The rise of Financial Technology (FinTech) in the Philippines has facilitated easier access to credit through Online Lending Applications (OLAs). However, this convenience has been overshadowed by a surge in predatory practices, ranging from exorbitant interest rates to severe harassment and data privacy violations.

Under Philippine law, debt is a civil obligation, and the methods used to collect it are strictly regulated. Borrowers are protected against "shaming," threats, and the unauthorized use of their personal data.

I. Identifying Unfair Debt Collection Practices

The Securities and Exchange Commission (SEC), through Memorandum Circular No. 18 (Series of 2019), defines specific acts that constitute unfair debt collection. These include:

Threats of Violence: Using or threatening to use physical force or other criminal means to harm a person, their reputation, or their property.
Profanity and Abuse: Using obscene or profane language to insult or humiliate the borrower.
Disclosure of Information: Threatening to publicly list a borrower as a "delinquent" or "scammer," or contacting people in the borrower’s contact list without consent.
Misrepresentation: Falsely claiming to be a lawyer, a court official, or a representative of a government agency to intimidate the borrower.
Unreasonable Hours: Making collection calls or visits between 10:00 PM and 6:00 AM, unless the borrower has given express consent.

II. Data Privacy Violations (The "Contact List" Problem)

Many loan apps require access to a user’s contact list, gallery, and social media accounts as a condition for loan approval. Using this information to harass third parties (friends, family, or employers) is a direct violation of the Data Privacy Act of 2012 (Republic Act No. 10173).

The National Privacy Commission (NPC) has explicitly banned "debt-shaming," which involves contacting a borrower’s social circle to pressure them into payment. Processing personal data for the purpose of harassment is unauthorized and carries heavy criminal penalties, including imprisonment.

III. Step-by-Step Reporting Process

If you are a victim of harassment or unfair collection, it is essential to document everything.

1. Preserve Evidence

Screenshots: Capture all threatening text messages, emails, and social media posts.
Call Logs: Record the frequency and timing of calls. If possible, record the audio of the conversation (notifying the other party may be required under the Anti-Wiretapping Act, though exceptions exist for documenting crimes).
Loan Details: Keep a copy of the loan agreement, disclosure statements, and proof of payments.

2. File a Complaint with the SEC

The SEC oversees the licensing and conduct of lending and financing companies.

Process: Visit the SEC’s official website and use their online complaint portal or email the Corporate Governance and Finance Department (CGFD).
Goal: To check if the OLA is registered and to initiate administrative sanctions, which can lead to the revocation of their Certificate of Authority to Operate.

3. Report to the National Privacy Commission (NPC)

If the harasser contacted your friends or posted your information online:

Process: File a formal complaint via the NPC’s "Data Privacy Complaint" portal.
Impact: The NPC has the power to order the shutdown of apps found to be violating privacy laws.

4. Coordinate with Law Enforcement

If there are direct threats to your life or physical safety, or if the OLA is engaging in cyber-libel:

PNP Anti-Cybercrime Group (PNP-ACG): File a report for violations of the Cybercrime Prevention Act of 2012 (R.A. 10175).
NBI Cybercrime Division: Parallel reporting to the NBI can expedite the investigation of digital harassment.

IV. Legal Remedies and Protections

Law / Regulation	Key Protection
SEC MC No. 18 (2019)	Prohibits harassment, shaming, and use of threats during collection.
R.A. 10173 (Data Privacy Act)	Protects your contact list and personal info from being used as "collateral."
R.A. 10175 (Cybercrime Law)	Penalizes online libel and computer-related identity theft.
Revised Penal Code	Provides grounds for "Grave Threats" or "Unjust Vexation" charges.

V. Important Considerations for Borrowers

Cease and Desist: You have the right to demand that the collector stop calling you at work or contacting third parties.
No Prison for Debt: Under the Philippine Constitution, no person shall be imprisoned for debt. While a lender can sue you civilly to recover the money, they cannot have you jailed for the act of being unable to pay. However, issuing "bouncing checks" (BP 22) or committing "Estafa" (fraud) are separate criminal matters.
Verify Licenses: Before borrowing, always check the SEC website to see if the OLA has a valid Certificate of Authority (CA). Unlicensed apps are illegal and often the most aggressive.