Loan Company Harassment & Billing Computation Requests

A Comprehensive Philippine Legal Guide

Scope. This article gathers, in one place, the rules, rights, remedies, procedures, sample documents, and practical tips that a borrower in the Philippines must know when:

Asking a lending or financing company for a detailed billing/loan-computation, and

Responding to harassing or abusive collection practices.

All citations are to Philippine laws, rules, and decided cases as of 18 June 2025. This is general information, not legal advice.

1. Key Regulatory Pillars

Law / Regulation	Core Relevance	Typical Regulator
R.A. 9474 – Lending Company Regulation Act (2007) & its 2010 IRR	Licensing of lending companies; criminal penalties (₱10 k–₱50 k fine and/or 6 mos–10 yrs prison) for unfair collection, misrepresentation, refusal to honor payoff computations, etc.	SEC – Corporate Governance & Finance Dept.
R.A. 3765 – Truth in Lending Act (TILA) (1963) & BSP/SEC TILA Regs	Mandatory before-and-after disclosure of finance charge, APR, amortization table, total payoff; borrower’s right to a running computation on demand.	SEC (lenders), BSP (banks & non-bank QBs)
SEC Memorandum Circular No. 19-2019 (Unfair Debt Collection) – now consolidated in SEC MC 32-2024	Enumerates 12 specific abusive acts (late-night calls, social-media shaming, contacting third persons, threats of violence, obscenities, etc.). Each violation: ₱25 k-₱1 M fine, suspension or revocation of CA/LA.	SEC
R.A. 11765 – Financial Consumer Protection Act (2022) & BSP Circular 1160-2022	Elevates lender misconduct—including refusal to explain charges or continuing harassment—into an administrative offense (₱50 k–₱2 M fine per act, + ₱100 k/day for continuing violation; in egregious cases 1-5 yrs imprisonment).	BSP for BSP-supervised entities; SEC for lending/financing cos.; IC for insurers
R.A. 10173 – Data Privacy Act & NPC Circular 16-01	Using the borrower’s phone contacts or posting personal data to force payment is “unauthorized processing / malice”; penalties: ₱500 k–₱5 M and/or 1-6 yrs prison.	National Privacy Commission (NPC)
R.A. 10175 – Cybercrime Act & RPC Art. 355 (Libel)	Online public shaming, defamatory group chats, “payment wall of shame” pages.	DOJ-OOC, PNP-ACG, NBI-CCD
RPC Arts. 282-287 (Grave threats, unjust vexation, alarms & scandals)	Fits cases of in-person intimidation, visiting the borrower’s home, shouting.	Prosecutor’s Office / PNP
R.A. 8484 – Access Devices Regulation Act	Credit-card style or e-wallet “loans”. Outlaws threats to block passport/immigration, etc.	BSP / DOJ
R.A. 9995 – Anti-Photo & Video Voyeurism Act	Posting borrower’s selfies or IDs as “mug-shots”.	DOJ-OOC
Small Claims Rules (A.M. 08-8-7-SC, as amended 2022)	Fast civil suit (< ₱400 k) for over-charges or harassment damages.	MTC/MeTC

2. What Counts as Harassment?

SEC MC 32-2024 labels the following as presumptively abusive (non-exhaustive):

Threats, profanity, or violence—including “we will send men to your office.”
Calls or messages outside 6 AM–10 PM.
More than two contact attempts per day per channel (SMS, call, e-mail).
Contacting or posting about third persons (family, office HR, social-media friends) without prior written consent.
Public shaming—physical or digital posters, group chats exposing the debt, hashtags.
Impersonating authority (lawyer, court sheriff, police) or issuing fake “subpoenas.”
False or inflated amounts or misrepresentation of legal remedies (e.g., “You’ll go to jail tomorrow if unpaid”).
Blocking the borrower’s house/office entrance, or placing “utang” stickers.

Tip: Save evidence (screenshots with timestamps, call recordings if you announce recording, emails, envelope covers). They will be central to any SEC/BSP/NPC/PNP filing.

3. Your Statutory Right to a Billing or Pay-Off Computation

Timeline	Authority & Text	Borrower’s Right
Upon application	R.A. 3765 §4; BSP Circular 730-2001	Written Disclosure Statement—loan amount, finance charge, APR, total payments, amortization table.
Any time during the loan	§6, same law; SEC MC 7-2021	Borrower may demand an updated statement of account (SOA) and itemized computation (remaining principal, accrued interest, penalties, taxes, other fees).
Within 7 calendar days of request	R.A. 11765 §§12-13; BSP Circular 1160	Financial service providers (FSPs) must provide or explain charges “promptly, clearly, and in writing,” generally interpreted by BSP/SEC as within 7 days.
Pre-termination	R.A. 9474 IRR §8(b)	Borrower may pay ahead and is entitled to rebate on unearned interest (Rule of 78 or Pro-Rata method, whichever is clearly disclosed and accepted).
After full payment	BSP Circular 703-2000; SEC MC 19-2019 §9	Release of Cancellation of Chattel/Real Estate Mortgage (if any) & paid-in-full certificate within 15 days of clearance.

Refusal or delay beyond the 7-day benchmark can be treated as an unfair practice, exposing the company to fines and administrative sanctions under R.A. 11765 and SEC rules.

4. Complaint & Enforcement Pathways

Internal escalation. Write a formal demand to the lender’s Compliance Officer (use the sample letter below).

Regulator complaint. Where to file depends on the lender’s license:

Lender Type	Primary Forum	Typical Time to Resolution
SEC-licensed lending / financing company (online or brick-and-mortar)	SEC – Enforcement & Investor Protection Dept. (EIPD); e-mail or eFAST portal	30-60 days
Bank, thrift/rural bank, pawnshop, EMI, credit card issuer	BSP – Financial Consumer Protection Dept.; complaints@bsp.gov.ph; TLS Portal	15 banking days (BSP circular)
Cooperative	CDA – Cooperative Development Authority	30 days
Data privacy facet (contacting phone book, mass SMS)	NPC – Complaints & Investigation Division	15 days for notice-to-explain

Criminal case.
- Harassment or libel: Sworn complaint before the City/Provincial Prosecutor.
- Grave threats / unjust vexation: Barangay Lupon may require conciliation if parties are in same city/municipality.
Civil suit / Small Claims.
- Over-charges or moral/exemplary damages ≤ ₱400 k may be filed as Small Claims (no lawyer’s appearance fee).
- File Statement of Claim (Form 1-SCC) + evidence; hearing within 30 days; decision within 24 hours after hearing.

5. Penalties & Liability Snapshot

Violation	Fine	Imprisonment	Regulator Action
Unfair collection (SEC MC 32-2024)	₱25 k – ₱1 M per act	—	Suspension / revocation
R.A. 11765 grave misconduct	₱50 k – ₱2 M + ₱100 k/day	1-5 yrs	Cease & Desist + restitution
R.A. 9474 §23 (false statements, harassment)	₱10 k – ₱50 k	6 mos – 10 yrs	License cancellation
Data Privacy unauthorized processing	₱500 k – ₱5 M	1-6 yrs	NPC order, public naming
Libel – RPC Art. 355 / Cyberlibel	Fine or prision correccional	6 mos – 8 yrs (cyberlibel)	Takedown order

Corporate officers, compliance officers, and collection supervisors can be personally prosecuted if they “allowed or tolerated” the unlawful act.

6. Practical Defense Toolkit

Document Everything.
- Activate auto-record for calls (announce recording to comply with R.A. 4200); keep screenshots, voice mails, FB/WhatsApp chats, payment receipts, SOAs.
Send a “Billing Computation & Cease-and-Desist” Demand.
- See sample below. Send by e-mail + registered mail (with registry receipt).
Block or Filter abusive numbers, but keep logs.
Secure Witnesses.
- Colleagues who received harassment calls strengthen an SEC or criminal filing.
File Early.
- Regulators view prompt complaints as showing good faith; late complaints risk being seen as mere delay tactics.
Check Your Consent Forms.
- Many apps rely on “contact scraping” via over-broad permissions; if no clear consent exists, NPC will side with the borrower.
Mind the Cooling-Off.
- Under R.A. 11765, new credit products granted digitally have a 2-day cooling-off period (unless waived). Cancel within that window to avoid future disputes.

7. Sample Letter – Billing Computation & Cease-and-Desist

18 June 2025

Compliance Officer
ABC Lending Corporation
[Address / E-mail]

RE: FORMAL DEMAND FOR DETAILED BILLING COMPUTATION &
    CEASE-AND-DESIST FROM UNFAIR DEBT-COLLECTION PRACTICES

Dear Sir/Madam:

I am the borrower under Loan Agreement No. 123-456 dated 14 January 2024.
Pursuant to **R.A. 3765 (Truth in Lending Act)**, **R.A. 11765 (FCPA)**,
and **SEC Memorandum Circular 32-2024**, I hereby:

1. **Request** within **seven (7) calendar days** a written, itemized
   Statement of Account showing:
   - Remaining principal and interest
   - Penalties and their legal basis
   - Daily interest computation formula
   - Pay-off amount if settled on 30 June 2025
2. **Demand** that your agents, employees, and third-party collectors
   CEASE the following illegal acts: late-night calls (past 10 PM),
   threats of criminal suit for mere non-payment, and messaging my
   workplace Viber group, all in violation of SEC MC 32-2024 §4(b)(1-5).

Failure to comply will compel me to file complaints with the
**Securities and Exchange Commission, National Privacy Commission,
Bangko Sentral ng Pilipinas,** and, if necessary, the Office of the
City Prosecutor for violations of the Revised Penal Code and Cybercrime
Prevention Act.

Please be guided accordingly.

Very truly yours,

[Signature]
Juan Dela Cruz

8. Frequently Asked Questions

Q	A
Can a lending app post my picture or debt on Facebook?	No. That violates SEC MC 32-2024 (public shaming) and the Data Privacy Act.
They keep adding “system maintenance fees” that were never in the contract.	You can refuse to pay undisclosed charges; demand the SOA. Non-disclosure breaches R.A. 3765 and voids the fee.
They say I will be blacklisted with the NBI and BI.	Empty threat. Only a court judgment or criminal conviction can appear in NBI records; the Bureau of Immigration has nothing to do with private debts.
I paid through GCash but they still call me.	Send proof of payment, request issuance of a Paid-in-Full Certificate (SEC MC 19-2019 §9). If they persist, file a harassment complaint.
Can I sue for moral damages?	Yes. Art. 2219 of the Civil Code recognizes moral damages for acts of besmirched reputation or wounded feelings; small-claims court if ≤ ₱400 k.

9. Conclusion

Philippine law gives borrowers robust tools against both opaque billing and harassing collection. The interplay of TILA, the Lending Company Regulation Act, the new Financial Consumer Protection Act, and the Data Privacy framework means:

You are entitled to a clear, prompt, written computation at any stage.
Harassment is not a mere nuisance—it can trigger fines, jail time, and license revocation.
Regulators—SEC, BSP, NPC—have streamlined online complaint systems that ordinary consumers can access without a lawyer.

Stay vigilant, keep written records, and assert your rights early. If the stakes are high or the harassment persists, consult a Philippine lawyer specializing in consumer or data-privacy law.

Prepared 18 June 2025. This material is for information only and does not create an attorney–client relationship.