Introduction

In the Philippines, debt collection practices have long been a source of consumer complaints, particularly when collectors resort to persistent, abusive, or humiliating tactics directed not only at the debtor but also at non-debtor relatives, friends, colleagues, or other contacts. Calling a debtor’s mother, sibling, or employer multiple times a day, disclosing the existence or details of the debt, sending shameful messages, or threatening public exposure constitute serious violations of several laws, including consumer protection, financial consumer protection, and data privacy statutes.

These practices are not merely unethical—they are illegal. Non-debtor relatives who receive such calls have clear legal rights and multiple avenues for reporting, seeking cessation of the harassment, obtaining damages, and even triggering administrative, civil, or criminal penalties against the creditor or collection agency.

Primary Legal Framework Governing the Practice

1. Republic Act No. 11765 – Financial Consumer Protection Act of 2022 (Effective 2022)

This is the single most important law governing debt collection practices in the financial sector.

Section 21 explicitly mandates that financial service providers and their agents must employ “reasonable and non-harassing” collection practices.
Prohibited acts include:
- Use of threats, violence, or intimidation
- Use of obscene or profane language
- Disclosure of the debt to third parties not legally entitled to the information
- Contacting third parties repeatedly for purposes other than obtaining location information
- Public shaming or humiliation
The law applies to all BSP-supervised financial institutions (banks, quasi-banks, trust entities, non-stock savings and loan associations, credit card issuers, payment system operators, and their agents).
Violations are subject to BSP administrative sanctions (fines up to ₱1,000,000 per day for continuing violations, cease-and-desist orders, suspension of lending operations) and personal liability of directors/officers.

2. Republic Act No. 10173 – Data Privacy Act of 2012 and Its Implementing Rules

Debt information is sensitive personal information. Disclosure to relatives or any third party without the data subject’s consent or legal authority constitutes unauthorized processing.

Relevant violations commonly committed by collectors:

Calling relatives and revealing that the debtor owes money
Sending messages to contacts stating “Your friend/relative is a deadbeat”
Posting on social media or sending group messages

The National Privacy Commission (NPC) has consistently ruled that:

Creditors and collectors are personal information controllers/processors
Contacting references or emergency contacts beyond initial verification is unlawful unless the debtor expressly authorized it
Even if the debtor listed the relative as a reference, repeated harassing calls or debt disclosure exceed the purpose for which consent was given

Penalties:

Administrative fines up to ₱5,000,000 per violation (NPC Circular 2022-04)
Criminal imprisonment from 1–6 years and fines ₱500,000–₱4,000,000
Civil damages (actual, moral, exemplary)

3. Bangko Sentral ng Pilipinas Circulars on Fair Debt Collection

BSP Circular No. 702 (2010), as amended by Circular No. 1133 (2022) implementing RA 11765, requires BSP-supervised institutions to adopt the Financial Consumer Protection Standards of Conduct.
Collectors must identify themselves properly, may not call before 8:00 a.m. or after 8:00 p.m., may not contact third parties except to locate the debtor, and even then must not disclose the nature of the call or the debt.
Repeated calls to non-debtors are explicitly considered abusive.

4. Republic Act No. 3765 – Truth in Lending Act and Republic Act No. 7394 – Consumer Act of the Philippines

Unconscionable collection practices may be treated as unfair or deceptive acts or practices (UDAP) under Article 50 of the Consumer Act, giving the Department of Trade and Industry (DTI) concurrent jurisdiction, especially when the creditor is not BSP-supervised.

5. Securities and Exchange Commission Regulations (For Lending and Financing Companies)

SEC Memorandum Circular No. 18, series of 2019, and subsequent advisories prohibit lending and financing companies and their collectors from:

Contacting third parties other than for location information
Using threats or public shaming
Disclosing debt details to unauthorized persons

Violations may lead to revocation of certificate of authority and fines.

6. Criminal Law Provisions (Revised Penal Code)

Persistent harassing calls may constitute:

Unjust vexation (Art. 287, RPC) – punishable by arresto menor or fine
Light threats (Art. 283) or grave threats (Art. 282) if threats of harm or exposure are made
Libel or cyber-libel (Art. 355 RPC and RA 10175) if defamatory messages are sent

Rights of Non-Debtor Relatives Receiving Harassing Calls

Right to refuse to give information about the debtor
Right to demand that the collector stop calling immediately
Right not to have the debt disclosed to them
Right to record the calls (Philippine law allows one-party consent recording)
Right to file complaints simultaneously with multiple agencies (BSP, NPC, SEC, DTI, PNP, NBI)
Right to claim moral and exemplary damages even if not the debtor

Step-by-Step Guide to Reporting and Stopping the Harassment

Step 1: Document Everything

Record all calls (use call recording apps)
Screenshot all messages, emails, social media posts
Note date, time, phone number, name of collector/agency, and exact words used
Save caller ID and any voice recordings

Step 2: Send a Formal Cease-and-Desist Letter

Send via email with read receipt and registered mail to the creditor and collection agency:

Sample text: “I am not the debtor. I am not a co-maker or guarantor. You are hereby directed to immediately cease and desist from contacting me in any manner regarding any alleged obligation of [Debtor’s Name]. Further contact will be treated as harassment and will be reported to the BSP, NPC, SEC, and appropriate law enforcement agencies.”

Step 3: File Complaints (You May File All Simultaneously)

A. Bangko Sentral ng Pilipinas (if creditor is a bank or its agent)

Online: BSP Financial Consumer Protection Portal (consumerassistance.bsp.gov.ph)
Email: consumeraffairs@bsp.gov.ph
Hotline: (02) 8708-7087
BSP resolves most valid complaints within 30–45 days and can order immediate cessation.

B. National Privacy Commission

Online complaint form: privacy.gov.ph/file-a-complaint
Submit recordings/screenshots showing disclosure of debt
NPC has been very active and routinely imposes multimillion-peso fines.

C. Securities and Exchange Commission (for financing/lending companies)

Email: epdcomplaints@sec.gov.ph or online portal
SEC can revoke the company’s authority to operate.

D. Department of Trade and Industry

Online: consumercare.dti.gov.ph
For non-financial creditors or general consumer complaints.

E. Philippine National Police Anti-Cybercrime Group (if threats or shaming online)

Report to nearest police station or ACG hotline 723-0401 loc 7491

F. Small Claims Court or Regular Civil Action

Sue for damages (moral, exemplary, attorney’s fees) under Articles 19, 20, 21, 26, 2217, and 2219 of the Civil Code
Many victims have successfully obtained ₱50,000–₱300,000 in moral damages even as non-debtors.

Notable NPC and BSP Decisions and Fines (2019–2025)

NPC fined a major bank ₱3 million in 2021 for allowing its collector to disclose debt to a debtor’s employer.
In 2023, an online lending app was fined ₱4 million for systematic third-party shaming.
BSP imposed ₱500,000–₱1,000,000 daily fines on several banks in 2024 whose agents continued calling non-debtors despite complaints.
Multiple collection agencies have been permanently banned by SEC for persistent violations.

Practical Tips for Immediate Relief

Block the numbers, but keep records first.
Inform your employer or family that any such calls are illegal and should be reported.
If the collector claims “We will keep calling until you pay your relative’s debt,” reply: “That is illegal under RA 11765 and RA 10173. I am recording this call and filing complaints.”
Join online support groups (e.g., “Debt Shaming Victims Philippines” on Facebook) for templates and moral support.

Conclusion

Non-debtor relatives are not mere collateral targets in debt collection—they are protected consumers under Philippine law. Persistent harassing calls and debt disclosure to third parties are unequivocally illegal under RA 11765, RA 10173, BSP regulations, and SEC rules. Victims who document the harassment and file complaints with BSP, NPC, and SEC almost invariably obtain cessation orders and, frequently, substantial compensation or fines against the perpetrators.

The era of tolerating abusive debt collection in the Philippines is over. The law is firmly on the side of the harassed non-debtor. Use it.