Online Lending App Harassment Complaints in the Philippines – A 2025 Legal Primer
1. Why harassment by online-lending apps became a national issue
Since the first “instant cash” apps hit Filipino phones in 2017, complaints have mushroomed: debt-shaming group chats, threats of bodily harm, public posts revealing borrowers’ selfies, even calls to a borrower’s entire contact list in the middle of the night. Between 2018 and 2024 the National Privacy Commission (NPC) alone logged more than 1,600 formal complaints; the Securities and Exchange Commission (SEC) has ordered Google to delist or block over 130 apps, and in March 2025 the Senate opened a full investigation after borrowers described suicidal ideation triggered by abusive collectors. (Category Archive: Press Releases - National Privacy Commission, Senators probe threats vs online borrowers, question SEC memo)
2. Statutory backbone
| Area | Key statute | What it covers for harassment cases |
|---|---|---|
| Licensing of lending/financing firms | R.A. 9474 (Lending Company Regulation Act of 2007) and R.A. 8556 (Financing Company Act of 1998) | Lending/financing must incorporate and secure an SEC Certificate of Authority; violations expose officers to ₱ 10 000–50 000 fine and/or 6 months–10 years’ imprisonment. (R.A. 9474 - LawPhil, [PDF] Fourth Special Session AN ACT AMENDING REPUBLIC ACT NO ...) |
| Financial-consumer rights | R.A. 11765 (Financial Products and Services Consumer Protection Act, 2022) + 2023 IRR | Creates the right to fair, honest, and respectful collection; designates SEC/BSP/IC as “primary regulators” with power to issue restitution orders and administrative fines up to ₱ 2 million plus ₱ 100 000/day. (Republic Act No. 11765 - The Lawphil Project) |
| Privacy & data-harassment | R.A. 10173 (Data Privacy Act of 2012) and NPC Circular 20-01 as amended by NPC Circular 22-02 (2022) | Makes “unbridled processing” of phone contacts a criminal offense; NPC may slap ₱ 5 million per act and impose a temporary or permanent ban on data processing. (Republic Act No. 10173 - LawPhil) |
| Cyber-harassment crimes | R.A. 10175 (Cybercrime Prevention Act of 2012) | Online threats, unjust vexation or libel committed “through a computer system” carry penalties one degree higher than the analog crimes in the Revised Penal Code. (Republic Act No. 10175 - LawPhil) |
3. SEC collection-conduct rules
SEC Memorandum Circular (MC) 18-2019 – Prohibition on Unfair Debt-Collection Practices
Banned acts: violence or threats, use of profane language, publishing the debt, contacting persons other than the borrower or guarantor, calls between 10 p.m. and 6 a.m., etc. (Identifying Illegal Online Lending Apps in the Philippines, SEC warns public against abusive online lending practices)MC 19-2019 – Mandatory registration of every online-lending platform (OLP); an unregistered app is per se illegal even if its owner is licensed. (Identifying Illegal Online Lending Apps in the Philippines)
MC 3-2022 – Interest/fee ceilings for small short-term consumer loans
Caps:- nominal interest ≤ 6 % per month
- effective interest + fees ≤ 15 % per month
- total cost of credit (all charges + penalties) ≤ 100 % of principal – a built-in deterrent to extortive rollover schemes. (Unreasonable Interest Rates for Online Loans in the Philippines, SEC ISSUES RULES TO IMPLEMENT BSP CEILINGS ... - Legal 500)
2021 Moratorium & follow-on advisories (2024-2025) – the SEC suspended new OLP registrations pending “review of abusive models” and continues to publish quarterly “DO NOT DOWNLOAD” lists. (SEC issues moratorium on new online lending apps in bid to curb ..., SEC warns public against abusive online lending practices)
Administrative bite: the SEC may (a) fine up to ₱ 1 million + ₱ 10 000/day, (b) revoke the Certificate of Authority, or (c) seek criminal prosecution under R.A. 9474/8556.
4. Privacy rules that outlaw contact-list spamming
NPC Circular 22-02 spells out that OLPs may not scrape an entire phonebook; they may only let a borrower pick guarantors/references. Contacting anyone else “for debt-collection” is deemed “unbridled processing,” punishable by a ban on data processing plus criminal charges.
Historic NPC enforcement:
- 2019: 26 apps banned for “debt shaming” (“Hello contacts, si Anna hindi nag-bayad!”). (NPC shuts down 26 online lending companies)
- 2021: JuanHand, Pesopop, CashJeep, Lemon Loan ordered off app stores. (Category Archive: Press Releases - National Privacy Commission)
- 2023: Pesopop hit with a temporary data-processing ban—the first time the NPC froze an app while an investigation was pending. ([PDF] IN RE: POPULUS LENDING CORPORATION (PESOPOP) AND ITS ...)
5. Criminal exposure of abusive collectors
| Offense | Law | Penalty range |
|---|---|---|
| Grave threats/serious coercion (e.g., “papatayin ka namin”) | Revised Penal Code §§ 282–285 + § 6, R.A. 10175 | Up to 6 years + one degree higher if via ICT |
| Unjust vexation / cyber-harassment | RPC § 287 + R.A. 10175 | Arresto menor to 6 months & 1 day; one degree higher online |
| Libel / Defamation (publishing borrower’s photo + “scammer”) | RPC § 355 + R.A. 10175 | Fine or prision correccional; higher online |
| Unauthorized processing of personal data | DPA §§ 25–35 | 1 yr – 7 yrs + ₱ 500 000–₱ 5 million |
Collectors have been arrested by the PNP Anti-Cybercrime Group on cyber-libel warrants issued by Manila and Quezon City courts since 2022.
6. Civil liabilities & jurisprudence
- Supreme Court, Viroomal v. Manila Credit (Dec 19 2023): re-affirmed that interest ≥ 2× legal rate is unconscionable; courts may void the note and award moral/exemplary damages. (SC Nullifies Exorbitant, Unconscionable Loan Interest Rate – Supreme Court of the Philippines)
- General Civil Code remedies: borrowers may sue for (a) moral damages for mental anguish, (b) exemplary damages to set a public example, and (c) an injunction to stop further harassment.
7. Enforcement snapshot 2019 – April 2025
| Year | SEC actions | NPC actions | Notable events |
|---|---|---|---|
| 2019 | Moratorium; 64 apps ordered delisted | 26 apps banned | First viral “debt-shaming” FB posts |
| 2021 | MC 3-2022 drafted; Google agrees to sweep Play Store | 4 apps ordered down (JuanHand et al.) | Senate resolutions filed |
| 2023 | 33 unregistered apps removed from Play Store | Pesopop temp ban | BSP Circular 1160 on consumer protection |
| 2024 | 18 apps revoked; SEC issues night-call rules | NPC fines two collection BPOs ₱ 14 M | |
| 2025 | Surity Cash license canceled (March 3) | Senate hearings grill SEC & NPC | Senator Gatchalian bill to jail abusive collectors up to 12 yrs (SEC cancels Surity Cash lending license, Senators probe threats vs online borrowers, question SEC memo) |
8. How to file a complaint
| Regulator | Scope | How to file | What to expect |
|---|---|---|---|
| SEC – Enforcement & Investor Protection Dept. | Any unfair collection by an SEC-licensed lending/financing company or unregistered app | Email : epd@sec.gov.ph or online form citing MC 18-2019 violations; attach screenshots, call logs, loan contract. ([DOC] 2019CGFD_UPDATED-COMPLAINT-FORM_MC18.docx) | Investigation → show-cause order → possible revocation/fine; complainant may be asked to testify but no filing fee. |
| NPC – Complaints & Investigation Division | Privacy breaches (contact scraping, public shaming posts) | File verified complaint at picc.ph/npc-complaints or any e-mail address given in NPC site; supply proof of unauthorized processing. | Mediation within 15 days; if unresolved, formal investigation; NPC may order takedown or ban and impose fines. |
| PNP ACG / NBI CCD | Criminal threats, cyber-libel | Execute sworn statement; submit evidence; agency will request warrant from cyber-court | Warrants often served within 10 days; prosecution in RTC cyber-court. |
9. Borrower self-defence checklist
- Document everything – keep screenshots/recordings of calls, SMS, app notifications.
- Revoke app permissions in Android/iOS settings; NPC says lenders cannot force perpetual access once the loan is booked.
- Send a cease-and-desist e-mail quoting MC 18-2019 §§ 2-4; copy the SEC/NPC.
- Pay only what is lawful – verify whether total charges already equal 100 % of the principal (the legal ceiling). (Unreasonable Interest Rates for Online Loans in the Philippines)
- Seek psychosocial help – include harassment trauma in damages claim; courts have begun awarding ₱ 50 000–₱ 200 000 moral damages in small-claims harassment suits.
10. Forthcoming reforms
- Senate Bill 2784 (filed April 2025): elevates unfair collection to a distinct crime (6–12 yrs jail) and requires apps—not just companies—to secure a prior SEC permit; pending committee report. (Senators probe threats vs online borrowers, question SEC memo)
- SEC draft MC on “AI collectors” – would ban synthetic-voice automated calls that fail a fairness test (public consultation closes June 2025).
- BSP’s Consumer Care Portal will integrate SEC/NPC hotlines by Q4 2025, giving borrowers a single submission point.
11. Key take-aways for practitioners
- Multiple regulators overlap; pick the forum that matches the gravamen (privacy vs. lending license vs. cybercrime).
- Evidence is mostly digital—screenshots with metadata intact are decisive.
- Cost-cap rules (MC 3-2022) provide a quick audit test: once charges hit 100 % of principal the obligation stops growing; any further collection is “unfair.”
- Collectors face not only administrative fines but real jail time under the Cybercrime Act and the DPA.
- For class-type suits, consider a representative action under Rule 73 of the Rules of Civil Procedure in conjunction with Article 48 of the Civil Code (common interest).
Conclusion
As of April 30 2025 the Philippine regime against online-lending harassment is one of the most detailed in ASEAN: statutory rights (R.A. 11765 & 10173), granular SEC and NPC circulars, criminal sanctions, and a growing body of jurisprudence. Borrowers have multiple, practical avenues for redress—and lenders, ample notice that “debt shaming” is no longer a viable business model.