I. Overview

Online lending apps (OLAs) have made credit more accessible in the Philippines, especially to those without formal banking history. But alongside convenience, many borrowers have experienced:

Threatening text messages and calls
“Debt shaming” through mass messages to friends, co-workers, or family
Public posts on social media revealing personal and financial information
False threats of arrest or imprisonment

This article explains, in Philippine context, what is legal and illegal in debt collection, what laws apply, and how to report harassment and threats from online lending apps.

This is general legal information, not a substitute for advice from a lawyer handling your specific case.

II. Legal and Regulatory Framework for Online Lending

In the Philippines, different regulators handle different types of lenders:

Banks and Non-Bank Financial Institutions (NBFIs)
- Regulated by the Bangko Sentral ng Pilipinas (BSP).
- Subject to consumer protection regulations and the Financial Products and Services Consumer Protection Act (RA 11765).
Lending and Financing Companies (including many online lending apps)
- Must be registered with the Securities and Exchange Commission (SEC) as lending or financing companies.
- SEC issues rules on unfair debt collection practices and can suspend or revoke licenses and impose fines.
Unregistered / illegal lenders (including some “fly-by-night” apps)
- Operate without proper SEC registration.
- Can be subject to administrative cases (for operating without registration) and even criminal cases under various laws.
Data Privacy and Cybercrime Regulators
- National Privacy Commission (NPC) – enforces the Data Privacy Act of 2012 (RA 10173).
- PNP Anti-Cybercrime Group (ACG) and NBI Cybercrime Division – enforce the Cybercrime Prevention Act of 2012 (RA 10175) and related penal laws when the harassment is done online.

III. Common Forms of Harassment and Threats by Online Lending Apps

Borrowers commonly report the following practices:

“Debt Shaming” / Public Humiliation
- Sending text messages or chats to contacts saved in the borrower’s phone, accusing the borrower of being a “scammer,” “criminal,” or “bad payer.”
- Sending mass messages to co-workers, school group chats, or barangay groups.
- Posting photos of the borrower with insulting captions on social media.
Threats of Violence or Harm
- Messages like:
  - “Pupuntahan ka namin sa bahay mo; maghanda ka.”
  - “Mag-ingat ka; alam namin kung saan ka nagtatrabaho.”
- Threats to harm family members or damage property.
False Legal Threats
- Saying that the borrower “will be arrested tomorrow” by the police without a court order.
- Claiming that non-payment of a simple loan is automatically estafa without more.
- Pretending to be from a law office, court, or government agency when they are not.
Misuse of Personal Data
- Accessing the borrower’s contacts through app permissions and using those contacts as leverage (“We will text your boss and family”).
- Disclosing the borrower’s photo, address, and debt status to third parties who are not part of the loan agreement.
Excessive, Abusive, or Obscene Communication
- Repeated calls and messages at all hours.
- Use of vulgar language, slurs, and insults.

Many of these behaviors can amount to criminal offenses, civil liability for damages, and regulatory violations.

IV. What Is Legal Debt Collection vs. Illegal Harassment?

Legitimate / generally allowed:

Sending polite reminders about due dates and outstanding amounts.
Issuing demand letters or notices of possible legal action.
Filing actual civil or criminal cases in the proper courts (e.g., collection suit, estafa/B.P. 22 cases where applicable).
Communicating with the borrower or co-borrower/guarantor using contact details given in the loan contract.

Generally abusive and may be illegal:

Contacting people in your contact list who are not co-makers/guarantors just to shame or pressure you.
Using insulting, obscene, or degrading language.
Threatening physical harm, damage to property, or harm to your reputation not related to lawful remedies.
Misrepresenting being a lawyer, police officer, sheriff, or court personnel.
Publishing your personal data (photo, home address, IDs) to third parties without lawful basis.
Enforcing “collection” by taking property or salary without court order (e.g., saying “we will garnish your salary tomorrow” without a judgment and proper process).

V. Relevant Laws and Legal Bases

1. Data Privacy Act of 2012 (RA 10173)

Key points:

Personal information (name, contact details, loan account, etc.) can only be processed if there is a lawful basis (consent, contract, legal obligation, etc.).
Borrowers must be informed of what data will be collected, how it will be used, and with whom it will be shared.
Unauthorized or malicious disclosure of personal information, especially sensitive personal information, can be penalized.
Using your contact list and sending messages to your friends and family that go beyond what was clearly and fairly disclosed may amount to unlawful processing and unauthorized disclosure.

Borrowers can file a complaint with the National Privacy Commission if their data is misused.

2. Cybercrime Prevention Act of 2012 (RA 10175)

When harassment or threats are made through ICT (information and communication technologies) such as:

SMS, messaging apps (Messenger, Viber, WhatsApp, etc.)
Emails
Social media platforms

…traditional crimes under the Revised Penal Code may become “cyber” versions, often with higher penalties, such as:

Cyber libel – defamatory statements published online.
Cyber threats or coercion – threats or coercion committed through electronic communication.
Illegal access or data interference – if they hack accounts.

The law allows law enforcement to investigate, preserve, and collect electronic evidence.

3. Revised Penal Code (RPC) – Criminal Offenses

Some common relevant offenses:

Grave Threats (Art. 282) Threatening another with the infliction of a wrong amounting to a crime (e.g., “we will kill you,” “we will burn your house”), especially when such threat is unconditional or accompanied by a demand.
Light Threats (Art. 283) Similar threats but of lesser gravity.
Grave Coercion (Art. 286) Using violence, threats, or intimidation to compel someone to do something against their will, even if it is not illegal (e.g., “pay now or we will release your nude photo,” “sign this contract or we will hurt your parents”).
Unjust Vexation (Art. 287) Harassment or acts that annoy or vex another without lawful justification; repeated, abusive messages may fall here.
Libel (Art. 353 et seq.) Public and malicious imputation of a crime, vice, or defect which tends to dishonor or discredit a person. When done online, it can be cyber libel under the Cybercrime Law.
Alarm and Scandal / Other Offenses In some cases, the manner of harassment (e.g., shouting threats in public) could trigger other offenses.

If threats or harassment are serious, borrowers may file criminal complaints with the PNP or NBI, then the case may proceed to the prosecutor and eventually the courts.

4. Civil Code – Damages and Protection of Privacy

Key provisions:

Article 19 – In exercising rights, one must act with justice, give everyone his due, and observe honesty and good faith.
Article 20 – Any person who, contrary to law, willfully or negligently causes damage to another shall indemnify the latter.
Article 21 – Any person who willfully acts contrary to morals, good customs, or public policy and causes damage shall be liable.
Article 26 – Protects privacy in life, family relations, and reputation.
Articles on moral and exemplary damages – allow recovery for mental anguish, serious anxiety, wounded feelings, social humiliation, etc.

These provisions allow you to file a civil case for damages against a lender or collection agent who has harassed or shamed you, even apart from criminal liability.

5. Financial Products and Services Consumer Protection Act (RA 11765)

This law strengthens the powers of BSP, SEC, and other regulators to:

Define and prohibit abusive collection and recovery practices.
Investigate and penalize regulated entities for misconduct towards financial consumers.
Issue binding regulations for financial service providers, including many online lenders.

This is often the basis of regulatory circulars and advisories against unfair debt collection practices by lending companies and apps.

6. Other Potentially Relevant Laws

Violence Against Women and Their Children (VAWC – RA 9262) If the abuser is a spouse, partner, or ex-partner and uses debt or threats in the context of intimate partner abuse, harassment may form part of psychological violence under this law.
Safe Spaces Act (RA 11313) Covers gender-based online sexual harassment; not directly about loans, but if harassment has a sexual or gender-based component, this may also apply.

VI. Where and How to Report: Practical Steps

When you are being harassed by an online lending app, you can pursue multiple tracks at the same time: (1) personal safety, (2) regulatory complaints, (3) criminal complaints, and (4) civil remedies.

Step 1: Protect Your Immediate Safety

If you receive credible threats of physical harm, immediately go to your barangay hall or nearest police station and have the incident recorded in the blotter.
Bring your ID and your phone showing the messages.
If you believe you are in immediate danger, prioritize leaving the threatened location and staying in a safer place.

Step 2: Preserve Evidence

Do not simply block and delete everything. Before blocking:

Screenshot the messages, including:
- Phone numbers/usernames
- Date and time
- Full content of the message (including insults and threats)
Save call logs showing repeated calls and missed calls.
Keep:
- App screenshots showing the lender’s name, logo, and terms.
- Loan agreement, disbursement records, and payment receipts.
If the harassment is via social media:
- Screenshot the posts, comments, and profiles.
- Copy URLs where possible.

Be cautious about recording voice calls. The Philippine Anti-Wiretapping Law restricts secret recording of private communications. Texts, chats, and public posts are generally safer as evidence.

Create a folder (digital or printed) containing all this evidence; it will be needed for complaints.

Step 3: Identify the Type of Entity

Check if the lender is:

A bank or official e-wallet – usually has a known brand and is under BSP.
A registered lending or financing company – details often in the app or on their website (SEC registration number).
Unregistered – no clear registration, or app has been publicly listed as unregistered/illegal by authorities.

This affects where to complain, but even if you are unsure, you can still report; agencies can coordinate.

VII. Filing Complaints with Regulators

1. Complaint to the Securities and Exchange Commission (SEC)

Use this when:

The lender is a lending or financing company, especially an online app.
You experience unfair collection practices, data misuse, or suspect they are unregistered.

Typical contents of a complaint (adapt to actual SEC forms/procedures):

Your full name and contact information.
Name of the lending app and, if known, its company name and registration number.
Detailed narration:
- When you took the loan
- Loan amount and terms
- How the harassment started
- Specific messages, calls, and acts done by collectors
Attach evidence (screenshots, loan agreement, etc.).

The SEC can:

Issue cease-and-desist orders.
Revoke or suspend licenses.
Impose fines and penalties.

Even if your individual case is small, your complaint contributes to pattern evidence for enforcement.

2. Complaint to the Bangko Sentral ng Pilipinas (BSP)

Use this if:

The entity is a bank, quasi-bank, or BSP-supervised financial institution (including certain e-money issuers and finance companies).

You may file a complaint with the BSP’s consumer assistance channels (form, hotline, email). Provide:

Your details
Name of the bank/financial institution
Description of harassment (e.g., abusive collection agent)
Evidence (screenshots, logs, etc.)

BSP can direct the institution to respond, may conduct investigation, and can penalize violations of consumer protection standards.

3. Complaint to the National Privacy Commission (NPC)

Use this when:

The app accessed your contacts and used them to send shame messages.
Your data was disclosed to third parties without valid basis or beyond what was fairly disclosed.
The lender failed to secure your personal data leading to misuse.

NPC complaints generally require:

A sworn complaint stating the facts.
Attachments: screenshots of the messages sent to your contacts, privacy notice of the app (if available), loan contract, and any communications with the company.

NPC can:

Order the entity to stop unlawful processing, delete data, or notify affected persons.
Impose administrative fines and other sanctions.

4. Criminal Complaints – PNP / NBI

For threats, libel, coercion, or cybercrimes, you can:

Approach the PNP Anti-Cybercrime Group or NBI Cybercrime Division (or your local police if specialized units are not easily reachable).
Prepare:
- Your ID
- A sworn statement narrating the events
- The digital evidence (screenshots, printouts, USB copy if needed)

Possible charges include:

Grave threats / light threats
Grave coercion
Libel / cyber libel
Unjust vexation
Relevant cybercrime provisions (when electronic means are used)

The complaint may be evaluated and, if sufficient, referred to the prosecutor’s office for inquest or preliminary investigation.

VIII. Barangay and Local Remedies

Even if you intend to pursue formal cases, it is often useful to:

File a barangay blotter
- This creates an official record of the harassment.
- Attach or show the messages.
Barangay mediation (if appropriate and if the harassment is coming from a person or office within the barangay).
- Note: For corporate lenders located elsewhere, barangay jurisdiction may be limited, but a blotter is still valuable evidence.

IX. Civil Action for Damages

If the harassment caused you:

Severe emotional distress
Social humiliation, damage to reputation
Loss of income (e.g., you were fired after they harassed your employer)

…you may file a civil case for damages based on the Civil Code (Articles 19, 20, 21, 26, etc.).

You may claim:

Actual damages – e.g., cost of psychotherapy, lost wages.
Moral damages – for mental anguish, wounded feelings, serious anxiety.
Exemplary damages – to punish and set an example, if the conduct was wanton, fraudulent, or oppressive.
Attorney’s fees and litigation expenses.

This is usually done with the assistance of a lawyer, as it involves formal pleadings and court proceedings.

X. Sample Structure of a Sworn Complaint / Affidavit (General Template)

(This is an illustrative structure; actual forms and wording should be adapted to the specific agency or court.)

Title – “Affidavit-Complaint”
Affiant’s Personal Information – name, age, civil status, address.
Narration of Facts
- When and where you downloaded the app and took the loan.
- The loan amount and terms.
- Your payment history (if any).
- Specific incidents of harassment (dates, times, nature of messages, persons contacted).
- Effects on you (embarrassment, anxiety, impact on your job/family).
Legal Basis (optional in regulatory complaints, but helpful in criminal/civil cases)
- Mention applicable provisions such as Data Privacy Act, relevant RPC articles, etc.
Prayer / Relief Sought
- For regulatory complaints: investigation, sanctions, order to cease harassment, deletion of misused data.
- For criminal complaints: filing of appropriate criminal charges.
Attachments – List and attach screenshots, copies of messages, loan agreements, IDs.
Jurat – Sworn before a notary public or authorized officer.

XI. Key Practical Questions & Misconceptions

1. “Can I be arrested immediately for non-payment of an online loan?” Normally, no. Non-payment of a simple loan is civil in nature. Arrest generally requires:

A warrant of arrest issued by a court after proper proceedings, OR
Valid grounds for warrantless arrest (which usually do not apply simply for unpaid debt).

Criminal liability may arise only in specific situations (e.g., estafa, B.P. 22 for bouncing checks), and even then, it requires proper complaint, investigation, and court action.

2. “They said they will file estafa if I do not pay.” Filing a case is a legal right, but using threats of baseless cases with abusive language and harassment may still be unlawful. Whether estafa actually applies depends on proof of deceit or fraudulent intent, not just non-payment.

3. “They contacted my boss and co-workers.” This may violate:

The Data Privacy Act (unauthorized disclosure).
Civil Code protections on privacy and rights.
Regulatory rules on unfair collection practices.

You can include this in SEC/NPC complaints and in any civil or criminal action.

4. “I already paid, but they still harass me.” Keep proof of payment and include this in your complaints. Continuing harassment after full payment can strengthen your case.

XII. Preventive Measures for Borrowers

Check Registration Before Borrowing
- Borrow only from properly registered and well-known institutions when possible.
- Avoid apps that hide their company name, address, or SEC/BSP details.
Review App Permissions
- Be cautious with apps that demand access to contacts, gallery, location, or SMS without clear reasons.
- If possible, deny or limit permissions and do not store sensitive photos or data that can be abused.
Read Privacy Notices and Terms (at least the key parts)
- Look for clauses about data sharing, collection practices, and consequences of default.
Borrow Only What You Can Realistically Pay
- High-interest, short-term loans can snowball quickly.
- Plan repayment before taking the loan to avoid default risk.
Document Everything from the Start
- Keep e-mail confirmations, screenshots of terms, and all communications from Day 1.
- This will help you if things go wrong later.

XIII. Summary and Practical Action Plan

If you are being harassed by an online lending app in the Philippines:

Ensure safety – If there are serious threats, go to the barangay or police and record a blotter.
Collect and preserve evidence – screenshots, contracts, call logs, social media posts.
Identify the lender – bank (BSP), lending/financing company (SEC), or unknown.
File regulatory complaints –
- SEC – for unfair collection and unregistered lenders
- BSP – for banks and BSP-supervised financial institutions
- NPC – for misuse or unauthorized disclosure of personal data
Consider criminal complaints – PNP/NBI for threats, libel, coercion, cybercrimes.
Consider civil action – for damages due to humiliation, mental anguish, and other harm, with the help of a lawyer.

Knowing your rights and the legal tools available is the first step to stopping abusive practices. If the harassment is severe or complex, consult a lawyer or legal aid office so they can tailor strategies and documents to your specific situation.