Reporting Harassment by Lending Apps in the Philippines
A comprehensive legal-practical guide (updated to August 7 2025)
1. Why This Matters
Since 2018, so-called online lending applications (OLAs) have mushroomed across the Philippines. While they promise quick cash, many have resorted to:
- incessant “reminder” calls and SMS to borrowers and their contacts
- threats of public shaming on social media (“utang ni ___, di nagbabayad!”)
- use of profane language, sexual slurs, or death threats
- unauthorized access to contact lists, photos, and location data
These practices are illegal, and a growing body of Philippine law now empowers consumers to stop them and seek redress.
2. What Counts as Harassment or Illegal Collection?
| Act by the lender | Why it is unlawful | Typical legal basis |
|---|---|---|
| Accessing your phonebook, sending bulk texts to your friends | Unauthorized Processing of Personal Data | Data Privacy Act (RA 10173) |
| Posting your debt on Facebook, TikTok, community Viber | Unjust Public Disclosure; Libel | RA 10175 (Cybercrime), Revised Penal Code Arts. 353–355 |
| Profanity, slurs, threats of arrest or bodily harm | Unfair Debt Collection; Grave Threats | SEC MC 18-2019; RPC Art. 282 |
| Repeated calls/SMS at odd hours | Unreasonable Collection Practices | Financial Consumer Protection Act (RA 11765) §33; BSP Circ. 1154-2023 |
| False “legal” notices from non-lawyers | Misrepresentation & Deceit | Art. 1391 Civil Code; RA 9484 (if billing as a credit card) |
3. Key Laws & Regulations (Philippine Context)
| Instrument | Core Provisions Relevant to OLAs |
|---|---|
| RA 10173 (2012) – Data Privacy Act | Requires lawful, proportional, and declared purpose for data processing; hefty fines (up to ₱5 M) and imprisonment for unauthorized disclosure or malicious use of personal data. |
| RA 11765 (2022) – Financial Consumer Protection Act | Classifies abusive collection as “financial consumer abuse”; empowers BSP, SEC, and Insurance Commission to issue cease-and-desist orders (CDOs), impose up to ₱2 M fine + ₱200 k per day of continuing violation. |
| SEC Memorandum Circular 18-2019 | Specific to financing & lending companies: bans threats, obscenity, contacting persons in debtor’s phone “unless names were given as guarantors”. Mandates single daily contact attempt and calls only between 8 AM–5 PM. Violation = revocation of license. |
| BSP Circular 1133-2021 & 1154-2023 | Implements RA 11765 for banks/e-money issuers; requires fair collection policies, in-app consent flow for data access, mandatory consumer assistance desk. |
| NPC Advisory Opinion 2020-031 | Declares scraping of phone contacts for debt collection “excessive and therefore unlawful”; borrowers’ consent buried in lengthy T&Cs is invalid if disproportionate. |
| RA 10175 (2012) – Cybercrime Prevention Act | Converts libel, threats, coercion, identity theft, and unlawful processing into cyber-offenses with higher penalties when committed through ICT. |
| Revised Penal Code Arts. 282, 353, 356 | Grave threats, libel, oral defamation apply even outside cyberspace. |
| Consumer Act (RA 7394) & DTI A.O. 10-24 | Catch-all on deceptive, unfair, or unconscionable sales acts; DTI may fine apps that sell credit without required permits. |
4. Which Regulator Handles What?
| Agency | Jurisdiction | How to File |
|---|---|---|
| Securities and Exchange Commission (SEC), Corporate Governance & Finance Dept. | Lending & financing companies (non-bank). | E-mail complaint & evidence to cgfd_md@sec.gov.ph or file at any SEC extension office. |
| Bangko Sentral ng Pilipinas (BSP), Consumer Assistance Mechanism (CAM) | Banks, thrift banks, EMI-banks, quasi-banks. | cam@bsp.gov.ph or online portal (https://www.bsp.gov.ph/cam). |
| National Privacy Commission (NPC) | All entities processing personal data. | complaints@privacy.gov.ph or NPC portal; requires sworn complaint. |
| Department of Trade and Industry (DTI) | Unregistered credit-granting apps as “unfair trade practice”. | 1-DTI (1-384) hotline. |
| Philippine National Police – Anti-Cybercrime Group (PNP-ACG) and National Bureau of Investigation – Cybercrime Division (NBI-CCD) | Criminal aspects (threats, cyber libel). | Walk-in or online report (PNP-ACG iReport app). |
| National Telecommunications Commission (NTC) | SIM-based spam/harassing calls. | consumer@ntc.gov.ph. |
Tip: If unsure where the app is registered, check SEC’s OLA Watchlist (sec.gov.ph/ola) or BSP’s List of Supervised Institutions.
5. Evidence You Should Gather First
- Screenshots & screen-recordings of messages, call logs, app permissions.
- Copies of the contract/loan agreement and privacy policy.
- Proof of payments (receipts, bank transfers).
- List of contacts who received harassment and their statements.
- Device forensic log (optional but strengthens NPC cases).
Keep files in original form; avoid editing timestamps.
6. Step-by-Step Reporting Flow
A. Immediate Self-Help
- Revoke permissions (Settings → Apps → Permissions → Contacts, SMS, Storage).
- Send a demand-to-cease e-mail/text citing RA 11765 and SEC MC 18-2019.
- Block numbers or route to voicemail; document every attempt.
B. Administrative Complaint
| Action | Where | Form & Fee |
|---|---|---|
| File abusive collection complaint | SEC CGFD (if lending/financing) | Free; attach affidavit & evidence. |
| File privacy violation | NPC | ₱200 filing fee (waived if indigent); notarized forms downloadable from NPC site. |
| File financial consumer abuse | BSP CAM | Online; BSP will forward to institution who must answer in 7 working days. |
Regulators often coordinate. A single set of evidence may be cross-shared when you flag this in your cover letter.
C. Criminal Case (Optional but Powerful)
- Execute affidavit of complaint before prosecutor/NBI-CCD.
- Prosecutor issues subpoena; if probable cause found, information is filed in court.
- Penalties can include imprisonment (6 months–12 years) and/or fines, plus damages in a separate civil action.
D. Civil Action for Damages
Under Art. 32 & 33 Civil Code, you may sue for:
- Moral damages for humiliation
- Exemplary damages to punish egregious acts
- Attorney’s fees
Small claims courts now allow up to ₱1 M (AM 08-8-7-SC as amended 2023) with simplified procedure.
7. What Can Happen to the App?
| Sanction | Trigger | Recent Examples |
|---|---|---|
| Revocation of license | Repeated harassment, fake addresses | 2024: FastPera, JuanHand, PesoPlus licenses revoked. |
| Cease and Desist Order (CDO) | One verified major violation | 2023: 19 OLAs slapped with CDO within 48 h of complaints. |
| Monetary Penalties | Each violation day | SEC imposed ₱1.5 M on CashGo (2022). |
| Name-and-shame listing | Published on SEC/BSP website | “Not accredited OLA list” now > 400 apps. |
| Criminal conviction | Cyber libel, threats | 2021 Pasig RTC jailed two collection agents of PondoPeso (first conviction). |
8. Practical Tips to Prevent Future Abuse
- Borrow only from registered entities – Check SEC registration certificate; look for “Authority to Operate as a Financing/Lending Company”.
- Read privacy notices; lawful processing must be “proportional and necessary.”
- Use a separate “loan phone” with no contacts if you must try an OLA.
- Pay through traceable channels (GCash, InstaPay) rather than cash-pickup couriers.
- Negotiate restructuring early—RA 11765 obliges lenders to offer “reasonable repayment arrangements” if you show good faith.
9. Template: Sworn Complaint (Excerpt)
REPUBLIC OF THE PHILIPPINES )
CITY OF _____________ ) S.S.
I, [Name], Filipino, of legal age, after having been duly sworn, depose and state:
1. That on 15 June 2025 I obtained a ₱5,000 loan from the mobile application “QuickPeso.”
2. On 30 June 2025 the respondent began sending threatening messages …
[Attach Annexes A-F: screenshots, receipts, list of harassed contacts]
PRAYER
WHEREFORE, premises considered, I respectfully pray that …
FURTHER AFFIANT SAYETH NAUGHT.
(Signature) (ID number)
SUBSCRIBED AND SWORN …10. Frequently Asked Questions
Q1: I already paid but they still harass me. Send proof of full payment and demand a “certificate of closure”. Non-issuance within 7 days is a separate violation under SEC MC 19-2019.
Q2: Can they sue me for libel if I complain publicly? True statements made in good faith to protect your rights are privileged. Stick to facts; avoid defamatory embellishments.
Q3: Will filing a complaint stop interest from running? No; but SEC or BSP may order the lender to suspend further interest while the case is pending if the charges involve unlawful interest computation.
11. Conclusion
Harassment by lending apps is neither normal nor unavoidable. Philippine law now provides a multi-layered shield—Data Privacy, Financial Consumer Protection, SEC rules, and criminal statutes—plus clear channels to enforce those rights. With proper documentation and decisive reporting, borrowers can stop abusive collectors, hold companies (and their officers) liable, and even recover damages.
Disclaimer: This material is for information only and does not constitute legal advice. For case-specific guidance, consult a Philippine lawyer of your choice.
Key References (for further reading)
- RA 10173, RA 11765, SEC MC 18-2019, BSP Circular 1154-2023, NPC Advisory Opinion 2020-031, RA 10175, Revised Penal Code Arts. 282 & 353–355, AM 08-8-7-SC (as amended).*