Reporting Scam Loan Apps Sending Harassment and Threats

A Comprehensive Legal Guide for the Philippines (updated 31 July 2025)

1. Executive Summary

Predatory “quick-cash” apps have multiplied since 2020. Many operate without a Securities and Exchange Commission (SEC) licence, mine borrowers’ contact lists, and weaponise private data to bully, shame or threaten. Philippine law already treats these acts as unfair collection, cyber-harassment, grave threats, and data-privacy violations. Victims can pursue relief simultaneously before the SEC, the National Privacy Commission (NPC), the Bangko Sentral ng Pilipinas (BSP), the National Bureau of Investigation (NBI) or Philippine National Police Anti-Cybercrime Group (PNP-ACG), and the Office of the City/Provincial Prosecutor. This article pulls together every relevant rule, procedure, penalty, and practical tip.

2. What Exactly Is a “Scam Loan App”?

Legitimate Lending App	Scam / Rogue App
Registered with SEC under R.A. 9474 (Lending Company Regulation Act) or R.A. 8556 (Financing Company Act).	Unregistered or revoked; often hidden behind shell corporations or offshore entities.
Displays licence number, corporate address, interest computation, and fees.	Uses generic names (“EasyCash”, “PeraNow”), no licence number, misleading APR, huge “processing fees”.
Collects only data reasonably necessary for credit scoring.	Forces wide-open permissions (contacts, gallery, location), then scrapes data.
Uses BSP-approved collection standards.	Sends mass texts to your contacts calling you a “scammer”, threatens arrest, publishes edited nude photos, etc.

3. Typical Harassment & Threat Techniques

Public-shaming group messages (“WARNING: [Name] is a DELINQUENT!”).
Spoofed legal notices claiming “WARRANT OF ARREST IN 24 HRS”.
Threats to harm family or post intimate images.
Fake “law office” emails demanding huge “settlement fees”.
Continuous robo-calls outside 9 AM-5 PM window.

All of these are prohibited under SEC Memorandum Circular (MC) No. 18-2019 and MC No. 21-2022 on Unfair Debt Collection.

4. Governing Laws & Regulations

Area	Key Statutes / Rules	Offence Highlights	Penalties*
Licensing & Conduct of Lending/Financing Companies	R.A. 9474, R.A. 8556, SEC MC 18-2019, SEC MC 10-2021, SEC MC 21-2022	Lending w/o licence; unfair collection (use of threats, obscene language, contact-scraping).	₱10,000 – ₱1 M fine per offence; revocation; jail ≤ 6 mos.
Financial Consumer Protection	R.A. 11765 (2022)	“Abusive collection or recovery of debt” and mis-selling of financial products.	Up to ₱2 M per transaction + 1/10 of 1 % of total loan portfolio; BSP/SEC cease-and-desist orders.
Data Privacy	R.A. 10173 + NPC Circular 16-02; Joint SEC-NPC Advisory 2024-01	Processing contact lists without consent; “doxxing” borrowers.	₱500k-₱5 M + 1-6 yrs prison; higher if sensitive data.
Cybercrime	R.A. 10175 (Cybercrime Prevention Act)	Libel, threats, identity theft, voyeurism committed through ICT.	RPC penalty ×1 degree higher.
Criminal Threats & Harassment	Revised Penal Code Arts. 282-283 (grave/light threats), 287 (unjust vexation), 359-360 (oral defamation)	Any threat to kill/injure, or repeated vexatious calls.	Arresto mayor to prision correccional + fine.
SIM Registration Compliance	R.A. 11934 (2023)	Using unregistered SIMs to threaten/harass.	SIM deactivation; ₱100k-₱1 M fine.
Anti-Photo/Video Voyeurism	R.A. 9995	“Morphed nudes” sent to extort payment.	3-7 yrs prison + ₱100k-₱500k.

*Penalties current as of July 2025; some are graduated per day of continuing violation.

5. Which Agency Handles What?

Complaint	Primary Agency	Secondary / Parallel
Unregistered app, abusive collection, fake law firm threats	SEC Corporate Governance & Finance Dept. (cgfd_md@sec.gov.ph; Online Complaint Form)	BSP (if bank-owned), DTI (misleading ads)
Data scraping, doxxing, privacy breach	National Privacy Commission (complaints@privacy.gov.ph; NPC e-Filing Portal)	SEC (if lending company)
Criminal threats, cyber-libel, extortion	PNP-ACG (Camp Crame) or NBI-CCD	Local Police/Women & Children Desk
SIM used is unregistered or spoofed	NTC telco enforcement through telco fraud desks	PNP-ACG
App still live on Google Play/App Store	Google/Apple Report Abuse Form	None (app stores often delist within 48-h)

6. How to Build a Solid Case

Preserve Evidence
- Take time-stamped screenshots (include URL or sender number).
- Record calls only after informing the caller you are recording (Anti-Wiretapping Act).
- Save the APK file or Play Store link.
Draft an Affidavit of Complaint
- Narrate events chronologically; attach annexes.
- Notarise or administer oath before a prosecutor.
File Simultaneous Complaints
- Administrative (SEC/NPC) and criminal (Prosecutor’s Office) may run in parallel.
- Civil action for damages under Art. 33 (defamation) & 32 (privacy) Civil Code is optional.
Request Interim Relief
- SEC ex-parte cease-and-desist order (CDO) against the operator.
- Court petitions for temporary restraining order (TRO) vs. further harassment.
Coordinate With Telcos
- Use telco fraud hotlines to block or trace numbers.
- Cite SIM Registration Act to compel disclosure of owner.

7. Flowchart: From Threat to Resolution

Collect Evidence → File SEC/NPC e-Complaint (within 10 days for privacy breach) 
         ↘                                 ↘
   PNP/NBI Cybercrime Intake            BSP Consumer Assistance
         ↓                                 ↘
   Prosecutor’s Office (Inquest or Regular)  → Court Trial → Conviction/Dismissal

Time-lines: NPC mediation ≈ 30 days; SEC show-cause ≈ 15 days; criminal preliminary investigation ≈ 60-90 days.

8. Possible Outcomes & Remedies

Forum	Typical Relief	Notes
SEC	Revocation of CA/LS, app takedown, fines, public name-and-shame list.	SEC’s “Operation Wasp” (2023-2025) has already delisted 110 apps.
NPC	Order to delete unlawfully collected data, stop processing, pay damages.	NPC may coordinate with BSP for joint audits.
BSP	Monetary penalties, directive to refund fees, corrective action plans.	Applies if the entity is a bank or EMI.
Criminal Court	Imprisonment and/or fine; restitution as civil liability.	Threat counts separate from privacy counts.
Civil Court	Moral, exemplary & actual damages, attorney’s fees.	Proof of degree of mental anguish raises damages.

9. Recent Policy Developments (2023-2025)

SEC-NPC Joint Memorandum Circular 1-2024 – real-time data-sharing to trace abusive collectors.
BSP Circular 1186 (2024) – expands Sec. 3130 of Manual of Regulations for Banks (MORB) on fair collection to all BSP-supervised fintech.
Senate Bill 2199 “Anti-Online Lending Harassment Act” – pending in the House; proposes 2-5 yrs prison for non-licensed debt collection using personal-data threats.
Supreme Court A.M. No. 21-03-06-SC (Rules on Cybercrime Warrants) now expressly covers remote data search and seizure of loan-app servers.

10. Practical Tips for Borrowers & Advocates

Never settle via GCash/PayPal links sent by anonymous collectors.
Check the SEC’s “List of Registered Online Lending Platforms” before downloading an app.
Use a separate contact list or virtual phone for online loans to limit data exposure.
Remind friends/family that any defamatory message they receive is also potential evidence.
Seek pro bono help: Integrated Bar of the Philippines (IBP) chapters, SALIGAN, UP Law Center Legal Aid Clinic.
Mental-health support: Dial 1553 (DOH-NCMH) if threats cause anxiety or depression.

11. Role of Counsel & NGOs

Legal counsel can:

Craft multi-forum strategy (administrative + criminal + civil).
Obtain search-warrant applications for server takedown.
Negotiate with telcos and tech platforms. NGOs and consumer groups pressure regulators to keep the public list of banned apps updated and push for faster takedowns.

12. Conclusion

The Philippine legal framework now offers robust, multi-layered protection against scam loan apps that harass and threaten. Success, however, hinges on prompt evidence preservation, coordinated reporting, and public awareness. By invoking the twin pillars of financial-consumer protection (SEC/BSP) and cyber-crime enforcement (NPC/PNP/NBI), victims can shut down rogue operators and even obtain damages. Legislators continue to refine the law, but as of July 2025 the toolkit described above is already powerful—if borrowers know how to use it.

This article is for general information only and is not a substitute for personalised legal advice. Consult competent counsel for case-specific guidance.