Harassment After Full Payment of an Online Loan in the Philippines
Your legal rights, the lender’s duties, and the remedies available in 2025
Executive summary
Once a loan is fully paid the obligation is legally extinguished (Civil Code, Art. 1231). Any further attempt to collect, threaten, shame, or intimidate you is illegal. It may expose the lender, its officers, and its third-party collectors to administrative sanctions, civil damages, and even criminal liability. Below is a complete guide to the governing statutes, the kinds of abusive conduct most commonly seen in the Philippines, and the concrete steps you can take when harassment continues after settlement.
I. The rise of online lending and its abuses
- Online lending applications (OLAs) multiplied after 2016; many operate as lending companies (RA 9474) or financing companies (RA 8556) under Securities and Exchange Commission (SEC) supervision.
- Abuses typically involve:
- “Bombing” the borrower’s phone with calls/SMS even after payment.
- Accessing the borrower’s contact list, then shaming or threatening friends (“contact-spamming”).
- Posting the borrower’s photo on social media with labels such as “scammer” or “wanted”.
- Threats of arrest, salary garnishment, or criminal cases despite the settled balance.
II. When is a loan considered fully paid?
| Legal basis | Key rule | Practical tip |
|---|---|---|
| Civil Code Art. 1232 & Art. 1249 | Payment must be in legal tender or by any means accepted by the creditor (e-wallet, bank transfer, etc.). | Keep e-receipts, screenshots, or official emails confirming acceptance. |
| BSP Memorandum M-2017-042 (for EMI/e-money) | An electronic proof of credit to the lender’s account is valid evidence of payment. | Download the transaction history immediately. |
| SEC MC 19-2019 | Lenders must issue an acknowledgment of full settlement within five business days. | If none is issued, send a follow-up demand in writing. |
Tip: Ask customer support to tag the account as “closed” and request written confirmation.
III. Regulatory framework that bans post-payment harassment
1. SEC rules (for lending & financing companies)
| Circular | Salient prohibitions |
|---|---|
| MC 18-2019 – Prohibition on unfair collection | No public shaming, profane language, threats of violence, or contacting persons other than the borrower or guarantor except once to obtain updated details. |
| MC 19-2019 – Registration & OLA conduct | Requires privacy-by-design; bans scraping phone contacts; imposes up to ₱1 million fine or revocation of the Certificate of Authority. |
| MC 10-2021 – Expanded Contact Center rules | Collectors must state their real names, the legal basis of the debt, and respect a borrower’s written demand to cease communications once the debt is extinguished. |
2. Bangko Sentral ng Pilipinas (BSP) & the Financial Products and Services Consumer Protection Act (RA 11765, 2022)
- Covers banks, e-money issuers, and their outsourced collection agencies.
- Grants BSP power to award restitution to victims and to suspend erring officers.
- Creates a private right of action for double the amount of actual damages plus attorney’s fees (Sec. 47).
3. Data Privacy Act of 2012 (RA 10173)
- Harvesting and disclosing your contact list without consent is “unauthorized processing” (Sec. 25) punishable by up to ₱5 million and/or imprisonment.
- Using that data to shame you violates “malicious disclosure” (Sec. 31).
4. Cybercrime Prevention Act (RA 10175)
- Posting defamatory content online = cyber libel (Art. 353 Revised Penal Code in relation to Sec. 4(c)(4) RA 10175).
- Hacking your phone or account to extract contacts = illegal access (Sec. 4(a)(1)).
- Penalties are one degree higher than their offline counterparts.
5. Revised Penal Code provisions (still commonly used)
| Offense | Article | Penalty (prisión correccional unless noted) |
|---|---|---|
| Grave threats | Art. 282 | 6 months & 1 day – 6 years, or higher if money is demanded. |
| Unjust vexation | Art. 287 | Arresto menor or fine up to ₱5,000. |
| Slander (oral defamation) | Art. 358 | Up to 6 months or fine; cyber version uses higher penalty. |
| Extortion / blackmail | Art. 294 & 356 | Up to reclusion temporal if robbery with violence. |
6. Other special laws that may apply
- RA 9995 (Anti-Photo and Video Voyeurism) when collectors threaten to publish intimate images.
- RA 11313 (Safe Spaces Act) for gender-based online harassment.
- RA 11934 (SIM Registration Act, 2022) lets law enforcement trace or block the harasser’s number on request.
IV. Liability of the lender and its agents
| Type of liability | Who may be sued | Remedies / penalties |
|---|---|---|
| Administrative (SEC / BSP / NPC) | Lending company, financing company, directors, compliance officers, DPO, collection agency. | Fines (₱50k – ₱1 M per violation), suspension, revocation of license, public naming. |
| Civil | Company + responsible officers; under Arts. 19-21, 26, 32 Civil Code. | Actual, moral, exemplary damages; attorney’s fees; injunction to stop harassment. |
| Criminal | Collecting agent, team leader, corporate officers who ordered or tolerated the act. | Imprisonment & fines per RA 10173, RA 10175, Revised Penal Code, plus accessory penalties (e.g., deportation for aliens). |
Piercing the corporate veil: Courts may hold individual directors personally liable if they knowingly allowed illegal collection practices (G.R. No. 211203, April 18 2023).
V. What should a fully-paid borrower do when harassment starts?
Secure evidence
- Screenshots of chats, call logs, audio recordings (allowed under Rules on Electronic Evidence).
- Proof of full payment (receipts, bank confirmations).
- Any email or in-app statements showing a zero balance.
Send a formal Cease-and-Desist letter
- Cite Arts. 1231–1233 Civil Code, SEC MC 18-2019, RA 10173.
- Demand deletion of your personal data and cessation of all contact within 72 hours.
File the appropriate complaints
Forum How to file Outcome SEC Corporate Governance and Finance Department Online form / email cgfd@sec.gov.ph Investigation, show-cause order, fines. National Privacy Commission Online complaint portal within 15 days of last harassment Compliance order, ₱5 M fine per act. PNP-ACG or NBI-CCAD Sworn statement + evidence Criminal case for cyber libel / threats. Barangay / MTC If threats are minor (≤ ₱20k damages) Katarungang Pambarangay mediation or small-claims suit. Civil courts (RTC) For damages > ₱400k Injunction + damages; may issue TRO within 72 hours. Request number blocking & tracing under RA 11934.
- File an affidavit with the telco’s SIM registration compliance office; attach police blotter.
Report to app stores
- Google Play and Apple App Store accept reports on “harassment” and “data misuse”; repeated violations lead to delisting.
Check for class actions
- Financial Consumer Protection Act (Sec. 46) allows representative suits by at least five consumers or an accredited group.
VI. Frequently asked questions
| Question | Short answer |
|---|---|
| Do I owe any “processing” or “closure” fee after paying the principal and agreed interest? | No. Under quantum meruit, any fee not stated in the disclosure statement (RA 3765) is void. |
| Can the lender contact my employer or Facebook friends? | Only once, to obtain updated contact info; anything more is unfair collection (SEC MC 18-2019). |
| The collector says I can be jailed for estafa—even if I paid. Is that true? | False. Estafa (Art. 315 RPC) requires deceit and damage. Payment eliminates damage; there can be no conviction. |
| Is there a deadline to sue? | Yes—1 year for NPC privacy complaints; 4 years for civil actions based on quasi-delict; 6 years for money damage suits under Art. 1145; cybercrimes: 12 years (Sec. 8 RA 10175). |
VII. Practical checklist for borrowers
- Before paying, insist on written computation of “full and final” amount.
- Screenshot everything—apps may lock you out once they receive payment.
- After paying, immediately:
- Ask for a Certificate of Full Payment;
- Revoke app permissions to your contacts, camera, storage;
- Change passwords and enable 2-factor authentication.
- If harassment begins, act within 24 hours—quick action often stops collectors who bank on fear.
- Keep calm; never issue threats back (it can be used against you).
VIII. Conclusion
The moment a Philippine loan is fully paid, any remaining “collection” effort is groundless. The law—from the Civil Code to the Financial Consumer Protection Act—favors the consumer and imposes serious liabilities on lenders and their agents who harass, shame, or threaten. Preserve proof, assert your rights promptly, and use the administrative, civil, and criminal remedies outlined above. Justice in online-lending harassment cases is not only possible; with the robust 2023-2025 rules, it is increasingly swift.
Key Philippine references
Civil Code Arts. 1231-1252; RA 9474; RA 8556; SEC MC 18-2019, 19-2019, 10-2021; RA 10173; RA 10175; RA 11765; RA 11934; RA 9995; RA 11313; Revised Penal Code Arts. 282, 287, 353-358; BSP Memorandum M-2017-042; A.M. No. 01-7-01-SC (Rules on Electronic Evidence).