Introduction

In the Philippines, the rise of online lending applications (apps) has provided convenient access to credit for many Filipinos. However, this convenience has been marred by widespread reports of abusive practices, including harassment and defamation by lending companies or their agents. Borrowers often face relentless collection tactics, such as incessant calls, threatening messages, public shaming on social media, and unauthorized sharing of personal information. These actions not only violate borrowers' rights but can also constitute criminal offenses under Philippine law.

This article provides a comprehensive guide on addressing such issues through formal complaints to the National Bureau of Investigation (NBI) and the National Privacy Commission (NPC). It covers the legal basis for these complaints, the types of violations involved, the step-by-step filing processes, required documents, potential outcomes, and additional remedies. Note that while this information is based on established Philippine laws and procedures, consulting a lawyer for personalized advice is recommended, as legal situations can vary.

Understanding the Violations: Harassment and Defamation in Online Lending

Online lending apps operate under the regulatory oversight of the Securities and Exchange Commission (SEC) for financing companies, and some may also fall under the Bangko Sentral ng Pilipinas (BSP) if they are banks or quasi-banks. However, many complaints stem from unregistered or unscrupulous lenders who engage in predatory practices.

Key Violations

Harassment: This includes aggressive debt collection methods that cause emotional distress, such as repeated calls at odd hours, threats of violence, or intimidation. Under Republic Act No. 10175 (Cybercrime Prevention Act of 2012), certain forms of online harassment can be classified as cybercrimes, including computer-related offenses like unauthorized access or cyber libel.
Defamation: Publicly shaming borrowers by posting their photos, contact details, or false accusations on social media or group chats constitutes defamation. This is punishable under Article 353 of the Revised Penal Code (RPC), which defines libel as a public and malicious imputation that tends to cause dishonor, discredit, or contempt. When done online, it falls under cyber libel as per RA 10175, with penalties increased by one degree.
Data Privacy Breaches: Lending apps often collect extensive personal data during loan applications. Unauthorized sharing of this data (e.g., contact lists for "contact blasting") violates Republic Act No. 10173 (Data Privacy Act of 2012). This includes improper processing, disclosure, or use of personal information without consent.

These violations are exacerbated by the fact that many online lenders access borrowers' phone contacts and use them for collection purposes, leading to complaints from family and friends. The NPC has issued advisories and decisions penalizing such practices, while the NBI handles criminal aspects, especially those involving cybercrimes.

Relevant Laws and Regulations

Revised Penal Code (RPC): Covers traditional libel and slander.
Cybercrime Prevention Act (RA 10175): Addresses online versions of crimes like libel, harassment, and identity theft.
Data Privacy Act (RA 10173): Protects personal information and imposes penalties for breaches.
SEC Memorandum Circular No. 19, Series of 2019: Regulates fair debt collection practices for financing and lending companies, prohibiting harassment, threats, and defamation.
Anti-Cyberbullying Provisions: Under RA 10627 (Anti-Bullying Act) and related laws, though primarily for schools, elements can apply to online shaming.
Consumer Protection Laws: The Consumer Act (RA 7394) and BSP Circulars emphasize fair treatment in financial services.

Victims can pursue civil, criminal, and administrative remedies. Filing with the NBI targets criminal prosecution, while the NPC focuses on data privacy enforcement.

When to File Complaints

File a complaint if you experience:

Threatening or abusive messages/calls.
Public posting of your personal details or photos with defamatory content.
Unauthorized access or sharing of your data.
False accusations affecting your reputation.
Collection tactics causing undue stress or involving third parties without consent.

Early filing is crucial, as evidence like screenshots and call logs can fade over time. There's no strict statute of limitations for filing complaints, but criminal actions for libel have a one-year prescription period from discovery.

Filing a Complaint with the National Bureau of Investigation (NBI)

The NBI is the primary agency for investigating cybercrimes, including online harassment and defamation. Their Cybercrime Division handles cases involving RA 10175.

Step-by-Step Process

Gather Evidence:
- Screenshots of messages, posts, or emails.
- Call logs, recordings (if legal; note that unauthorized recording may violate anti-wiretapping laws).
- Loan agreements, app terms, and payment records.
- Witness statements from affected third parties (e.g., family members harassed).
- Identification of the lender (app name, company details from SEC registration if available).
Prepare Your Complaint:
- Draft a sworn affidavit detailing the incidents, timeline, and impact. Include specifics like dates, times, and exact wording of threats/defamatory statements.
- If possible, identify the perpetrators (e.g., agent names, phone numbers, social media accounts).
Visit an NBI Office:
- Go to the nearest NBI regional office or the main office in Manila (NBI Building, Taft Avenue, Ermita, Manila).
- For cybercrimes, request assistance from the Cybercrime Division. Some regions have dedicated units.
- No filing fee is required for complaints, but there may be minimal costs for notarization or copies.
File the Complaint:
- Submit your affidavit and evidence to the NBI agent.
- The NBI will evaluate if there's probable cause. If accepted, they'll assign an investigator.
- You may be interviewed, and the NBI can subpoena records from telcos or social media platforms.
Investigation and Follow-Up:
- The NBI conducts entrapment operations if ongoing, or gathers digital evidence.
- If sufficient evidence is found, they'll endorse the case to the Department of Justice (DOJ) for prosecution.
- Track your case via the NBI's online portal or by visiting the office.

Potential Outcomes

Criminal charges filed in court (e.g., cyber libel punishable by prision correccional in its maximum period to prision mayor in its minimum period, or fines).
Arrest warrants for perpetrators.
Closure of illegal lending operations if linked to broader scams.

Filing a Complaint with the National Privacy Commission (NPC)

The NPC enforces the Data Privacy Act and handles complaints related to unauthorized data processing by online lenders.

Step-by-Step Process

Gather Evidence:
- Similar to NBI: screenshots, messages showing data sharing, app privacy policy violations.
- Proof of consent (or lack thereof) for data use.
- Details on how your data was breached (e.g., contacts accessed without permission).
Prepare Your Complaint:
- Use the NPC's official complaint form (available on their website: privacy.gov.ph).
- Include a narrative of the breach, affected data, and respondent (lending company/app).
- Complaints can be for privacy violations, security incidents, or non-compliance.
Submit the Complaint:
- File online via the NPC's e-complaint system or email (complaints@privacy.gov.ph).
- Alternatively, submit in person at the NPC office (5th Floor, Philippine International Convention Center, Pasay City) or regional offices.
- No filing fee; complaints are free.
NPC Review and Investigation:
- The NPC assesses the complaint within 15 days.
- If valid, they notify the respondent and may require a response.
- Investigations can include hearings, site visits, or data audits.
- For urgent cases, request a cease-and-desist order.
Resolution:
- The NPC issues decisions, which may include fines (up to PHP 5 million per violation), orders to delete data, or referrals to other agencies like the SEC for license revocation.

Potential Outcomes

Administrative penalties on the lender.
Compensation for damages (though civil claims may need separate court action).
Public advisories or blacklisting of errant apps.

Additional Remedies and Tips

SEC Complaints: For regulatory violations, file with the SEC's Enforcement and Investor Protection Department. This can lead to fines or suspension of operations.
Court Actions: Pursue civil damages for moral injury or file a criminal case directly with the prosecutor's office if NBI endorsement is delayed.
Support Organizations: Seek help from groups like the Credit Information Corporation (CIC) or consumer advocacy NGOs. The Integrated Bar of the Philippines (IBP) offers free legal aid.
Prevention: Before borrowing, check if the app is SEC-registered (via sec.gov.ph). Read privacy policies and avoid granting unnecessary permissions.
Multiple Filings: You can file with both NBI and NPC simultaneously, as they address different aspects (criminal vs. administrative).
Challenges: Investigations can take months; preserve evidence digitally. If the lender is foreign-based, international cooperation may be needed via the NBI's Interpol links.
Recent Developments: The NPC has handled numerous cases against apps like Cashwagon and JuanHand, imposing fines and ordering reforms. The DOJ has prosecuted cyber libel cases from lending harassment.

By filing these complaints, victims not only seek justice but also contribute to curbing abusive practices in the online lending industry. Persistence and thorough documentation are key to successful resolutions. If facing immediate threats, contact local police for protection under RA 9262 (Anti-VAWC Act) if applicable.