Query: Totoo po ba na may kapangyarihan ang online lending apps na kumontak sa barangay at iaccess ang contacts ko?
Legal Framework
In the Philippines, the use of online lending apps has grown significantly, leading to concerns about the extent of their powers and practices. These concerns primarily involve privacy issues and harassment, especially when it comes to accessing users' contacts and contacting local authorities like barangays.
Access to Contacts
Under the Data Privacy Act of 2012 (Republic Act No. 10173), individuals have the right to privacy and protection of their personal information. This law mandates that any entity collecting personal data must obtain the data subject's explicit consent. In the context of online lending apps, this means that these apps can only access your contacts if you have explicitly allowed them to do so by agreeing to their terms and conditions.
However, there have been numerous reports of lending apps misusing this consent. Once users grant access, some apps harvest contact information and use it for aggressive collection practices. This practice often leads to borrowers' acquaintances being contacted and informed about their debt, which can be seen as a form of public shaming and harassment.
Contacting Local Authorities
Online lending apps do not have the inherent legal power to contact local authorities such as barangay officials regarding a borrower’s debt without a lawful basis. Such actions can be considered a form of harassment and an invasion of privacy. While lenders can pursue legal remedies through the proper legal channels, involving local officials directly in debt collection is not a standard or legal practice.
The Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) oversee financial practices, including those of lending companies. The SEC has issued advisories against unfair debt collection practices, including the unauthorized disclosure of a borrower's personal data to third parties not related to the loan contract.
Borrower Protections
Borrowers are protected under several laws and regulations in the Philippines. The Data Privacy Act ensures that personal data is collected, processed, and stored lawfully. Additionally, the Lending Company Regulation Act of 2007 (Republic Act No. 9474) regulates the operation of lending companies and their practices.
If an online lending app violates these regulations, borrowers can file a complaint with the National Privacy Commission (NPC) for breaches of privacy, or with the SEC for unfair debt collection practices. The borrower can also seek legal counsel to address any harassment or privacy violations.
Conclusion
Online lending apps in the Philippines must adhere to strict privacy and fair practice regulations. They cannot legally access your contacts or contact local authorities like barangay officials without your explicit consent and a lawful basis. Borrowers experiencing harassment or privacy violations should report such incidents to the NPC or SEC for appropriate action. It is essential for users to read and understand the terms and conditions of these apps and be aware of their rights under Philippine law.