Reporting Pre-Due Date Harassment from Online Lending Apps in the Philippines

I. Introduction

In the Philippines, online lending applications have proliferated since 2018, offering instant loans with minimal requirements. While many borrowers use these platforms responsibly, a significant number of lending companies—particularly unregistered or illegally operating apps—engage in predatory collection practices that begin even before the loan due date. These “pre-due date harassment” tactics include incessant calls and messages, public shaming, threats of criminal prosecution, unauthorized disclosure of personal data to contacts, and posting of morphed or defamatory photos.

Such practices are illegal under multiple Philippine laws and regulatory issuances. Borrowers who experience pre-due date harassment have clear, enforceable remedies and multiple government agencies to which they can report.

II. Legal Framework Prohibiting Pre-Due Date Harassment

1. Republic Act No. 11765 (Financial Products and Services Consumer Protection Act of 2022)
   This is the single most important law for victims of lending app harassment.

   • Section 4 expressly prohibits “unfair, abusive, or deceptive debt collection practices.”
   • Section 15 explicitly bans collection activities before the due date except for courteous reminders sent not earlier than seven (7) days before maturity.
   • Any threat, intimidation, humiliation, or disclosure of the debt to third persons (except for legitimate address verification) is punishable by fines of ₱50,000 to ₱2,000,000 and/or imprisonment of 6 months to 7 years.

2. SEC Memorandum Circular No. 19, series of 2019 (Prohibition on Unacceptable Collection Practices)
   Applies to all SEC-registered financing and lending companies.
   Prohibited acts include:

   • Contacting the borrower or any third party more than three (3) times per week
   • Using obscene or profane language
   • Threatening criminal prosecution for non-payment of a civil debt
   • Disclosing the debt to employers, relatives, or friends (except for address confirmation with prior written consent)
   • Visiting the borrower’s residence or workplace without prior written consent
   • Posting the borrower’s name/photo on social media or “deadbeat lists”

3. Republic Act No. 10173 (Data Privacy Act of 2012)
   Most lending app harassment involves unauthorized access and disclosure of the borrower’s contacts list.

   • Collection and processing of personal data without valid consent is punishable by imprisonment of 1–6 years and fines of ₱500,000–₱4,000,000.
   • The National Privacy Commission has consistently ruled that using contacts for shaming constitutes grave violation of the DPA.

4. Republic Act No. 10175 (Cybercrime Prevention Act of 2012)

   • Cyberlibel (posting defamatory content online)
   • Online threats and intimidation
   • Computer-related identity theft (using morphed photos)

5. Revised Penal Code

   • Article 282 – Grave Threats
   • Article 287 – Light Threats and Unjust Vexation
   • Article 358 – Slander by Deed (public shaming)

6. Republic Act No. 11934 (SIM Registration Act)
   Effective 2023, all SIM cards must be registered. Threats sent via unregistered or fake SIMs constitute an additional criminal offense.

III. Common Forms of Pre-Due Date Harassment

• Calls and messages starting as early as 1–3 days after disbursement
• Messages sent to all contacts: “Your friend [Name] is a scammer and absconding”
• Posting of edited nude photos or “wanted deadbeat” posters on Facebook
• Threats: “We will file estafa/BP 22” (these are empty threats; non-payment of loan is civil, not criminal)
• Calling the borrower’s HR department or barangay captain
• Creating group chats with the borrower’s contacts to shame them

All these acts are illegal even if the borrower is late—more so when done before the due date.

IV. Step-by-Step Guide to Reporting

Step 1: Preserve Evidence (Critical)

• Screenshot every message, call log, Facebook post, morphed photo
• Record calls if possible (one-party consent is allowed in the Philippines)
• Save the app’s privacy policy and loan agreement
• Note the exact app name, company name (usually found in the app or Google Play listing), and contact numbers used

Step 2: File Complaints with Regulatory Agencies (Free and Fast)

A. Securities and Exchange Commission (SEC) – Primary regulator
Online filing: https://www.sec.gov.ph/online-submission-of-complaints/
Or email: fcpg_complaints@sec.gov.ph
Required attachments: screenshots, loan agreement, proof of harassment
SEC can immediately issue Cease & Desist Orders (CDO) and impose fines up to ₱5,000,000.
As of 2025, over 3,000 lending apps have been blocked by the NTC upon SEC request.

B. National Privacy Commission (NPC) – For data privacy violations
Online complaint portal: https://privacy.gov.ph/complaint-portal/
NPC complaints are resolved within 30–60 days and often result in multimillion-peso fines against the company and its officers.

C. Bangko Sentral ng Pilipinas (BSP) – If the lender is BSP-supervised
Email: consumeraffairs@bsp.gov.ph

D. National Telecommunications Commission (NTC) – To block the app and numbers
File through SEC or NPC; they coordinate with NTC.

Step 3: File Criminal Complaints (For Serious Cases)

A. Philippine National Police – Anti-Cybercrime Group (PNP-ACG)
File online: https://cybercrime.pnp.gov.ph
Or visit the nearest PNP-ACG office
Crimes: Cyberlibel, Unjust Vexation, Grave Threats, Violation of RA 10173

B. Barangay Blotter First (for Unjust Vexation/Threats)
Go to your barangay hall and have the incident blottered. This is required before filing in the Prosecutor’s Office for certain offenses.

C. Prosecutor’s Office / Court
File directly for Grave Threats, Cyberlibel (no need for barangay if purely online).

Step 4: Civil Action for Damages

File a civil case for moral damages, exemplary damages, and attorney’s fees under Article 19–21 of the Civil Code and RA 11765. Many victims have been awarded ₱100,000–₱500,000 in moral damages in small claims court (for claims up to ₱1,000,000, no lawyer needed).

V. Special Remedies Available in 2025

• The Department of Justice (DOJ) maintains a Task Force on Online Lending Abuse.
• The Supreme Court’s 2023 ruling in NPC vs. Cashalo Inc. (G.R. No. 258315) affirmed that unauthorized disclosure of contacts for shaming purposes violates the Data Privacy Act and warrants criminal liability of corporate officers.
• The SEC’s 2024–2025 “Oplan Lentang” has resulted in the permanent shutdown of over 5,000 illegal lending apps and the arrest of several foreign nationals operating them.

VI. Preventive Measures Before Borrowing

1. Check if the lender is SEC-registered: https://www.sec.gov.ph/lending-companies-and-financing-companies-2/
2. Never grant “Read Contacts” permission unless absolutely necessary, and revoke it immediately after loan approval.
3. Use a secondary phone number/SIM for loan applications.
4. Read reviews on Google Play and look for harassment complaints.
5. Borrow only from the 100+ legitimate apps (e.g., GCash GLoan, Maya Easy Credit, CIMB Bank, UnaCash, JuanHand, Tala, Billease, etc.).

VII. Conclusion

Pre-due date harassment by online lending apps is not only unethical—it is categorically illegal under RA 11765, the Data Privacy Act, and SEC regulations. Victims are not powerless. With proper documentation and prompt reporting to the SEC, NPC, and PNP-ACG, borrowers can stop the harassment immediately, have the app blocked nationwide, and hold the perpetrators criminally and financially liable.

No borrower deserves to be threatened or shamed for a ₱5,000 loan. Report without fear—the law is squarely on your side.