Payment-Extension Request Letters to Online Lending Companies in the Philippines (Comprehensive Legal and Practical Guide, 2025)

1. Why Borrowers Write Payment-Extension Letters

Online lending apps make it deceptively easy to take short-term loans, but the Civil Code (Arts. 1305, 1306) still treats each loan as a consensual contract: performance is due on the exact date agreed. A payment-extension request letter is the borrower’s formal offer to vary that date—typically by granting a grace period, spreading instalments over a longer term, or even lowering the interest or penalty rate. Because novation (Art. 1291) or modification of an obligation requires the lender’s consent, the letter is essential evidence of good faith and an invitation to renegotiate before default, collections harassment, or credit-score damage ensue.

2. Legal Framework

Source	Key Provisions Relevant to Extension Requests
Lending Company Regulation Act (RA 9474) & SEC IRR	Only SEC-licensed entities may extend consumer credit outside the banking system; they must disclose all finance charges and agree to amendments in writing.
Truth in Lending Act (RA 3765)	Any change in payment schedule must be disclosed “clearly and conspicuously.”
Financial Products and Services Consumer Protection Act (RA 11765, 2022)	Lenders must act “fairly, honestly and professionally.” Unreasonable refusal to entertain restructuring may expose them to SEC/BSP sanctions.
Civil Code & Special Laws	• Force majeure (Art. 1174) and loss of the thing (Art. 1262) may excuse delay, but these are narrow. • Debtor and creditor may agree to a grace period (Art. 1308). • Dacion en pago and compromise agreements remain available alternatives.
Data Privacy Act (RA 10173)	Letters often contain salary slips, medical certificates, etc.—lenders become “personal-information controllers” and owe confidentiality.
Anti-Harassment & Collection Regulations (SEC Memorandum Circular 18-2019; BSP Circular 1133-2022)	Aggressive calls/texts are punishable; keeping a documented trail of extension efforts helps if you must complain.
COVID-19 “Bayanihan” Moratoria (RAs 11469, 11494, 2020)	Now lapsed, but crystallised the precedent that State-imposed grace periods are lawful—and your letter can invoke the same public-policy rationale of temporary relief.

3. Borrower Rights & Lender Duties During Negotiation

Right to Receive an Updated Amortisation Schedule (RA 3765).
Right to Reasonable Terms under the FCP Act—SEC can penalise unconscionable interest or penalties (>6%/month is presumptively unconscionable per Supreme Court jurisprudence).
Right Against Public Shaming & Excessive Contact.
Right to Escalate disputes to the SEC’s Philsys-Complaint Handling Mechanism (FinReg CHB) or BSP’s Consumer Assistance Mechanism if the lender is a bank/e-money issuer.
Duty of the Borrower to substantiate hardship (e.g., job loss, illness) and propose a specific, realistic schedule.

4. Timing & Strategy

Stage	Practical Tip
≥ 14 days before due date	Send letter early; attach supporting documents.
7 days after letter	Follow up by email/app chat; request acknowledgment.
Upon lender counter-offer	Respond in writing; negotiate interest, penalty waivers, or fees (processing, amendment).
If no reply within 15 days	Send a second demand marked “Final Request Before Complaint.”
Upon denial/unfair terms	File a Financial Consumer Complaint with SEC (Form FCP-001) or BSP if applicable.

5. Essential Parts of the Letter

Header & Identifiers Full name, address, mobile, e-mail, Loan/Application ID, date.
Opening Paragraph

“I am writing to respectfully request an extension of the due date for my loan instalment of PHP ___, originally falling on ___.”
Grounds (Hardship Statement) State facts: loss of employment, unforeseen medical expenses, reduction of work hours, disaster, etc.
Specific Proposal Pick one:
- Single Extension: “Move the due date to ___ (30 days later).”
- Staggered Payment: “Split the PHP ___ into two equal payments on ___ and ___.”
- Loan Restructuring: “Amortise the remaining balance over six months at the original interest rate.”
Supporting Documents Proof of hardship: termination letter, medical certificate, calamity report, bank statement.
Good-Faith Commitment “I remain committed to settling my obligations and maintain my account in good standing.”
Data-Privacy Consent (optional but prudent) “I authorise you to process the attached documents solely for evaluating this request, in compliance with RA 10173.”
Call to Action “Kindly confirm acceptance or advise alternative terms within five (5) business days.”
Sign-off Wet or digital signature (valid under RA 8792), printed name.

Sample Letter (English)

[Your Name] [Complete Address] [Date]

[Lender’s Registered Name] Attn: Remedial Management / Collections Department

Re: Loan No. [123-456-789] – Request for Payment Extension

Dear Sir/Madam:

I hope this message finds you well. I am mindful of my loan instalment of PHP 20,000 falling due on August 15 2025. Unfortunately, I was laid off on July 2 2025 as evidenced by the attached Certificate of Employment and Separation issued by ABC Manufacturing Corp.

In view of this unforeseen circumstance, I respectfully request a 30-day grace period, moving the due date to September 14 2025, without additional penalty or interest. Alternatively, I am willing to pay PHP 10,000 on August 15 and the balance on September 14, together with contractual interest.

I remain committed to my obligations and intend no default. Kindly confirm acceptance or propose other workable terms within five (5) business days. I may be reached at 09xx-xxx-xxxx or email@example.com.

Thank you for your understanding and consideration.

Respectfully yours,

[Signature] Juan Dela Cruz TIN 123-456-789-000

(Attach: Separation Letter, Government ID, Latest Payslip)

6. Delivery & Evidence

Method	Proof of Service
In-app “Help” chat	Screenshot with date/time stamp.
E-mail	“Sent” copy + auto-acknowledgment.
Registered Mail	Registry receipt + first-class postage stamp + tracking slip.
Personal Delivery	Lender’s receiving copy with signature.

Keep originals for at least five (5) years (Civil Code prescriptive period for written contracts).

7. What Happens Next

Acceptance in Writing → Amendatory contract is perfected.
Counter-Offer → Negotiate. Get any compromise written & countersigned.
Silence/Denial → Borrower must choose:
- Pay as scheduled (avoids default); or
- Default but record efforts; then raise equitable defenses if sued.
Collection Activities must still comply with SEC/BSP rules. If harassment occurs:
- Document calls/messages.
- File a sworn complaint (SEC CGFD Form 20-23) with screenshots.

8. Common Lender Counter-Proposals & How to Respond

Lender Proposal	Legality	Borrower Response
Increase interest by ≥ 3%/month	Likely unconscionable; violates RA 11765 & jurisprudence (Medel v. CA).	Offer lower spread or shorter term.
Add “processing fee” of PHP 1,000	Allowed if disclosed & reasonable; must appear in amended Disclosure Statement (RA 3765).	Ask for waiver; cite prior prompt payment record.
Require post-dated checks	Valid but optional; you may suggest auto-debit or GCash to avoid B.P. 22 risk.
Require guarantor	Allowed; but new guarantor must sign a separate deed; ensure he/she understands obligations.

9. Remedies if Negotiations Fail

SEC Mediation & Adjudication Division – zero filing fee for amounts ≤ PHP 500K.
Barangay Katarungang Pambarangay may take cognizance if both parties reside in the same city/municipality (less common with corporate lenders).
Regional Trial Court / Metropolitan Trial Court – last resort; court may approve a Judicial Restructuring Plan (Rule 16, Financial Rehabilitation Rules), though usually applied to corporations.
Consumer Arbitration under RA 11765 (awaiting full IRR—projected 2025 rollout).

10. Special Topics

Interest-Rate Ceilings for Payday & Short-Term Loans (≤ PHP 10,000, tenor ≤ 4 months) – SEC Memorandum Circular 3-2022 caps interest at 0.15%/day and penalty at 0.20%/day; any restructuring must honor these limits.
Digital Signatures – Under the E-Commerce Act and DICT Circular 8-2020, a Scanned pdf + typed name + OTP confirmation by the lender suffices.
Credit Bureaus – Delay ≤ 30 days normally does not trigger a negative entry if extension is granted; request confirmation that the lender will report the account as “current” or “restructured – current.”
Insurance Proceeds – Some fintech loans bundle Credit-Life Insurance; if borrower’s incapacity is due to covered peril, file a claim instead of seeking extension.

11. Best-Practice Checklist for Borrowers

✔︎	Action
☐	Read the loan’s Disclosure Statement & Note the Notice Address.
☐	Gather documentary proof of hardship (employment, medical, calamity).
☐	Draft letter clearly stating specific date & amount you can pay.
☐	Send before delinquency date; request written acknowledgment.
☐	Keep meticulous records (screenshots, registry receipts).
☐	Escalate promptly if lender ignores or harasses.
☐	Continue partial payments if affordable—shows good faith.

12. Best-Practice Checklist for Lenders

Evaluate requests within five (5) business days (consistent with SEC CGFD service standards).
Issue an Amended Disclosure Statement reflecting new dates/charges.
Report restructuring to credit bureaus within 30 days.
Observe the Data-Privacy principle of proportionality—collect only documents necessary to validate hardship.
Collections reminder: Up to three (3) calls/texts per day, between 8 a.m.–9 p.m., no threats or public posting.

13. Frequently Asked Questions

Question	Answer
Can I send the request through the lender’s mobile app chat only?	Yes, electronic communications are valid under RA 8792, but keep screenshots. Better: duplicate by e-mail or registered mail.
Does an extension wipe out penalties already incurred?	No—unless you negotiate express waiver or lender issues a condonation letter.
Can the lender demand a processing fee for every extension?	Permissible if reasonable and previously disclosed, but negotiable.
Is notarisation required?	Not required; however, notarising your letter can help prove its authenticity in court.
What if I agree verbally over the phone?	Demand written confirmation—without it, the original contract controls.

14. Conclusion

A well-drafted payment-extension request letter is more than courtesy—it is a legal instrument that can avert default, preserve your credit standing, and demonstrate good faith if litigation arises. Philippine law balances lender rights to collect with borrower rights to fair treatment; invoking that balance through a clear, documented proposal is the borrower’s first, best defence.

Disclaimer: This article provides general information as of July 10 2025. It is not legal advice. Consult a Philippine lawyer for advice on your specific circumstances.