A Debt Is Not a License to Harass: What Filipinos Can Do Against Online Lending App Harassment
In these trying times, a growing number of Filipinos have turned to short-term loans from online lending applications (OLAs). The proliferation of these easily downloadable apps has made quick cash more accessible than ever. However, this convenience has come at a cost: many borrowers have been subjected to exorbitant interest charges, incessant harassment, and even death threats directed not only at the borrower but also at individuals listed in the borrower’s contacts. Some borrowers have also experienced the misuse of their personal data for debt collection and public shaming.
Filipinos are protected by several laws and regulations against the abusive practices of OLAs. These safeguards address unfair lending terms, abusive collection methods, and the unlawful use of personal data.
The Lending Company Regulation Act (Republic Act No. 9474) and the Truth in Lending Act (Republic Act No. 3765), which generally require lending companies to comply with registration and disclosure requirements, including the disclosure of the cost of credit.
The Data Privacy Act of 2012 (Republic Act No. 10173), which regulates the processing of personal data and may apply to the unauthorized collection, use, or disclosure of borrowers’ personal information.
National Privacy Commission (NPC) Circular No. 20-01, which expressly prohibits online lending applications from accessing contact details—such as phone or e-mail lists—or harvesting, copying, or saving contacts for debt collection or harassment. The Circular also requires OLAs to provide a separate interface through which borrowers may voluntarily provide character references or co-makers of their own choosing.
Republic Act No. 10870, or the Philippine Credit Card Industry Regulation Law, which prohibits harassment, abuse, oppression, and unfair practices in the collection of credit card debt. Although this law specifically addresses credit card transactions, it reflects the statutory policy that debt collection must be carried out in good faith, with reasonable conduct and proper decorum.
Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act, which prohibits financial service providers from employing abusive collection or debt recovery practices. It also requires financial service providers to respect client privacy and protect client data.
The Cybercrime Prevention Act of 2012 (Republic Act No. 10175), which may apply to certain unlawful acts committed through information and communications technology, depending on the specific facts and evidence.
The Revised Penal Code, which penalizes offenses such as grave threats, light threats, and unjust vexation, depending on the content and circumstances of the communications.
Here is a list of steps you can take if an OLA continues to harass you, together with practical tips to help protect your rights.
1. Document EVERYTHING.
Take screenshots of threatening messages and save any posts or links where you were shamed and/or harassed.
Keep a record of the collector’s numbers and call logs.
If the collectors contacted the character references you provided in your loan application, ask them for screenshots or copies of those messages.
2. Make sure that the lender is registered with the SEC.
Verify the lender to see if it registered and authorized by the SEC to operate as a lending company. You can check it via this website - https://www.checkwithsec.site/.
3. Report threats and online defamation to cybercrime authorities.
File a complaint via the following government agencies:
National Privacy Commission (NPC) via complaints@privacy.gov.ph;
Cybercrime Investigation and Coordinating Center - https://cicc.gov.ph/complaintform/
National Bureau of Investigation Cybercrime Division – contact (02) 8523-8231 to 38 (loc 3455) or email via ccd@nbi.gov.ph
4. Consider filing a criminal case.
Gather your evidence and file a complaint-affidavit with the Office of the City or Provincial Prosecutor. If you cannot afford a lawyer, you may seek help from the Public Attorney’s Office (PAO) or the legal aid arm of your local Integrated Bar of the Philippines (IBP) chapter.
5. Protect yourself in the meantime.
Revoke the OLA’s permissions to your phone (contacts and photos) and change your passwords immediately.
A Word of Caution
While these steps can help ease the stress and anxiety caused by abusive OLAs, a loan is still a loan, and borrowers remain accountable for it. Harassment is illegal, but it does not erase a valid debt. If you are struggling, communicate in writing with the OLA immediately and ask if they can provide for a restructured payment plan. Borrow only from SEC-registered lenders, read the terms carefully and pay on time and in full to avoid falling into a cycle of debt and harassment.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to provide accurate and up-to-date information, this article may not reflect the most current legal developments or interpretations. Readers are encouraged to consult with a legal counsel for advice regarding their specific legal issues or concerns. The authors and publishers of this article disclaim any liability for actions taken or not taken based on the content of this article.
