Loan-App Harassment in the Philippines

Complete Guide to Your Rights & Complaint Procedures (2025 Edition)

1. Why this matters

Over 300 licensed lending/financing entities and several hundred unlicensed apps have mushroomed since 2017. Many use “collect-shame-threaten” tactics—bulk SMS blasts, Facebook defamation posts, calls to employers or relatives, doxxing, even death threats. These practices are illegal and can trigger civil, administrative, and criminal liability. This article sets out everything you need to know to protect yourself and hold offenders accountable.

2. Legal & Regulatory Framework

Instrument	Key Provisions Relevant to Harassment & Data Misuse
RA 9474 (Lending Company Regulation Act, 2007)	Lending companies must be SEC-licensed; SEC may fine ≤ ₱10 000/day and revoke licenses for “unfair collection.”
RA 8556 (Financing Company Act, 1998)	Similar rules for financing companies.
SEC Memorandum Circular 18-2019	Expressly outlaws threats, obscene language, public shaming, contacting people in debtor’s contact list without consent, and false representations.
SEC MC 19-2019	Requires lending apps to submit names, URLs, data-processing flows; mandates in-app “complaints” button and 24-hour response time.
RA 10173 (Data Privacy Act, 2012) & NPC Circular 16-01	Processing personal data must be proportionate and purpose-specific; “contact scraping” and “contact blasting” without consent = unauthorized processing §25(a).
RA 11765 (Financial Products and Services Consumer Protection Act, 2022)	Creates Financial Consumer Protection Departments (FCPD) in each regulator; empowers SEC/BSP to impose ₱10 million fine or 2× the damage, whichever is higher; introduces refund and restitution powers.
Revised Penal Code (RPC)	Arts. 287, 290 (unjust vexation/violation of privacy), Art. 282 (grave threats), Art. 355 (libel) may apply.
Cybercrime Prevention Act 2012 (RA 10175)	Online libel, threats, unauthorized access carry one degree higher penalties than RPC.
BSP Circular 1160 s.2023	Collection practices for banks/e-money issuers: forbids harassment and third-party disclosure.

Unlicensed apps are doubly liable: operating without a secondary license is itself a criminal offense (RA 9474 §12) and their harassment tactics violate multiple statutes.

3. What Counts as Harassment?

Persistent or profane calls/messages (more than twice a day outside 8 a.m.–9 p.m.)
Threats of bodily harm, imprisonment, arrest, salary garnishment without court order
Public shaming: posting debt details or edited photos on social media
Contacting your boss/HR, parents, random Facebook friends gathered from your phone
False representation (posing as “NBI Task Force,” “court sheriffs,” etc.)
Doxxing: disclosing your personal data, ID cards, selfies

All of the above violate SEC MC 18-2019, the Data Privacy Act, and often the RPC.

4. Complaint Avenues & Jurisdiction Map

Offender Type	Primary Regulator	Where to Complain	Secondary / Parallel Actions
SEC-licensed lending/financing companies & their apps	SEC Financing & Lending Division (FLD), Enforcement & Investor Protection Dept. (EIPD)	➤ Online: eFAST portal (https://complaints.sec.gov.ph) ➤ Email: fld@sec.gov.ph	NPC (data abuse) · RTC/MeTC (civil/criminal)
Unregistered / illegal apps	SEC EIPD (closure + criminal referral)	Same as above	NBI-CCD or PNP-ACG for cybercrime
Bank-affiliated apps	BSP Consumer Empowerment Group	➤ Online CMS portal ➤ consumeraffairs@bsp.gov.ph	SEC (if subsidiary is licensed)
Apps abusing contact list / photos	National Privacy Commission	➤ complaints@privacy.gov.ph or NPC portal	SEC / NBI
Threats, libel, doxxing	NBI-Cybercrime Division or PNP-Anti-Cybercrime Group	Walk-in affidavit & device turnover	Barangay blotter · Prosecutor’s Office (criminal)
Repeated calls/texts	Telco’s nuisance hotline (Globe #1488 / Smart 8888)	NTC complaint	—

You may file with several bodies simultaneously; no rule of exclusivity applies.

5. Step-by-Step Complaint Checklist

Preserve Evidence
- Screenshots of in-app messages, SMS, email, Messenger/Viber chats (include timestamps & sender IDs).
- Call logs (screen-record w/ scrolling).
- Threatening voice mails or recordings (RA 4200 allows one-party consent).
- Copies of posts tagging relatives/friends (save the direct URL).
- Loan agreement, screenshots of app permissions you granted.
Send a Demand-to-Cease Email/Snail Mail (Optional but Strategic)
- Invoke SEC MC 18-2019, Data Privacy Act §18, and Consumer Act §3.
- Demand deletion of your contact list and cessation of harassment within 3 business days.
- This shows good faith and strengthens later damages claim.
File with SEC (if lender is or might be licensed)
- Register/create ticket on eFAST → “Complaint against Lending Company.”
- Upload: affidavit, evidence folder (zipped), valid ID.
- Verification e-mail within 2 days; SEC issues Show-Cause Order to lender within 10 days.
- Mediation conference via Zoom; if no compromise, Formal Investigation.
- Final Order typically within 45–90 days. Penalties: ₱50 k–₱10 M + license revocation + app takedown.
File NPC Complaint (for data scraping/contact blasting)
- Within one year from last unlawful processing.
- Use NPC docket form + notarized verified complaint; attach SEC ticket no. if already pending.
- NPC may issue Cease and Desist Order within 72 h for continuing threats.
- Possible penalties: ₱500 k–₱5 M per act + imprisonment (court-imposed).
File Criminal Case (optional but powerful)
- Go to NBI-CCD (Quezon Ave HQ or regional offices) with evidence + sworn statement.
- They may apply for search warrant to seize servers, freeze bank accounts.
- Prosecutor files Information under RA 10175 (online libel/threats) or RPC.
- Possible sentence: up to 12 years & fine; courts may award moral/exemplary damages.
Civil Action for Damages
- RTC/MTC where you reside or where any element occurred.
- Include claims for moral damages (psychological distress), nominal damages (privacy breach), and exemplary damages (to set example).
- Average awards range ₱50 k–₱300 k; no filing fees if damage claim ≤ ₱300 k (Small Claims rules apply).
Telco & App-Store Reports
- Report malicious numbers to Globe/Smart for blacklisting.
- Google Play “Flag as inappropriate” → “Illegal content” → “Harassment.”
- Apple Report a Problem portal. Both stores comply quickly once SEC/NPC order is cited.

6. Timeline Snapshot (Typical)**

Day	Action
0	Gather evidence; send cease-and-desist email
1–3	File SEC & NPC complaints online
7–14	SEC acknowledges; issues Show-Cause; NPC preliminary conference
15–45	Mediation / clarificatory meetings (Zoom or written)
30–90	SEC/NPC decision; fines/app removal/licence revocation
45+	If criminal referral, prosecutor files case; warrant may issue
90–180	Trial dates begin (if criminal); civil case raffled

These are averages; delays occur if parties request resets or if addresses are hard to serve.

7. Possible Outcomes & Remedies

Administrative Sanctions
- Fines, suspension, or permanent revocation of lending certificate.
- Permanent ban of directors/officers from any SEC-regulated entity.
- Public disclosure by SEC; app delisted by Google/Apple within 24 h.
Data Privacy Orders
- Erasure of unlawfully-processed contacts & photos.
- Stop-Processing Order; NPC can order indemnification to data subject.
Criminal Conviction
- Imprisonment, fine, accessory penalty of temporary absolute disqualification from public office.
- Courts often award actual damages (documented costs), plus moral/exemplary.
Civil Damages
- Lump-sum award; judgment may be enforced by bank garnishment or sheriff levy.
Good-Faith Settlement
- Lender agrees to waive interest/penalties, issue Certificate of Full Payment, and delete data.

8. Practical Tips for Borrowers

Don’t pay under duress—payments made after threats may still be recovered as undue.
Use an alternate phone when installing any loan app; deny access to contacts/storage.
Check SEC list (https://www.sec.gov.ph/lending-companies-and-financing-companies/) before borrowing; avoid entities with only “cert. of authority processing.”
Monitor your credit file (CIS Act) via CIC accredited bureaus for incorrect negative reports.
Mental-health help: Call National Center for Mental Health (1553, 24/7) if anxiety becomes overwhelming.

9. Frequently Asked Questions

Question	Short Answer
If I still owe money, can I complain?	Yes. Harassment & privacy violations are illegal regardless of debt existence.
Will filing a complaint erase my debt?	No, but SEC-mediated settlements often reduce or waive interest, penalties, and collection fees.
Can the app sue me for libel if I post about their harassment?	Truthful, fair, and good-faith reports to warn others are privileged under Art. 361 RPC.
Do I need a lawyer?	Not for SEC/NPC filings; forms are designed for laypersons. For criminal/civil court actions, counsel is advisable, but Public Attorney’s Office (PAO) assists indigent complainants.

10. Conclusion

The Philippine regulatory landscape now offers robust, multi-layered protection for borrowers harassed by digital loan apps. Armed with evidence and the step-by-step procedures above, you can compel abusive lenders to stop, face penalties, and even compensate you for the distress they caused. Exercise your rights—regulators have become faster and fiercer, and successful cases are growing by the month.

Stay vigilant, document everything, and do not be intimidated—harassment is a crime, not a collection strategy.