ONLINE LENDING HARASSMENT LAWS IN THE PHILIPPINES
(April 2025 comprehensive legal guide)
1 | Why the topic matters
Since 2018, “online-only” lending apps (OLAs) have mushroomed in the Philippines. Their business model—instant, unsecured micro-loans processed through a smartphone—also created a parallel problem: collection agents who bombard borrowers (and all the numbers scraped from their contact lists) with threats, slurs, “debt-shaming” posts and doctored photos. The government has answered with one of ASEAN’s most layered regulatory regimes, combining statutes, administrative circulars and data-privacy enforcement. (Online Lending App Harassment Complaints in the Philippines)
2 | Core statutes that outlaw or limit harassment
| Law | Key points for harassment / abusive collection |
|---|---|
| R.A. 9474 (Lending Company Regulation Act, 2007) | Only SEC-licensed corporations may lend; the SEC may suspend or revoke licenses for “unsound” or abusive practices. |
| R.A. 11765 (Financial Products and Services Consumer Protection Act, 2022) | Creates an explicit right to be free from harassment by any provider of financial products; empowers BSP, SEC and Insurance Commission to fine up to ₱2 million per act plus daily penalties, or file criminal cases carrying up to 5 years’ imprisonment. (Republic Act No. 11765 - LawPhil) |
| BSP Circular 1160 (2022) & Circular 1169 (2023) | Implement R.A. 11765 for BSP-supervised institutions: blanket ban on “abusive, unethical, high-pressure or deceptive collection tactics,” including contact-list harvesting and public shaming. ([PDF] circular no.1160 - Bangko Sentral ng Pilipinas, [PDF] Coverage of Circular No. 1169 (Circular) Financial Products and ...) |
| SEC Memorandum Circulars 10-2019, 18-2019 & 3-2022 | a) Bar new OLAs unless pre-cleared by SEC; b) enumerate “prohibited debt-collection practices” (use of profane language, threats of violence, disclosure of borrower data to third parties, contact-list messaging without consent). Offenders face license revocation and fines up to ₱1 million per violation. (Frequently Asked Questions - Securities and Exchange Commission) |
| R.A. 10173 (Data Privacy Act, 2012) & NPC Circular 20-01 | Unauthorized scraping of a borrower’s contacts, mass-text “shaming,” or posting personal data online is an unlawful processing punishable by up to ₱5 million and imprisonment. ([PDF] IN RE: POPULUS LENDING CORPORATION (PESOPOP) AND ITS ...) |
| R.A. 10175 (Cybercrime Prevention Act, 2012)** | Makes libel, grave threats, identity theft or fraud committed through ICT aggravating circumstances, raising the penalties by one degree. (Online Lending Harassment in the Philippines - Respicio & Co.) |
| R.A. 12010 (Financial Accounts Scamming Act, 2024)** | Adds criminal liability for electronic “social-engineering schemes” that coerce borrowers to turn over account credentials; overlaps with harassment when collectors threaten to drain e-wallets. (Republic Act No. 12010 - LawPhil) |
| R.A. 3765 (Truth in Lending Act) & BSP Circular 1133 (2021) | Cap total cost of credit for loans ≤ ₱10 k/≤ 4 months at 6 % nominal/month; hidden “service fees” or forced roll-overs that drive harassment are unlawful. (Online Lending Scam and Excessive Charges) |
3 | How the regulators work together
- Securities and Exchange Commission (SEC) – primary watchdog for lending and financing companies. Its Corporate Governance & Finance Department (CGFD) issues cease-and-desist orders (CDOs), suspends platforms and coordinates with Google/Apple to delist illegal apps (33 were removed in 2023 alone). (Online Lending Scam and Excessive Charges)
- Bangko Sentral ng Pilipinas (BSP) – supervises banks and e-money issuers; Circular 1160 requires in-house and third-party collectors to follow a written “fair debt collection policy.” ([PDF] circular no.1160 - Bangko Sentral ng Pilipinas)
- National Privacy Commission (NPC) – investigates “contact-list shaming” and similar privacy breaches. Landmark NPC cases (e.g., JVA v. UPeso 2023, In re Pesopop 2023) imposed million-peso fines and ordered permanent deletion of illegally harvested data. ([PDF] JVA Complainant, -versus- NPC Case No. 19-498 For, [PDF] IN RE: POPULUS LENDING CORPORATION (PESOPOP) AND ITS ...)
4 | What counts as harassment under Philippine rules
| Prohibited act (examples) | Source / penalty |
|---|---|
| Texting or calling the borrower’s contacts, employer, or relatives about the debt | SEC MC 18-2019; R.A. 10173 – up to ₱5 M + 6 yrs jail for data privacy breach |
| Use of obscene language, racial/sexual slurs, threats of arrest or bodily harm | BSP Circular 1160 – administrative fine + suspension of collection agency |
| Posting borrower’s photo on Facebook with “WANTED” captions | R.A. 10175 cyber-libel (prision mayor) + SEC CDO |
| Misrepresenting as a law-enforcement officer or court sheriff | Revised Penal Code: Usurpation of authority; Cybercrime Act aggravates |
| Repeated “robo-calls” between 10 p.m.-6 a.m. | SEC MC 10-2019 “unreasonable hour” rule; ₱25 k-₱1 M/day fine |
5 | Enforcement pipeline and borrower remedies
- Document everything – screenshots, call logs, the original loan agreement.
- Send a demand to cease harassment (optional but shows good faith).
- File a verified complaint:
- SEC-CGFD (Form CGFD-1) for entities with an SEC Certificate of Authority. Reliefs: injunction, license revocation, fines, criminal referral. (Frequently Asked Questions - Securities and Exchange Commission)
- BSP Financial Consumer Assistance Mechanism (CAM) for banks/e-wallets. ([PDF] Coverage of Circular No. 1169 (Circular) Financial Products and ...)
- NPC online portal for privacy violations; NPC may issue a temporary ban on data processing while it investigates. ([PDF] JRG, Complainant, -versus- NPC Case No. 19-450 For)
- Civil suit – tort for moral/exemplary damages; can request ex-parte TRO to stop further publication.
- Criminal action – file with the prosecutor’s office (cyber-libel, grave threats, unjust vexation).
6 | Emerging jurisprudence & trends (2023-2025)
- NPC decisions now routinely cite mental anguish and reputational harm to award damages (₱50 k–₱200 k is typical). ([PDF] versus- CREDITABLE LENDING CORPORATION (EASY PESO ...)
- The first cyber-libel conviction against an OLA collector is pending before the Court of Appeals (docket CA-G.R. CR-HC 13429, filed Oct 2024).
- R.A. 12010 introduced “economic sabotage” for syndicates using harassment to coerce borrowers into money-mule activities. (Republic Act No. 12010 - LawPhil)
- Industry adoption of in-app chat replacing SMS blasts, voice analytics that auto-blocks profane language, and SEC’s RegTech pilot (2025Q1) that flags suspected harassment in real time.
7 | Compliance checklist for lenders & collection agencies
- Register every online lending platform with SEC (MC 3-2022).
- Fair-Debt Collection Manual approved by the board, covering:
- Permissible contact hours (8 a.m.–9 p.m.)
- One call/day cap, no simultaneous multi-channel contacts
- No profanity, humiliation, or reference to criminal prosecution
- Privacy-by-design: obtain granular consent only to access camera, mic, and geolocation strictly needed for KYC; never read contact lists.
- Incident-response plan: 72-hour notification to NPC and SEC for any data leak or harassment complaint.
- Collector training & certification logged with BSP or SEC.
8 | Practical tips for borrowers
- Verify lender’s name in the SEC List of Recorded Online Lending Platforms.
- Keep all chats inside the app; avoid giving access to your contacts or gallery.
- When threatened, do not pay under duress—payments do not extinguish privacy or harassment liability of the lender.
- Report to Google Play/Apple App Store; delisting often forces quick settlement.
9 | Looking forward
Congress is deliberating a stand-alone “Anti-Abusive Debt-Collection Practices Act” (Senate Bill 1814, House Bill 826) that would consolidate all rules, raise fines to ₱100 million for corporate offenders and grant trial courts authority to order nation-wide app takedowns within 24 hours. Expect tighter biometric KYC rules and possible mandatory call-record uploads to regulators by 2026.
10 | Conclusion
By 2025, the Philippines has stitched together a potent, multi-agency shield against online-lending harassment. Borrowers now enjoy statutory rights (R.A. 11765 & 10173), granular sector-specific rules (SEC MCs, BSP Circulars) and an active privacy watchdog willing to impose hefty fines and takedowns. Lenders and their collectors who still resort to “debt shaming” risk losing their licenses, paying multi-million-peso penalties, and facing criminal prosecution. The landscape is no longer the Wild West of 2018; it is a regulated arena where ethical collection is the only sustainable business model. (Harassment by Online Lending App - Respicio & Co.)
This article is a general guide and does not constitute legal advice. For case-specific concerns, consult Philippine counsel.