Your Rights Against Harassment by Buy Now Pay Later and Online Debt Collectors in the Philippines

The explosive growth of Buy Now Pay Later (BNPL) platforms — GCash GGives, Maya Easy Credit, Billease, Atome, Cashalo (now part of Salmon), TendoPay, Home Credit online, UnaCash, and dozens of others — has made credit instantly accessible to millions of Filipinos. With that convenience has come an equally explosive rise in aggressive, humiliating, and often outright illegal debt collection tactics. Threatening messages at 2 a.m., posting your photo on Facebook with captions calling you “scammer” or “walang bayad,” contacting your employer, relatives, barangay captain, or even your child’s school, fake “summons,” threats of imprisonment, obscene language, and endless spam calls — these are not just “part of borrowing money.” They are illegal.

This article explains every protection the law gives you, the exact acts that are prohibited, the agencies that can punish collectors, and the practical steps you can take to stop harassment immediately and even recover damages.

1. Constitutional and Civil Law Protections That Apply to Every Debt Collector

Even before specific regulations, the following fundamental rights already make most aggressive collection tactics illegal:

• Article III, Section 3 of the 1987 Constitution – Right to privacy of communication and correspondence.
• Article 26 of the Civil Code – Every person must respect the dignity, personality, privacy, and peace of mind of others. Acts such as prying into privacy, humiliating another, or intruding into one’s peace of mind are actionable.
• Article 19 – Abuse of right principle: Even if a creditor has a legal right to collect, he must exercise it in good faith and without causing unnecessary harm.
• Article 20 – Liability for acts contrary to law.
• Article 21 – Liability for acts contrary to morals, good customs, or public policy.
• Article 32(8) & (9) – Direct civil action for violation of right to privacy and freedom from arbitrary interference.
• Article III, Section 20 of the Constitution – No imprisonment for non-payment of debt or poll tax (so threats of “ikukulong ka namin” for ordinary loans are pure intimidation).

These provisions allow you to file a civil case for damages (moral, exemplary, attorney’s fees) even without a criminal conviction.

2. Republic Act No. 10173 (Data Privacy Act of 2012)

Almost every harassment tactic used by online collectors violates the DPA:

• Contacting your relatives, friends, employer, or posting your data online without your consent = illegal processing of personal information.
• Sending your photo, ID, or loan details to third parties = illegal disclosure.
• Using your data for shaming = processing for a purpose not compatible with the original purpose (credit extension).

Penalties:

• Administrative fines by the National Privacy Commission (NPC) now reach up to ₱5,000,000 per violation (NPC Circular 2022-04).
• Criminal penalties: imprisonment of up to 6 years and fines up to ₱4,000,000.
• Civil damages (you can sue separately).

The NPC has already fined numerous lending and collection companies ₱1–₱4 million each for shaming tactics in the last three years.

3. SEC Memorandum Circular No. 18, series of 2019

Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies

This is the single most important regulation for most BNPL and online lenders (Billease, Cashalo/Salmon, UnaCash, TendoPay, Finbro, Digido, Kviku, MoneyCat, etc.). The circular explicitly prohibits the following acts by the lender or its third-party collection agency:

1. Use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person.
2. Use of obscenities, insults, profane or abusive language which amount to a criminal act or offense under applicable laws.
3. Disclosure of the names of customers who allegedly refuse to pay debts (except as allowed under the Credit Information System Act).
   → This directly prohibits the infamous “shaming posts” on Facebook.
4. Threat to take any action that cannot legally be taken (e.g., “ikukulong ka namin,” “kukumpiska namin bahay mo,” fake summons).
5. Communicating or threatening to communicate false credit information.
6. Use of false representation or deceptive means to collect any debt (e.g., pretending to be a lawyer, NBI, police, or court sheriff).
7. Making false claims of being affiliated with government.

Violations are punishable by SEC fines of up to ₱1,000,000 and possible revocation of the company’s Certificate of Authority to operate as a lending or financing company.

4. BSP Circular No. 1133, series of 2021 (for banks and BSP-supervised entities)

Applies to GCash GGives, Maya Easy Credit, CIMB, SeaBank, Gotyme, and other bank-partnered BNPL:

• Prohibits the same unfair practices as SEC MC 18-2019.
• Additional rule: collectors may only contact the borrower from 7:00 a.m. to 7:00 p.m. unless the borrower agrees otherwise in writing.
• Repeated calls intended to annoy or harass are prohibited.

BSP can impose fines up to ₱1,000,000 per day of violation and can revoke banking licenses.

5. Common Illegal Tactics and the Exact Law They Violate

Tactic	Violated Law/Regulation	Possible Penalty
Calling/texting before 7 a.m. or after 7 p.m. (BSP) or unreasonable hours (SEC)	BSP Circular 1133 / SEC MC 18-2019	Up to ₱1M fine per day (BSP)
Calling your employer or relatives to shame you	Data Privacy Act + SEC MC 18-2019 Item 3	NPC fine up to ₱5M + criminal case
Posting your photo/ID on Facebook with “scammer” caption	Data Privacy Act + SEC MC 18-2019 Item 3 + Revised Penal Code Art. 353 (libel)	NPC fine + criminal imprisonment + damages
Threatening imprisonment for non-payment	Article III Sec. 20 Constitution + SEC MC 18-2019 Item 4	Criminal case for grave threats or oral defamation
Sending fake summons or “warrant of arrest”	Estafa through false pretenses (RPC Art. 315) + SEC MC 18-2019 Item 4 & 6	Imprisonment up to 20 years
Using obscene/profane language (“putangina mo bayaran mo”)	SEC MC 18-2019 Item 2 + RPC Art. 287 (unjust vexation)	Fine or imprisonment
Visiting your house with several men to intimidate	Grave coercion (RPC Art. 286) or unjust vexation	Criminal case

6. What You Can Do Immediately When Harassment Starts

1. Send a written cease-and-desist / dispute letter (via email or registered mail).
   Sample opening line:
   “Pursuant to the Data Privacy Act and SEC Memorandum Circular No. 18 s. 2019, I am formally disputing the alleged debt and directing you to cease all communication except through written means to my lawyer/email.”

2. Block the numbers and report spam (Globe, Smart, DITO have spam reporting).

3. Take screenshots of every message, call log, Facebook post — these are your evidence.

4. File complaints simultaneously (you can file in all agencies at once):

   a. SEC – eSPARC online portal (https://esparc.sec.gov.ph)
   → Fastest; SEC can issue Cease & Desist Order within days and fine the company.
   b. BSP Consumer Protection – email consumeraffairs@bsp.gov.ph or online form
   c. National Privacy Commission – www.privacy.gov.ph complaint form
   → NPC complaints are resolved in 3–6 months and almost always result in fines.
   d. Barangay – for mediation (required before small claims or criminal case).
   e. Fiscal’s Office / Police – for criminal complaints (grave threats, unjust vexation, libel, estafa).
   f. Small Claims Court – sue for moral damages up to ₱1,000,000 (no lawyer needed, ₱5,000–₱10,000 filing fee).

Many victims who filed simultaneous SEC + NPC complaints have seen collection stop within 1–2 weeks and the company ordered to delete all their data.

7. Special Notes on BNPL-Specific Features

• Late fees and interest rates must be disclosed upfront (Truth in Lending Act – RA 3765). Hidden charges are illegal.
• BNPL providers cannot automatically deduct from your salary or bank account unless you signed a specific authority. Unauthorized deductions can be reversed by your bank.
• If the merchant (e.g., Shopee, Lazada) is the one extending the BNPL, the Consumer Act (RA 7394) also applies, and you can file with DTI.

8. Proven Cases (Public Record)

• 2022–2024: NPC fined 12 online lending companies ₱1–₱4 million each for shaming tactics.
• SEC revoked the certificates of authority of several notorious lenders (e.g., FastPeso, QuickPera) for persistent unfair collection practices.
• Multiple collectors have been arrested for grave threats after threatening to rape or kill borrowers who defaulted.

Conclusion

You do not lose your dignity when you borrow money. The law in the Philippines now has teeth — the SEC, BSP, and NPC are actively penalizing abusive collectors, and courts are awarding damages ranging from ₱50,000 to ₱500,000 in successful cases.

Save every piece of evidence, file complaints immediately and in multiple agencies, and do not pay a single peso out of fear or shame. The law is on your side, and it is being enforced more strongly than ever before.