In the Philippines, the rise of Financial Technology (FinTech) has brought convenience through Online Lending Apps (OLAs). However, this convenience often comes with a dark side: predatory collection practices. One of the most common threats used by unscrupulous lenders is the "public shaming" tactic—threatening to post a borrower's government ID and "liveness" selfie on social media to coerce payment.
If you are facing these threats, it is crucial to understand that such actions are not just "aggressive collection"; they are illegal.
1. The Data Privacy Act of 2012 (RA 10173)
The moment you upload your ID and selfie to an app, you become a Data Subject, and the OLA becomes a Personal Information Controller (PIC). Under the Data Privacy Act (DPA), they are bound by strict principles:
- Principle of Purpose Limitation: Your data was collected for identity verification and credit scoring. Using that data to shame or harass you is a violation of the original purpose.
- Unauthorized Processing: Posting your personal information (ID and photo) on social media without your explicit consent for that specific purpose is a criminal offense.
- Malicious Disclosure: Under Section 31 of the DPA, any person who, with malice or in bad faith, discloses unwarranted or false information relative to any personal information is subject to imprisonment (1 to 3 years) and hefty fines (PHP 500,000 to PHP 2,000,000).
2. SEC Memorandum Circular No. 18 (Series of 2019)
The Securities and Exchange Commission (SEC) has laid down specific "Prohibited Unjust Debt Collection Practices." It explicitly forbids:
- Public Humiliation: Publishing or posting the names and other personal information of borrowers who allegedly refuse to pay.
- Contacting Third Parties: Accessing the borrower’s contacts list or messaging people in the borrower’s phone book (who are not co-makers or guarantors).
- Threats and Harassment: Using threats of violence or other criminal means to harm the physical person, reputation, or property of any person.
Violation of this circular can lead to the revocation of the OLA’s Certificate of Authority to operate.
3. Cyberlibel and the Cybercrime Prevention Act (RA 10175)
If an OLA actually follows through and posts your photo with captions calling you a "scammer" or "thief," they may be liable for Cyberlibel.
- Defamation: Attributing a vice, defect, or crime to a person publicly to cause dishonor or contempt.
- Online Aggravation: Under RA 10175, libel committed through a computer system carries a penalty one degree higher than traditional libel.
4. Steps to Take: Your Legal Remedies
If you are currently being threatened, do not panic. Follow these steps to build your case:
- Document Everything: Take screenshots of the threats, the phone numbers used, the names of the agents, and the specific app involved. Do not delete these conversations.
- Cease Communication: Once you have documented the threats, you are not legally obligated to engage with harassers.
- File a Complaint with the NPC: Use the National Privacy Commission’s (NPC) online complaints portal. They have the power to issue "Cease and Desist" orders against apps.
- Report to the SEC: File a formal complaint with the SEC Corporate Governance and Finance Department. Provide your evidence of harassment.
- Coordinate with the PNP-ACG: If the threats involve extortion or grave threats, contact the Philippine National Police - Anti-Cybercrime Group (PNP-ACG).
Summary of Legal Protections
| Law/Regulation | Protection Offered | Key Violation |
|---|---|---|
| RA 10173 (DPA) | Protects your ID and Selfie | Unauthorized/Malicious Disclosure |
| SEC MC No. 18 | Regulates collection behavior | Public shaming & Contacting contacts |
| RA 10175 | Protects your reputation online | Cyberlibel & Online Harassment |
| Revised Penal Code | Protects against coercion | Grave Threats & Unjust Vexation |
Note: A debt is a civil obligation, not a criminal one. In the Philippines, "No person shall be imprisoned for debt" (Article III, Section 20, 1987 Constitution). While you still owe the legitimate principal amount, the lender has no right to break the law to collect it.
Would you like me to draft a formal demand letter or a template for a complaint to the National Privacy Commission based on these laws?