The rise of Financial Technology (FinTech) in the Philippines has democratized access to credit through Online Lending Applications (OLAs). However, this convenience often comes with a dark side: predatory interest rates and aggressive collection practices. If you are struggling with overdue online loans, it is essential to understand your rights under Philippine law.

1. The Legality of Interest Rates

In the Philippines, the usury law was suspended decades ago, leading to a misconception that lenders can charge whatever they want. However, the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) have recently imposed ceilings to curb predatory pricing.

BSP Circular No. 1133 (Series of 2021): For small-value, short-term consumer loans (like most OLAs), the nominal interest rate is capped at 6% per month (approximately 0.2% per day).
Total Cost of Credit: The total fees (including interest, processing fees, etc.) cannot exceed 15% per month.
Penalty Caps: Penalties for late payment are capped at 1% per month of the outstanding amount.

Legal Note: If your lender is charging significantly higher than these rates, they may be in violation of BSP and SEC regulations, making the excessive portion of the interest legally questionable.

2. Harassment and Unfair Collection Practices

One of the biggest grievances against OLAs is "debt shaming." Under SEC Memorandum Circular No. 18 (Series of 2019), the following acts are strictly prohibited:

Contacting People Without Consent: Accessing your phone’s contact list to message your friends, family, or employers about your debt.
Threats and Profanity: Using threats of violence, obscene language, or insults to coerce payment.
Public Shaming: Posting your name or photo on social media or in public spaces as a "scammer" or "delinquent."
Misrepresentation: Claiming to be a lawyer, a court official, or a police officer to intimidate you into paying.
Unreasonable Hours: Contacting you between 10:00 PM and 6:00 AM, unless you specifically consented to those hours.

3. Data Privacy Violations

Most OLAs require permissions to access your contacts, gallery, and location. While you may have clicked "Allow," the Data Privacy Act of 2012 (RA 10173) still protects you.

Lenders are "Personal Information Controllers." They cannot use your data for purposes other than what was declared (i.e., credit scoring). Using your private photos or contact list to harass you is a criminal offense punishable by imprisonment and heavy fines.

4. Can You Go to Jail for Unpaid Loans?

The short answer is No. Under Article III, Section 20 of the 1987 Philippine Constitution: "No person shall be imprisoned for debt." A lender can sue you in a Small Claims Court to recover the money, but they cannot have you arrested for simply being unable to pay a civil obligation. However, you can face criminal charges if you used a fake identity or issued a "bouncing check" (BP 22).

5. Steps to Take If You Are Being Harassed

If you find yourself buried in debt and facing harassment, take these steps:

Document Everything: Save screenshots of threatening texts, record calls (if possible), and keep a log of all unauthorized contacts to your friends/family.
Verify the Lender: Check the SEC List of Recorded Lending Companies. If they aren't on it, they are operating illegally.
File a Formal Complaint:

SEC: Send a complaint to the Corporate Governance and Finance Department.
National Privacy Commission (NPC): File a complaint if they leaked your personal data or accessed your contacts illegally.
PNP Anti-Cybercrime Group: If there are direct threats to your physical safety or grave defamation.

Cease and Desist: Send a formal email to the OLA stating that you are aware of your rights under SEC MC No. 18 and that you will escalate the matter if the harassment continues.

Summary Table: Your Rights vs. OLA Violations

The Situation	Your Right / The Law
Interest > 6% monthly	Violation of BSP Circular 1133.
Contacting your boss	Violation of SEC MC No. 18 & Data Privacy Act.
Threats of jail time	Misrepresentation (Debt is a civil, not criminal, matter).
Social media shaming	Cyber-Libel and Privacy violations.

Would you like me to draft a formal Cease and Desist letter that you can send to a lending company to demand they stop the harassment?