The rise of Financial Technology (FinTech) in the Philippines has made credit more accessible through Online Lending Applications (OLAs). However, this convenience has also birthed a predatory industry characterized by "loan sharks" who engage in illegal collection practices, data privacy violations, and outright harassment.
If you are a victim of these apps, it is crucial to understand that Philippine law protects you against threats and shaming, regardless of whether you owe money.
1. Recognizing Illegal Collection Practices
Under SEC Memorandum Circular No. 18 (Series of 2019), the Securities and Exchange Commission (SEC) explicitly prohibits "unfair debt collection practices." You are being harassed if the OLA agent engages in:
- Threats of Violence: Any threat to inflict physical harm on you or your family.
- Social Shaming: Contacting people in your phone’s contact list who are not co-makers or guarantors.
- Profane Language: Using obscene or insulting language to intimidate you.
- False Representation: Claiming to be a lawyer, a court official, or a police officer to scare you into paying.
- Public Disclosure: Posting your name, photo, or "wanted" posters on social media platforms.
2. Relevant Laws for Protection
When filing a complaint, it is helpful to cite the specific laws being violated:
- R.A. 10173 (Data Privacy Act of 2012): Most OLAs scrape your contact list and gallery without informed consent. Using this data to harass third parties is a major criminal offense.
- R.A. 10175 (Cybercrime Prevention Act of 2012): Harassment, online libel, and identity theft fall under this jurisdiction.
- R.A. 3765 (Truth in Lending Act): Many OLAs fail to disclose the true cost of credit, including hidden fees and exorbitant interest rates.
- Revised Penal Code (Grave/Light Coercion and Threats): For direct threats to your person or property.
3. Step-by-Step: How to File a Complaint
Step A: Gather Evidence
Before deleting the app or blocking the numbers, document everything:
- Screenshots: Capture all threatening text messages, emails, and social media posts.
- Call Logs: Record the time and frequency of calls.
- App Details: Save the OLA’s name, developer, and the "Certificate of Authority" (CA) number if they claim to have one.
Step B: File with the SEC
The Securities and Exchange Commission (SEC) is the primary regulator of lending companies.
- Action: Check the SEC website to see if the OLA is registered. Even if they are registered, you can file a formal complaint for "Unfair Debt Collection Practices."
- Portal: Use the SEC i-Message platform or email
cgfd_enforcement@sec.gov.ph.
Step C: File with the National Privacy Commission (NPC)
If the lender accessed your contacts or is shaming you online, the NPC is your strongest ally.
- Action: File a "Formal Complaint" for violation of the Data Privacy Act.
- Portal: Visit the NPC website (privacy.gov.ph) and use their online complaints portal.
Step D: Report to the PNP-ACG or NBI
For immediate threats to life and safety:
- PNP Anti-Cybercrime Group (ACG): Visit their office at Camp Crame or report via their Facebook page.
- NBI Cybercrime Division: File a report for online libel or grave threats.
4. Summary Table of Resources
| Agency | Primary Concern | Contact Method |
|---|---|---|
| SEC | Unregistered OLAs / Illegal Collection | cgfd_enforcement@sec.gov.ph |
| NPC | Data Privacy / Contact Tracing / Shaming | complaints@privacy.gov.ph |
| PNP-ACG | Cyber-harassment / Threats / Extortion | acg@pnp.gov.ph |
| Google/Apple | App Store Violations | "Report an App" in Store |
Important Reminders
Do not be intimidated by "legal notices" sent via text. Formal court summons are served physically by a court sheriff, not via SMS or Viber. Debt is a civil matter; in the Philippines, no one can be imprisoned for the non-payment of a debt (Art. III, Sec. 20, 1987 Constitution), unless there is fraud or "estafa" involved.
Would you like me to draft a formal demand letter or a complaint template that you can use to send to the National Privacy Commission?