Online Lending App Harassment in the Philippines
Borrowers’ Rights & Complete Complaint Process
(All citations are to Philippine laws, regulations, and official circulars; references are provided in-text because the user asked that no external search be made.)
1. What Counts as “Harassment”?
| Conduct | Typical Examples | Legal Basis for Prohibition |
|---|---|---|
| Threats, intimidation, profanities | “We will post your debt on Facebook,” “We’ll have you arrested.” | SEC Memorandum Circular (MC) 18-2019 §4(g); Revised Penal Code (RPC) arts. 282, 287 |
| Public shaming / doxxing | Text‐blasting your contacts, posting your photo with “DELINQUENT” label | Data Privacy Act (RA 10173) §§25–26; Cybercrime Act (RA 10175) §6; Libel (RPC art. 355) |
| Contacting people not liable on the loan | Messaging employers, relatives, phone book contacts | SEC MC 18-2019 §4(h); FPSCPA (RA 11765) §6(f) |
| Excessive or untimely calls | Calls before 6 AM, after 10 PM, or >10× a day | Bangko Sentral ng Pilipinas (BSP) Circular 1133-2021 Pt. IX; SEC MC 18-2019 §4(b) |
| False representations | Claiming to be “NBI Task Force,” “Law Firm” when untrue | Consumers Act (RA 7394) art. 50; RPC art. 177 (Usurpation of authority) |
2. Your Core Rights
Right to Privacy & Data Proportionality Apps may only access device data necessary for credit assessment; mass contact scraping is illegal. — Data Privacy Act §18; NPC Advisory Opinion 2019-01
Right to Fair & Respectful Collection No threats, violence, obscene language, or public disclosure. — SEC MC 18-2019; FPSCPA (RA 11765) §6
Right to Accurate, Transparent Charges Interest, penalties, and fees must be in the disclosure statement (Truth-in-Lending Act, RA 3765; SEC MC 19-2019).
Right to a Formal Complaint Channel Every lending/financing company must maintain an Internal Dispute Resolution (IDR) unit that answers within 10 business days. — SEC MC 18-2019 §6; BSP Circular 1160-2023 (Consumer Protection Framework)
Right to Redress and Damages Civil damages and administrative fines; criminal liability when harassment rises to grave threats, unjust vexation, libel, or cybercrime.
3. Agencies & Jurisdiction
| Agency | When to Complain | Filing Mode |
|---|---|---|
| Securities & Exchange Commission (SEC), Corporate Governance and Finance Dept. (CGFD) | Any abusive act by a lending or financing company OR by its third-party collection agent | Email cgfd_md@sec.gov.ph with sworn complaint form + evidence; or personally at SEC main/extension offices |
| Bangko Sentral ng Pilipinas (BSP) | Harassment by BSP-supervised digital banks or EMI-licensed fintechs | BSP Online Buddy (BOB) portal; or consumer@bsp.gov.ph |
| National Privacy Commission (NPC) | Privacy breaches: contact scraping, doxxing, unauthorized disclosure | complaints@privacy.gov.ph; filing via NPC Complaint Management System |
| Department of Trade & Industry (DTI) | Unregistered or mis-represented lending apps in e-commerce platforms | DTI Fair Trade Enforcement Bureau (FTEB) hotline 1-DUKOT (138468) |
| Philippine National Police – Anti-Cybercrime Group (PNP-ACG) | Threats, libel, extortion committed via electronic means | Walk-in or e-complaint at www.acg.pnp.gov.ph |
| Barangay, Lupon or Courts | Unjust Vexation (RPC art. 287), small claims, civil damages | Barangay conciliation (if parties in same barangay) then regular courts |
4. Step-by-Step Complaint Roadmap
Document Everything
- Screenshots or screen-recordings of calls/texts/app notifications
- Call logs, threat voice messages
- Proof of payments made
- Copy of loan agreement & disclosure statement
Activate Internal Dispute Resolution (IDR)
- Email the lender’s official customer-care address (found on SEC registration or app store listing).
- Demand: (a) cessation of harassment, (b) itemized statement, (c) correction of wrong charges.
- Give 5 to 10 banking days to respond (per SEC MC 18-2019).
Escalate to Primary Regulator
- SEC: Use Complaint Form 29-A (downloadable) + notarized affidavit.
- BSP: Complete BOB webform; attach proof of IDR attempt.
- Regulators will issue a Show-Cause Order to the company within ~15 days.
Parallel Privacy Complaint (if data misuse)
- File at NPC no earlier than 15 days after written request to the lender to correct/delete data (NPC Circular 16-01).
- NPC investigates, may order up to ₱5 million fines per violation + cease-and-desist order.
Criminal or Civil Action (optional but impactful)
- File in the Office of the City/Provincial Prosecutor for grave threats, libel, etc.
- Small Claims (≤ ₱400k) or ordinary civil action for damages under Art. 32 & 33, Civil Code.
Keep Tabs on SEC “List of Penalties”
- The SEC posts weekly advisories suspending abusive apps. If your lender is suspended, you still owe the principal but can dispute illegal fees.
5. Possible Outcomes & Remedies
| Venue | Remedies Available |
|---|---|
| SEC Administrative Case | Revocation of Certificate of Authority; fines up to ₱1 million + ₱10k/day; order to purge data & cease collections |
| BSP Mediation / Adjudication | Binding order to refund charges; corrective actions; fines on directors/officers |
| NPC Decision | Deletion of illegally gathered contacts; public apology; indemnity for moral damages |
| Criminal Court | Imprisonment (e.g., 6 mo.–6 yrs. for libel); damages; protective orders |
| Civil Court | Actual, moral, exemplary damages; attorney’s fees; injunctive relief |
6. Preventive Measures Before Borrowing
- Check SEC “List of Registered Lending & Financing Companies”; avoid apps without Certificates of Authority.
- Read App Permissions: loan apps need only camera (ID selfie) and storage; contact list & location access are red flags.
- Keep Borrowing Within Ability to Pay: renegotiate early; ask for restructuring (allowed by SEC MC 28-2020 pandemic guidelines).
- Know the Statutory Limits: default interest & penalties cannot be unconscionable (Civil Code Art. 1229; BSP ceiling guidelines for interest on consumer loans).
- Maintain Evidence: screenshots of T-and-C and payment receipts from Day 1.
7. Frequently Asked Questions
| Question | Answer |
|---|---|
| Can the lender post my face on Facebook? | No. Public disclosure of personal data is punishable under RA 10173 and RA 10175. |
| Will SEC protect me even if I signed a consent clause? | Yes. Any waiver of rights against harassment or privacy violations is void for being contrary to law and public policy (Civil Code Art. 6; Data Privacy Act §3). |
| Is non-payment a crime? | No, non-payment of civil debt is not criminal unless accompanied by fraud (B.P. 22—bouncing check, estafa). |
| Can they garnish my salary? | Only through a final court judgment and writ of garnishment; extra-judicial deductions violate Labor Code Art. 116. |
| What if the app is based abroad? | If the borrower is in the Philippines and harassment occurs here, Philippine cybercrime laws apply; SEC can request NTC to geo-block the app. |
8. Sample Template: Initial Complaint to SEC (extract)
Subject: Complaint vs. XYZ Online Lending App for Abusive Collection
Facts: On 15 May 2025 I borrowed ₱5,000 via the XYZ app…
Violations Alleged: SEC MC 18-2019 §§4(b), 4(g); RA 10173 §§25-26; RA 11765 §6.
Relief Sought: (1) Immediate cease-and-desist order; (2) Deletion of my phone contacts; (3) Administrative penalties.
Attachments: Screenshots (Annex “A”), Voice recording (Annex “B”), Loan contract (Annex “C”).
Verification & Certification of Non-Forum Shopping (notarized).
Key Takeaways
- Record, Report, Resist: Keep evidence, lodge a formal IDR request, escalate to SEC/BSP/NPC.
- Harassment is illegal regardless of any “blanket consent” you may have clicked.
- Multiple remedies—administrative, civil, criminal—can run simultaneously.
- Early action curbs abusive behavior and can even erase unlawful penalties.
Need practical help?
- SEC Hotline: (02) 8818-5990 (8 AM-5 PM, weekdays)
- BSP Consumer Affairs: (02) 8708-7087
- NPC Help Desk: (632) 8234-2228
- PNP-ACG Text: 0917-449-8686
Stay informed, know your rights, and don’t hesitate to enforce them.