restitution, disgorgement of profits. • Penalties: fines up to ₱2 M per transaction plus daily penalties; responsible officers may face imprisonment up to 5 yrs. |
| SEC Memorandum Circular (MC) 18-2019 | Lending & financing companies | • Blacklists the following: profanity; threats of violence; contacting persons in borrower’s contact list except guarantors; public disclosure of debts; false representations. • Fines: ₱25 k per act + ₱1 k/day continuing, plus possible revocation of Certificate of Authority and criminal referral (RA 9474 & RA 5980). |
| BSP Circular No. 1160 (2023) & Memorandum M-2022-015 | Banks & BSP-supervised institutions (BSIs) | • Requires “fair, respectful, and non-intrusive” collection. • Mandates internal complaint-handling within 7 business days; unresolved cases may be elevated to BSP Consumer Assistance Management System (CAMS). |
| Revised Penal Code (RPC) | Crimes against honor & liberty | • Art. 287 Unjust Vexation; Art. 286 Grave Coercion; Art. 282 Grave Threats; Arts. 353-359 Libel & Slander may apply to abusive collectors. |
| RA 11313 – Safe Spaces Act (Bawal Bastos Law) | Gender-based online harassment | • Covers misogynistic, sexist insults—often used in shaming borrowers. |
| RA 9995 – Anti-Photo and Video Voyeurism Act (2009) | Non-consensual distribution of images | • Loan agents who publish borrowers’ manipulated photos commit a separate felony. |
| National Telecommunications Commission (NTC) MO 10-12-2024 | SMS & call blocking | • Telcos must deactivate, within 24 hrs, numbers used in proven harassment upon formal request by SEC or law-enforcement. |
3. Which Regulator Handles What?
| Situation | Primary Agency | Supporting Offices |
|---|---|---|
| App is registered lending/financing company | SEC – Financing & Lending Division | NPC for privacy, PNP-ACG for criminal acts |
| App operated by a bank/e-money issuer | BSP – Financial Consumer Protection Department | NPC, PNP-ACG |
| App is unregistered / overseas but collects PH data | NPC (privacy breach) ± DTI-Fair Trade Enforcement | NBI-CCD for extradition / takedown |
| Criminal conduct (threats, libel, theft) | PNP-ACG or NBI-CCD | Prosecutor’s Office / courts |
| SMS & call bombardment | NTC (SIM deactivation) | Telcos |
4. Step-by-Step Complaint Pathways
A. National Privacy Commission (DPA violations)
Document the incident. Screenshots, call logs, messages, copies of consent forms.
File an online complaint via https://privacy.gov.ph within two (2) years from discovery.
Mediation & fact-finding. NPC may summon parties for clarificatory conferences.
Decisions. NPC may order:
- Suspension or permanent ban of the app;
- Erasure of unlawfully obtained data;
- Administrative fines;
- Referral for criminal prosecution.
B. Securities & Exchange Commission (Lending/Financing Companies)
Verify registration through SEC’s Philippine Lending & Financing Companies List.
Submit SEC Complaint Form (MC 18-2019 Annex “A”) at the Markets & Securities Regulation Department (MSRD) or via e-CMD portal.
Show harassment evidence. The SEC may:
- Impose fines (₱25 k +);
- Issue a cease & desist order;
- Revoke the Certificate of Authority;
- Coordinate with Google/Apple for app delisting.
C. BSP-Supervised Institutions (BSIs)
- Write first to the BSI’s consumer-assistance desk. Keep proof of mailing/email.
- If unresolved after 15 business days, lodge with BSP-CAMS (https://consumerassistance.bsp.gov.ph).
- BSP may order restitution, mandate process changes, or fine the institution.
D. Criminal Harassment
- Execute a Sworn Statement before the prosecutor or police.
- Preserve digital evidence following E-Rules on Electronic Evidence (e.g., metadata preservation).
- Cases for online libel, grave threats, unjust vexation, or voyeurism proceed to regular courts; cyber-crime courts have jurisdiction when the Cybercrime Act applies.
5. Typical Acts Constituting Illegal Harassment
| Act | Potential Violations |
|---|---|
| Mass-messaging borrower’s phone contacts (“shame wall”) | • DPA (unauthorized processing) • Libel (RPC Art. 353) • SEC MC 18-2019 Section 1(b) |
| Threatening arrest or lawsuit absent basis | • Grave Threats (RPC Art. 282) • Unfair collection (MC 18-2019 §1(c)) |
| Posting altered nude photo to coerce payment | • RA 9995 (voyeurism) • Cyber libel • Gender-based online harassment (RA 11313) |
| Excessive calls/SMS (50+ per day) | • Unjust Vexation; NTC MO 10-12-2024 violation |
| Accessing contact list without opt-in consent | • DPA §§12-14; possible ₱500 k–₱5 M fine per act |
6. Remedies Available to Victims
- Administrative fines against the company (SEC/NPC/BSP).
- Cease & desist orders stopping collections or shutting down the app.
- Civil damages (moral, exemplary, nominal) via a separate civil action or as part of the criminal case (Rule 111, Rules of Criminal Procedure).
- Criminal penalties: imprisonment (6 months-6 years) for libel/threats; up to 5 years under RA 11765.
- SIM/App deactivation by NTC or app-store delisting on SEC/NPC request.
- Injunctions (temporary restraining orders) from trial courts to bar further harassment pending final adjudication.
7. Evidence-Gathering Best Practices
| Evidence | How to Preserve | Why Important |
|---|---|---|
| Screenshots of messages | Timestamp visible, include URL/header | Meets authenticity test (Sec. 2, E-Rules) |
| Call logs | Export or photograph phone screen, notarize affidavit | Corroborates volume & frequency |
| Audio recordings | Secure written consent if you are a third party; if you are a party to the conversation, RA 4200 wiretapping ban does not apply | Admissible self-recording |
| App permissions | Screen-record installation & permission prompts | Shows lack of valid consent |
| Bank statements | Highlight unauthorized debits, if any | Proves payment disputes |
8. Defenses Commonly Raised by Debt-Collectors (and Why They Often Fail)
“Borrower consented by clicking ‘Allow Contacts.’” Fails if the consent was not specific and informed (NPC Advisory 2020-01). Blanket consents buried in Terms are void.
“Public interest in debt repayment outweighs privacy.” Not applicable; legitimate collection must still comply with proportionality and fairness under RA 11765.
“Third-party agency, not us, sent the messages.” Principal lenders are solidarily liable for acts of their agents (Civil Code Art. 2180; MC 18-2019 §2).
“Speech is protected under freedom of expression.” Defamation, threats, and unjust vexation are unprotected speech; Cybercrime Act applies.
9. Recent & Upcoming Developments (2024-2025)
| Date | Measure | Impact |
|---|---|---|
| Feb 14 2024 | NPC Circular 24-01: “Guidelines on Facial & Voice Recognition in Credit Scoring” | Bars covert recording; requires privacy-by-design audits. |
| Aug 30 2024 | BSP Circular 1189: Integrates Alternative Dispute Resolution (ADR) into BSIs’ collection policies | Borrowers can opt for free mediation before litigation. |
| Jan 5 2025 | House Bill 10235 (pending Senate): “Fair Debt Collection Practices Act” | Would codify harassment prohibitions and create a unified Registry of Debt Collectors under DTI. |
Note: Until HB 10235 becomes law, SEC MC 18-2019 and RA 11765 remain the primary collection-conduct codes.
10. Practical Tips for Borrowers
- Read app permissions; deny contact-list access.
- Keep written records of every payment and conversation.
- Respond once in writing demanding they stop illegal practices; silence thereafter (continuous replies may reset the harassment timeline).
- File early; agencies can order app takedown faster if multiple complaints pile up.
- Check if the lender is SEC-registered at sec.gov.ph before borrowing.
11. Conclusion
Loan apps have democratized access to credit, but harassment has threatened consumer welfare. Philippine law now provides a multi-layered shield—privacy regulation, financial-consumer protection, criminal sanctions and telecom remedies. Victims need not tolerate abusive tactics; armed with proper evidence and knowledge of the correct forums, they can stop harassment, recover damages, and in many cases have offending apps removed entirely from the Philippine market.
If you or someone you know is experiencing loan-app harassment, act promptly: gather proof, lodge the appropriate complaint, and seek professional counsel where necessary. The law—while still evolving—is firmly on the side of the aggrieved borrower.