The rise of Financial Technology (FinTech) in the Philippines has brought convenience, but it has also birthed a predatory ecosystem of illegal or non-compliant Online Lending Applications (OLAs). Many users find themselves trapped in cycles of debt, exacerbated by "shaming" tactics, threats, and data privacy violations.

Under Philippine law, borrowers have specific protections against these abusive practices.

1. Prohibited Unfair Collection Practices

The Securities and Exchange Commission (SEC), through Memorandum Circular No. 18 (Series of 2019), explicitly prohibits "unfair collection practices." These include:

Threats of Violence: Any threat to use physical force against the borrower, their reputation, or their property.
Obscene/Profane Language: Using insults or foul language to coerce payment.
Disclosure of Names: Posting "names of shame" on social media or informing third parties (contacts) about the debt.
False Representation: Claiming to be lawyers, police officers, or court officials to intimidate the borrower.
Contacting Outside Allowed Hours: Calling or messaging before 6:00 AM or after 10:00 PM.

2. Data Privacy Violations

Most OLAs require access to your contacts, gallery, and social media. Using this data to harass you is a violation of the Data Privacy Act of 2012 (RA 10173).

The National Privacy Commission (NPC) has ruled that "contact-tracing" for debt collection—where an app accesses your phonebook to message your friends and family—is illegal. If an app accesses your information for purposes other than what you consented to (loan processing), they are liable for criminal prosecution.

3. How to Execute a Cease-and-Desist

While a formal "Cease-and-Desist" order is usually issued by a court or the SEC, a borrower can send a Notice to Cease and Desist to the lending company to put them on formal notice.

Elements of the Notice:

Demand to Stop: Explicitly state that they must stop contacting your third-party references.
Cite the Law: Mention SEC MC No. 18 and the Data Privacy Act.
Withdrawal of Consent: Formally withdraw any consent previously given regarding the processing of your personal data for harassment purposes.
Statement of Intent: State that you are documenting their actions for a formal complaint with the SEC and NPC.

4. Gathering and Preserving Evidence

To win a case against an OLA, documentation is everything. Do not delete the harassment; archive it.

Screenshots: Capture text messages, emails, and social media posts. Ensure the sender’s number or profile name is visible.
Call Logs: Keep a record of the frequency and timing of calls.
Recordings: If possible, record phone calls where threats are made (note: under the Anti-Wiretapping Act, you should inform them they are being recorded, though some jurisprudence allows recordings of criminal threats).
Proof of Payment: Keep all receipts or screenshots of transactions to prove your balance or overpayment.

5. Where to File Complaints

If the harassment continues, you should escalate to the following agencies:

Agency	Focus Area
SEC (Securities and Exchange Commission)	Violations of lending regulations and unregistered/illegal OLAs.
NPC (National Privacy Commission)	Unauthorized use of contacts, shaming, and data breaches.
PNP-ACG (Anti-Cybercrime Group)	Cyber-libel, threats, and digital extortion.
BSP (Bangko Sentral ng Pilipinas)	If the OLA is operated by a traditional bank or a BSP-supervised financial institution.

6. Practical Defense Strategies

Check the SEC Registry: Verify if the OLA has a Certificate of Authority (CA) to operate as a lending or financing company. If they don't, they are operating illegally.
Lock Down Social Media: Set your profiles to private and warn your contacts that your phone has been compromised by a predatory app.
Report and Block: Use the reporting tools on the Google Play Store or Apple App Store to flag the app for "Illegal Content" or "Harassment."

Legal Note: Indebtedness is a civil matter, not a criminal one. Under the Philippine Constitution, "No person shall be imprisoned for debt." While they can sue you for collection of a sum of money, they cannot have you jailed for the act of being unable to pay.

Would you like me to draft a template for a Formal Notice to Cease and Desist that you can send to a lending company?