Reporting Harassment by Online Lending Companies in the Philippines – A 2025 Legal Guide
1 | Why the Issue Matters
Filipinos downloaded more than 400 online-lending apps (“OLAs”) between 2018-2024. Cheap credit came at a cost: borrowers report threats, doxxing, and “debt-shaming” group messages the moment a payment is late. Harassment has driven suicides and prompted hundreds of cease-and-desist orders (CDOs) from regulators.(Al Jazeera, Respicio & Co.)
2 | Governing Legal Framework
| Layer | Key Issuance | Core Rule | Typical Penalty* | Regulator |
|---|---|---|---|---|
| Primary Statutes | RA 11765 (Financial Consumer Protection Act, 2022) | Bans abusive collection and empowers regulators to impose administrative, civil and criminal sanctions | ₱50 000 – ₱2 000 000 fine and/or 2-5 yrs jail (Sec. 24 & 32) | SEC, BSP, IC, CDA(Lawphil) |
| RA 10173 (Data Privacy Act, 2012) | Outlaws unauthorized scraping or disclosure of contacts | 1-6 yrs jail; ₱500 000 – ₱5 000 000 fine (Secs. 25-33) | NPC(clym.io, Scribd) | |
| RA 9474 / RA 8556 | Lending & Financing companies must hold an SEC Certificate of Authority (CA) | ₱10 000-₱50 000 fine and/or 6 mos-10 yrs jail for operating without a CA | SEC(eLibrary, ACCRALAW) | |
| Sector-Specific Rules | SEC MC 18-2019 & MC 19-2019 (unfair debt-collection, OLA reporting) | 13 banned practices (threats, obscene language, contact-list spam, calls 6 a.m.–10 p.m.) | ₱25 000-₱1 000 000 per offense; suspension or CA revocation | SEC(Credit Info, RESPICIO & CO.) |
| SEC MC 10-2021 | Moratorium on new OLAs after spike in complaints | – | SEC(RESPICIO & CO.) | |
| NPC Circular 20-01 (2020) | Absolute ban on harvesting phone/social-media contacts for collection | NPC fines + takedown | NPC(National Privacy Commission, National Privacy Commission) | |
| BSP Circular 1169 (2022) | Mirrors RA 11765 for banks/e-money, sets 2-day complaint turn-around | ₱30 000-₱1 000 000 per breach | BSP(Bureau of Small and Medium Enterprises) | |
| Criminal Overlay | Revised Penal Code (grave threats, libel), RA 10175 (cyber-harassment) | Up to 12 yrs jail | DOJ-OOC, PNP-ACG(RESPICIO & CO.) |
* Penalties stated are statutory maxima; regulators may compound or escalate where the same conduct violates multiple laws.
3 | What Counts as “Harassment”
Prohibited acts under SEC MC 18-2019 (illustrative list):
- Using profane, obscene or insulting language
- Threatening violence, arrest, or criminal suit without lawful basis
- Publicly posting the borrower’s debt on social media or messaging co-workers/family
- Pretending to be a lawyer, police officer or court official
- Contacting anyone except the borrower/guarantor outside 6 a.m.–10 p.m. unless the account is 15 days past due
- Collecting or processing info not strictly necessary for the loan (e.g., full contact list)(Credit Info, National Privacy Commission)
NPC Circular 20-01 adds that even possessing unlawfully scraped contacts is a privacy breach, separate from the collection threat itself.(National Privacy Commission)
4 | Borrower Rights at a Glance
| Right | Source | Practical Meaning |
|---|---|---|
| Be free from unfair collection | RA 11765 §24; SEC MC 18-2019 | Lenders may remind but not harass or shame you. |
| Data privacy | RA 10173; NPC Cir. 20-01 | Contacts, photos, and sensitive data cannot be used or disclosed without your consent. |
| Transparent fees | RA 9474 §5; Truth-in-Lending Act | All finance charges must be disclosed before you accept the loan. |
| Prompt, cost-free complaint handling | BSP Circ. 1169; SEC IRR of RA 11765 (MC 5-2023) | Firms must respond within 2 business days and resolve within 15-30. |
| Access to alternative dispute resolution (ADR) | RA 11765 §18 | Regulator-facilitated mediation is available before court action. |
5 | How—and Where—to Report
| Forum | When to Choose | What to File | Where / How | |
|---|---|---|---|---|
| Securities and Exchange Commission (CGFD) | • Any OLA or lending/financing company (whether licensed or not) • Unfair collection, hidden charges, operating without CA |
Complaint-Affidavit (narrative + evidence) | Email cgfd@sec.gov.ph, file online at eFAST, or in person at SEC Main, Mandaluyong | (RESPICIO & CO.) |
| National Privacy Commission (NPC) | Contact scraping, public debt-shaming, unauthorized disclosure | Notarized Complaint Form + screenshots, call logs | Email complaints@privacy.gov.ph or deliver to NPC office, Quezon City | (National Privacy Commission, Credit Info) |
| Bangko Sentral ng Pilipinas (BSP) | Bank- or EMI-issued “salary-loan” apps, e-wallet lenders | Written complaint (no notarization) | consumeraffairs@bsp.gov.ph | (Bureau of Small and Medium Enterprises) |
| Law Enforcement | Death threats, identity theft, deep-fake nudes, extortion | Criminal complaint + evidence | PNP-ACG (acg@pnp.gov.ph) or NBI-CCD (nbiccd@nbi.gov.ph) | (Credit Info) |
| Courts (Civil / Small Claims) | Moral/exemplary damages, refund of usurious interest | Statement of Claim (≤ ₱200 000 = Small Claims) | Metropolitan/municipal trial courts nationwide | Civil Code Arts. 19-21 |
Evidence checklist:
- Screenshots (show time-stamp & sender)
- Call recordings (if legally obtained)
- Payment receipts & promissory notes
- Phone-permission logs (Android 13 “App Permissions” screen)
6 | Possible Outcomes
- Administrative: SEC may fine up to ₱1 M per count, suspend the collection agent for 60 days, or revoke the CA. The NPC may order takedown of the app, plus privacy fines up to ₱5 M.(RESPICIO & CO., Credit Info)
- Criminal: Courts may impose imprisonment under RA 11765 (2-5 yrs) or RA 10173 (1-6 yrs) in addition to fines.(Lawphil, Scribd)
- Civil: Borrowers can recover actual damages (e.g., lost job), moral damages for humiliation, and exemplary damages to deter future misconduct.
7 | Enforcement Track-Record (2019 - 2025)
- > 70 SEC CDOs issued against rogue OLAs by end-2024; six platforms halted on 26 June 2024 alone.(Respicio & Co.)
- 2025: SEC canceled Surity Cash’s license for “disrespectful” SMS threats.(Inquirer Business)
- NPC Takedowns: JuanHand, PesoPop, CashJeep & Lemon Loan ordered offline in 2021.(National Privacy Commission)
- Criminal Case Example: May 13 2025 – PNP-ACG arrested a collector in Cubao for cyber-harassment using explicit photos.(Facebook)
8 | Borrower Survival Tips
- Verify registration – Check the SEC’s List of Registered OLAs before installing.
- Deny unnecessary permissions – Contacts, photos, location are never required to compute a loan.
- Pay on the app, not via “collector’s” GCash – fake collector scams are rampant.
- Document early – Keep a harassment diary; regulators value chronology.
- Use Android/iOS “Block & Report Spam” – Screenshots still log the message.
9 | Emerging Trends
- SEC MC 5-2023 (IRR of RA 11765) now makes corporate officers personally liable for abusive collection.(SyCipLaw Resource Center)
- Open Finance Framework (BSP 2024) may enable safe “permission-based” credit-scoring without scraping contact lists.
- Draft Digital Lending Guidelines (SEC discussion paper, 2025) propose real-time audit access to back-end servers and mandatory whistle-blower channels inside OLAs.
10 | Take-Away
Harassment by online lenders is no longer a legal grey area in the Philippines. Between RA 11765, the Data Privacy Act, and a suite of SEC and NPC circulars, borrowers possess enforceable rights and regulators wield real penalties—including jail time. The law, however, remains complaints-driven: your evidence and timely reporting are the catalysts that shut abusive apps down.
This article is for informational purposes only and should not be taken as individualized legal advice. If you are facing imminent threats or harassment, consult a Philippine lawyer or contact the PNP-ACG hotline (+63 2 8723-0401) immediately.