Online Lending App Charging Excessive Interest and Harassing Borrowers: How to File an SEC Complaint (Philippines)

Philippine-focused legal explainer and step-by-step guide. Not legal advice. Regulations evolve; verify details with the Securities and Exchange Commission (SEC) or a lawyer.

1) The legal landscape—who regulates what?

Primary laws & regulators

Securities and Exchange Commission (SEC) – regulates lending companies and financing companies under the Lending Company Regulation Act of 2007 (R.A. 9474) and the Financing Company Act of 1998 (R.A. 8556), plus SEC rules. The SEC also enforces the Financial Products and Services Consumer Protection Act (R.A. 11765) as it applies to SEC-supervised entities.
National Privacy Commission (NPC) – enforces the Data Privacy Act (R.A. 10173). Most “debt-shaming” tactics (scraping your contacts, spamming your family, public posts) are privacy violations—NPC can fine and order compliance.
Bangko Sentral ng Pilipinas (BSP) – sets interest-rate and fee ceilings for certain small, short-term consumer loans offered by lending/financing companies. The SEC generally enforces these caps against its supervised firms.
Police / prosecutors / courts – criminal acts (e.g., grave threats, coercion, cyber-libel) and civil money claims are handled here.

Key takeaway: If the app is a lending or financing company (non-bank), SEC is your lead venue for abusive collection, illegal operations (no license), and excessive/undisclosed charges. NPC is the venue for privacy abuses. You may use both.

2) What counts as a violation?

A. “Excessive” interest & charges

Unlawful or “unconscionable” rates: Even without fixed usury ceilings for all loans, Philippine courts strike down unconscionable interest and reduce it to reasonable levels. Hidden “processing,” “service,” and roll-over fees can be unlawful if not properly disclosed or if they make the cost oppressive.
Regulatory caps for certain small loans: For low-value, short-tenor personal loans, the Monetary Board has imposed monthly caps on interest/finance charges and certain fees. If your loan fits that category and the app exceeded the cap, that’s a solid ground for an SEC complaint (for enforcement), on top of contractual and consumer-protection violations.

B. Harassment / unfair debt collection

SEC’s Prohibition on Unfair Debt Collection Practices (2019) bans, among others:

Threats of violence, arrest, or criminal cases when none exist.
Shaming: contacting your phone contacts, employer, or social-media circles; group chats announcing your “delinquency.”
Obscene/insulting language; repeated calls at unreasonable hours.
False representations (posing as a lawyer/police/prosecutor; threatening “warrants”).
Publicly posting or disclosing your personal data or debt.
Collecting from persons not named as debtor/guarantor in the contract.

C. Data privacy violations (NPC jurisdiction)

Harvesting your contacts or photos unrelated to the loan.
Disclosing your debt or personal data to third parties without a lawful basis.
Demanding excessive app permissions.

3) Before you complain: protect yourself & preserve proof

Secure your device & data
- Revoke app permissions (contacts, storage, camera, microphone, location).
- Change passwords for email/e-wallets; enable 2FA.
Preserve evidence (don’t secretly record calls; see note below)
- Clear screenshots of the app listing, loan screens, interest/fees, repayment calendar.
- Texts/Chats with collectors; call logs (date/time/number).
- Receipts/transactions; contract/terms; IDs of agents (if any).
- Copies of any public shaming posts/messages.
- Note dates/times of harassing calls.
- Important: The Anti-Wiretapping Act generally bars secret audio recording of private communications without consent of all parties. Use written communications and call logs instead.
Pay what you actually owe (if able) while disputing the rest
- Consider paying the principal (and lawful interest/fees) under protest to stop ballooning charges, while formally disputing illegal add-ons.
Tell your contacts (if they were spammed)
- Brief message: your phone was accessed by a lending app; you’re handling it with regulators; they can ignore or forward messages to you.

4) How to file an SEC complaint (step-by-step)

Step 1: Confirm the lender’s status

Registered lender? Lending/financing companies must have both SEC registration and a Certificate of Authority (CA) to operate.
- Unregistered app or no CA → illegal: strong SEC case; the SEC often issues Cease-and-Desist Orders (CDOs) and revokes certificates.
Registered but abusive? You can complain for unfair debt collection, excessive/undisclosed charges, violations of interest-rate caps (if applicable), and misrepresentations.

(If you can’t verify status online, include that in your complaint; the SEC can check.)

Step 2: Draft your Verified Complaint

Include:

Complainant details: name, address, contact.
Respondent details: app name(s), legal entity (if known), office address/links, phone numbers, collection agents’ names/handles.
Facts: dates of application, approval, amounts, rates/fees, due dates, payment history; describe harassment (who/when/what), attach screenshots.
Violations invoked:
- R.A. 9474 / R.A. 8556 and SEC rules (unfair collection, undisclosed/illegal charges, operating without CA, misrepresentation);
- R.A. 11765 (unfair, deceptive, or abusive acts or practices);
- (If relevant) breach of interest-rate caps for small loans set by the Monetary Board (for SEC enforcement).
Reliefs requested: e.g., (1) Cease-and-Desist against abusive collection and data misuse; (2) administrative fines/revocation; (3) order to correct disclosures; (4) coordination with NPC for privacy breaches; (5) acknowledgment that disputed interest/fees are void or unconscionable (for your civil recourse).
Verification + notarization: Sign a Verification and Certification against forum shopping and have your Affidavit notarized. Attach a government ID.

Tip: If several borrowers suffered similar abuse, separate complaints are fine; you can reference each other’s cases and attach comparable evidence.

Step 3: File with the proper SEC office

You may file with:
- The department handling lending/financing companies (commonly within SEC’s Corporate Governance & Finance group), and/or
- The Enforcement & Investor Protection unit (especially for illegal or fraudulent operations).
Where/how to submit:
- Email/online channel (where available), or
- In person at the SEC Main/Extension Offices (keep a stamped receiving copy).
- If filing by courier, keep proof of delivery and an index of attachments.

(Because you asked not to browse, specific emails/URLs and current counters aren’t listed here. Check the SEC’s official site or call an SEC extension office for the latest intake channels.)

Step 4: What happens next

Docketing & evaluation: SEC screens your complaint and attachments.
Show-Cause / CDO: For strong prima facie cases (e.g., harassment, unlicensed operations), SEC may issue a Show-Cause Order or an immediate Cease-and-Desist Order.
Proceedings & sanctions: Administrative fines, suspension/revocation of the Certificate of Authority, directives to correct practices/terms, and referrals to prosecutors for criminal violations.
Parallel action: You may simultaneously file with the NPC for privacy violations and pursue civil claims (e.g., to void unconscionable charges or recover damages).

5) Template: SEC Verified Complaint (you can copy-paste)

Republic of the Philippines Securities and Exchange Commission [Department/Unit Handling Lending/Financing Companies]

[Your Name], Complainant vs. [Lender’s Corporate Name] doing business as [App Name], Respondent x-----------------x

VERIFIED COMPLAINT

Parties. I am [name, age, address, contact]. Respondent is [corporate name if known], operating the online lending application [App], with known addresses/numbers: [list].
Jurisdiction. Respondent is a lending/financing company subject to the SEC’s supervision under R.A. 9474/R.A. 8556 and related rules.
Factual Antecedents. On [date], I obtained a loan of ₱[amount] for [term]. The app disclosed [state rate/fees or lack of disclosure]. On [dates], collectors [names/handles] repeatedly [harassment facts], including [threats/shaming/false claims of arrest]. Evidence attached as Annexes “A” to “_”.
Violations. Respondent committed: a. Unfair debt collection practices prohibited by SEC rules (harassment, shaming, false representations); b. Excessive/undisclosed interest/fees, contrary to R.A. 11765’s consumer-protection standards and jurisprudence against unconscionable interest; c. If applicable: Operating without a valid Certificate of Authority / using an unregistered online lending platform; d. If applicable: Breach of Monetary Board caps for small-value loans.
Reliefs. I respectfully pray that the SEC: a. Issue a Cease-and-Desist Order enjoining Respondent’s unfair collection and abusive practices; b. Impose appropriate administrative sanctions (fines, suspension/revocation of CA); c. Direct compliance with disclosure and collection standards; d. Coordinate with the National Privacy Commission for data-privacy violations; e. Grant other just and equitable reliefs.

[City], Philippines, [date]. [Signature over printed name]

VERIFICATION & CERTIFICATION I, [name], state under oath that I caused the preparation of this Complaint; the allegations are true based on my personal knowledge and authentic records; I have not commenced any other action involving the same issues; if any related action exists, I have disclosed its status.

[Signature over printed name]

JURAT Subscribed and sworn to before me this [date] in [city], affiant exhibiting [ID details]. Notary Public

Annexes: A – Screenshots (loan terms); B – Payment receipts; C – Chat logs; D – Call logs; E – Public posts/messages; F – Copy of app store listing; G – Any SEC/BSP/NPC correspondence.

6) Parallel filing with the NPC (debt shaming/data misuse)

File a separate NPC complaint if the app:

Accessed your contacts/photos or disclosed your debt publicly; or
Sent harassing messages to third parties.

NPC complaint essentials: Statement of facts, evidence of disclosures/permissions, copies of privacy policy/screens, relief sought (stop processing, delete data, sanctions). You can tell the SEC you’ve also filed with NPC; cross-reference case numbers once assigned.

7) Civil & criminal options (beyond the SEC case)

Civil: You can sue to void unconscionable interest/fees, recover overpayments/damages, or seek injunction. Many such claims qualify for Small Claims (streamlined, lawyer-optional) depending on the amount.
Criminal: Consider complaints for grave threats/coercion, unjust vexation, libel/cyber-libel, violations of the Lending Company/Financing Company Acts, and other applicable offenses—especially for repeat or severe harassment. Consult a lawyer or the prosecutor’s office.

8) Frequently asked questions

Q: They’re threatening a “warrant of arrest” tomorrow. Only courts issue warrants after a criminal case is filed and probable cause is found. Collectors cannot issue warrants. Such threats are harassment.

Q: They say non-payment is “estafa.” Debt ≠ crime by itself. Estafa requires fraudulent acts (e.g., deceit). Collectors frequently misuse this threat.

Q: Can I record their abusive calls? Avoid secretly recording calls; it can violate the Anti-Wiretapping Act. Keep texts, chat logs, call logs, and any voicemails you lawfully received.

Q: The app deducted fees I never approved. Undisclosed or deceptive fees are grounds for SEC enforcement and civil relief. Dispute in writing and attach proof.

Q: Can I keep using the app? Delete/disable abusive apps, revoke permissions, and do not share new personal data. If you must repay, use secure channels you can document.

9) Practical filing checklist

Screenshots of loan terms and actual computations (before and after disbursement).
Payment records and e-wallet/bank statements.
Harassment evidence: chat logs, SMS, call logs; copies of group posts.
Identity of collectors (names, numbers, handles) and dates/times.
Your affidavit (notarized) + ID.
Complaint letter (facts, violations, reliefs).
Optional: NPC complaint for privacy issues.
Optional: Demand letter to lender disputing unconscionable interest/fees.

10) Short demand-letter template (optional, send to lender)

Subject: Demand to Cease Unfair Collection and to Correct Unlawful Interest/Fees – [Your Name / Loan No.]

Dear [Lender/App],

I dispute the interest/fees imposed on my ₱[amount] loan dated [date] as undisclosed/unconscionable and potentially in breach of applicable Monetary Board caps for small consumer loans. I also demand that you cease unfair debt collection practices (harassing calls, shaming, false threats of arrest) prohibited by SEC rules and stop processing or disclosing my personal data beyond lawful purposes.

Please provide a corrected statement reflecting only lawful charges, and confirm in writing within 5 business days that abusive collection will cease.

Sincerely, [Name] | [Contact] Attachments: Proof of payments; screenshots; chat logs

11) What a “good” evidence pack looks like (for faster action)

Timeline (one page): dates from app install → loan approval → disbursement → due date(s) → harassment episodes.
Cost table: principal, stated interest/fees vs. actual deducted/collected; show the effective cost.
Contact map: list which friends/relatives were messaged (names, numbers, timestamps) with screenshots.
Index of annexes with descriptive filenames.

12) Final pointers

You can file with SEC even if you continue paying, and you may reserve civil claims to recover unlawful charges.
If the lender is unregistered or uses an unregistered online lending platform, mention this clearly—SEC often acts quickly.
Keep communications in writing; avoid heated exchanges; use formal language (it reads well before regulators).
If you feel physically unsafe, call 911 (PH emergency) and report to the PNP.

If you want, I can turn the templates (complaint, affidavit, demand letter, evidence index) into editable Word files you can download and fill out.