The pursuit of unpaid debt is a legitimate business activity, yet it is frequently marred by aggressive tactics that cross the line into harassment. In the Philippines, the legal framework is designed to balance the right of creditors to collect what is owed with the fundamental right of debtors to be treated with dignity and privacy.

1. The Core Regulation: SEC Memorandum Circular No. 18 (Series of 2019)

The most specific regulation governing debt collection for financing and lending companies is SEC Memorandum Circular No. 18. This issuance defines and prohibits "unfair debt collection practices," establishing clear boundaries for collectors.

Prohibited Acts Include:

Threats of Violence: Any use or threat of physical harm against the debtor, their reputation, or their property.
Obscene/Profane Language: Using insults or derogatory language to coerce payment.
Disclosure of Information: Threatening to publicize the debtor’s personal information or debt status to people who have no legitimate business with the account (e.g., social media shaming).
False Representation: Falsely claiming to be a lawyer, a court official, or a government agent to intimidate the debtor.
Contact at Unreasonable Hours: Contacting the debtor before 6:00 AM or after 10:00 PM, unless the debtor has given express consent.
Contacting References without Consent: Reaching out to people listed as "character references" for any purpose other than to locate the debtor.

2. The Data Privacy Act of 2012 (RA 10173)

Debt collectors often leverage personal data to pressure debtors. The Data Privacy Act (DPA) is a potent shield in this regard. Collectors are "personal information processors" and must adhere to strict principles:

Purpose Limitation: Personal data collected for a loan application cannot be used for harassment or public shaming.
Confidentiality: Sharing a debtor’s delinquency with their employer, colleagues, or friends without consent is a violation of the DPA.
Unauthorized Processing: Many "loan apps" access phone contacts and galleries without valid legal grounds. This is a criminal offense under the DPA, punishable by imprisonment and heavy fines.

3. Revised Penal Code and Special Laws

Beyond administrative regulations, certain debt collection tactics may constitute criminal acts under the Revised Penal Code (RPC):

Grave or Light Threats (Art. 282-283): Threatening to commit a crime against the debtor (e.g., "I will kill you if you don't pay") or threatening to do a wrong not constituting a crime.
Unjust Vexation (Art. 287): A "catch-all" provision for conduct that irritates, annoys, or disturbs the mind of an innocent person without justifiable motive. Persistent, harassing phone calls often fall under this.
Libel/Cyberlibel: Posting a debtor's face and "scammer" labels on social media constitutes Libel under the RPC or Cyberlibel under the Cybercrime Prevention Act of 2012 (RA 10175).
Grave Coercion (Art. 286): Preventing a person from doing something not prohibited by law, or compelling them to do something against their will (like signing a deed of sale for a property) through violence or intimidation.

4. The BSP Regulations (For Banks)

For debts involving banks and credit card companies, the Bangko Sentral ng Pilipinas (BSP) provides oversight through the Manual of Regulations for Banks (MORB).

Circular No. 454 specifically prohibits the use of "humiliating" or "degrading" scripts during collection.
Banks are ultimately responsible for the actions of the third-party collection agencies they hire.

5. Remedies for the Debtor

If a debtor is subjected to harassment, several legal avenues are available:

Action	Authority
Administrative Complaint	File with the Securities and Exchange Commission (SEC) for lending/financing companies or the BSP for banks.
Data Privacy Complaint	File with the National Privacy Commission (NPC) if personal data was misused or leaked.
Criminal Complaint	File with the Office of the Prosecutor or the Philippine National Police (PNP) Anti-Cybercrime Group for threats, libel, or coercion.
Civil Action	Sue for Damages (Articles 19, 20, and 21 of the Civil Code) based on the principle of "Abuse of Rights."

Summary Table: Rights vs. Violations

Right of the Debtor	Common Violation (Harassment)
Right to Privacy	Calling the debtor's workplace or neighbors.
Right to be free from threats	Threatening "jail time" (Note: Debt itself is not a crime under the Constitution).
Right to Dignity	Using profanity or shaming the debtor on social media.
Right to Due Process	Attempting to seize property without a court order.

Note on "No Imprisonment for Debt": Article III, Section 20 of the Philippine Constitution states: "No person shall be imprisoned for debt." While non-payment of a loan is a civil liability, "Bouncing Check" (BP 22) or Estafa (Fraud) are criminal offenses that can lead to imprisonment. Harassment often involves falsely threatening debtors with Estafa to induce fear.