Below is a comprehensive discussion on the issue of harassment by lending apps in the Philippines and the legal remedies available to borrowers. This article will cover the most relevant laws, regulatory bodies, the process of filing complaints, and practical steps for individuals experiencing harassment or unfair collection practices.

1. Overview of Lending App Harassment in the Philippines

In recent years, many Filipinos have turned to mobile or online lending apps for quick financial assistance. While these digital lending platforms can provide immediate funds, some borrowers report experiencing:

Excessive and aggressive collection tactics, including persistent phone calls, text messages, or online messages.
Shaming techniques, such as contacting a borrower’s family, friends, or employer.
Unauthorized access to contacts and other personal data, in violation of privacy laws.
Threats or intimidation from collectors to force repayment.

Such practices have drawn attention from Philippine regulators—the Securities and Exchange Commission (SEC), the National Privacy Commission (NPC), and other government agencies—to establish guidelines and protect borrowers’ rights.

2. Legal Framework and Regulatory Authorities

2.1 Securities and Exchange Commission (SEC)

Lending Company Regulation Act of 2007 (Republic Act No. 9474): This law governs the establishment and operation of lending companies. It gives the SEC oversight over lending firms, including those operating through mobile apps.
SEC Memorandum Circulars: The SEC periodically issues circulars to regulate lending and financing companies. Of particular note is:
- SEC Memorandum Circular No. 18, Series of 2019: Provides rules prohibiting unfair debt collection practices, such as using threats, obscenities, insults, or publication of names and personal information of borrowers who allegedly refuse to pay.
- SEC advisories: Remind lending companies of existing laws on data privacy and fair collection practices.

2.2 National Privacy Commission (NPC)

Data Privacy Act of 2012 (Republic Act No. 10173): Protects individual personal data from unauthorized or unlawful processing. Lending apps that access a borrower’s contact list without proper consent or use personal information for harassment may be in violation of this Act.
NPC Circulars: Outlines specific data protection requirements and complaint procedures for data subjects (i.e., borrowers).

2.3 Department of Trade and Industry (DTI)

Although not the primary regulator for lending apps, the DTI oversees fair trade practices. If the lending practices amount to unfair business or contractual practices, there could be grounds for complaints under consumer protection laws.

2.4 Other Relevant Laws

Revised Penal Code provisions on threats, libel, or unlawful use of personal information.
Cybercrime Prevention Act of 2012 (Republic Act No. 10175) for harassment conducted through digital platforms (e.g., social media, text messages, calls).

3. Common Forms of Harassment by Lending Apps

Excessive Calls and Messages
- Repeated calls, texts, or in-app notifications at all hours, sometimes even using different phone numbers to evade blocking.
Shaming and Public Disclosure
- Posting personal information on social media or chat groups, falsely labeling borrowers as “scammers” or “fraudsters.”
- Sending messages to the borrower’s contact list to embarrass or pressure the borrower.
Threatening Legal or Criminal Action
- Collectors may threaten legal suits, arrest, or criminal charges without due basis.
Unauthorized Access to Personal Contacts
- Some lending apps require access to a borrower’s phone contacts and subsequently use these contacts to pressure repayment.
Misrepresentation
- Collectors pretending to be government officials, law enforcement, or lawyers when they are not.

4. Filing a Complaint: Step-by-Step Guide

4.1 Gather Evidence

To build a strong case, document all forms of harassment and unfair practices:

Screenshots of text messages, chat conversations, or in-app notifications
Call logs, showing frequency and timing of calls
Social media posts or messages directed to friends, family, or colleagues
Any recording of verbal threats (if legally obtained)

Organize these pieces of evidence chronologically to present them clearly to the appropriate authorities.

4.2 File a Complaint with the Securities and Exchange Commission (SEC)

Check if the lending company is registered with the SEC.
- If it is not registered, this information strengthens the complaint about illegal operations.
- You can verify registration on the SEC website or by contacting their office.
Prepare a Formal Written Complaint
- Include your personal details, the lending app’s name, and a summary of the harassment.
- Attach all documented evidence, including screenshots, call logs, etc.
Submit the Complaint
- You can file your complaint in person at the SEC main office or regional offices.
- Alternatively, you may send it via email if the SEC provides an official channel for e-filings.
- Keep copies of your complaint and acknowledgment receipts.
Follow Up
- The SEC will typically issue a docket number or reference for your case.
- Inquire regularly about the status of the investigation.

4.3 File a Complaint with the National Privacy Commission (NPC)

If the lending app misused or illegally accessed your personal data (e.g., contacts, photos, or other sensitive information) without your valid consent, you can file a complaint with the NPC:

Draft a Privacy Violation Complaint
- Describe how the lending app accessed or processed your personal data.
- Explain the harm or potential harm this caused (e.g., reputation damage, emotional distress).
Attach Evidence
- Provide screenshots or documentation showing unauthorized access to your data or communication containing personal information.
Submit to the NPC
- Complaints can be filed online through the NPC’s official website or in person at their office.
- Once accepted, the NPC will evaluate your complaint and may launch an investigation.

4.4 Consider Filing a Criminal or Civil Case

Criminal Complaints
- If the harassment constitutes a criminal offense (e.g., grave threats, libel, or cyber harassment), you can file a complaint at your local Prosecutor’s Office or with the Philippine National Police (PNP).
- Include all evidence of threats or defamatory remarks.
Civil Complaints
- You may also consider pursuing civil remedies if you have suffered damages from the illegal collection tactics.
- Consult with a lawyer to determine the viability of a civil lawsuit against the lending company.

5. Other Avenues for Redress and Support

5.1 Barangay Protection

For less formal avenues of dispute resolution:

You can approach your barangay for mediation if the harassment is domestic or local in nature.
Barangay officials can attempt to contact the lending app representatives (if local) or at least document the harassment.

5.2 Consumer Protection Desks

Some local government units (LGUs) and government departments (like DTI) have consumer protection desks.
While these offices are more commonly used for complaints about products and services, they may provide guidance or direct you to the correct agency for financial service disputes.

5.3 Legal Assistance and NGOs

Seek help from public attorney’s offices (PAO) if you cannot afford a private lawyer.
Non-governmental organizations (NGOs) and legal aid clinics may also assist with cases of consumer harassment.

6. Practical Tips to Avoid or Mitigate Harassment

Read App Permissions Carefully
- Before installing a lending app, check the permissions it requests. If it demands unnecessary access (e.g., contacts, photos, location), reconsider or proceed with caution.
Negotiate Payment Plans
- If you are struggling to pay, some lending companies are open to restructuring or extending terms. Formalizing these arrangements can reduce aggressive collection attempts.
Block or Filter Calls and Messages
- Use your phone’s built-in blocking features for repeated harassing numbers.
- However, note that blocking alone does not fully resolve the underlying legal or financial obligations.
Protect Your Privacy
- Avoid granting access to social media contacts or phone contact lists.
- Keep personal information (e.g., address, workplace) limited to official loan agreements only.
Stay Informed
- Follow updates from the SEC and NPC regarding newly suspended or shut down lending apps.
- Check advisories and press releases to know which companies have pending complaints or ongoing investigations.

7. Potential Penalties for Violating Lending Companies

Lending apps or companies found to be violating SEC regulations, the Data Privacy Act, or other relevant laws can face:

Fines as prescribed under the Lending Company Regulation Act and related SEC circulars.
Revocation of License to operate as a lending or financing company.
Criminal Liability for directors, officers, or employees involved in harassing practices or privacy violations.
Permanent Blacklisting from future operation of lending businesses in the Philippines.

8. Conclusion

Harassment by lending apps in the Philippines is a serious issue that can lead to psychological, social, and financial harm to borrowers. Fortunately, the regulatory framework (SEC, NPC, and related agencies) provides protection and remedies for those affected. By knowing your rights, documenting evidence, and following the proper complaint procedures, you can take meaningful steps to end or reduce these unlawful practices.

If you believe you are experiencing illegal debt collection tactics or privacy violations from a lending app, do not hesitate to seek legal counsel or reach out to the appropriate government agencies for assistance. Ensuring your rights are protected is paramount, and the Philippine legal system has multiple layers of protection and recourse to safeguard individuals against abusive lending practices.

Disclaimer

This article provides general information on Philippine law related to lending app harassment. It is not intended as legal advice. For specific concerns or if you are pursuing a legal case, consult a qualified attorney or contact the relevant government agencies directly.