Procedure for Loan App Harassment Complaint

Disclaimer: The following article is for general informational and educational purposes only. It is not legal advice. If you need legal assistance or if you are contemplating action against a loan app or any creditor, please consult a qualified attorney in the Philippines.

Overview

As online lending platforms have grown in popularity in the Philippines, so have complaints of harassment by certain lending or collection agencies. Consumers often report threats, public shaming tactics, unauthorized access and misuse of personal data, incessant calls, and other unethical or unlawful methods of debt collection.

This guide provides an overview of relevant laws and regulations in the Philippines, the agencies that enforce them, and a step-by-step procedure on how to file a loan app harassment complaint.

Relevant Laws and Regulations

  1. Revised Penal Code (RPC)

    • Certain harassing behaviors—such as threats, intimidation, libel, or unjust vexation—may be punishable under the RPC.
    • When harassment involves threats of harm, defamation, or repeated unwanted communication, it may be actionable as a criminal offense.

  2. Republic Act (R.A.) No. 10173, or the Data Privacy Act of 2012

    • This law governs the collection, processing, and handling of personal information.
    • If the loan app improperly collects or misuses your personal data (e.g., accessing your phone contacts and sending them messages without your consent), you may file a complaint with the National Privacy Commission (NPC).

  3. Republic Act (R.A.) No. 9474, or the Lending Company Regulation Act of 2007

    • This law regulates the organization and operations of lending companies in the Philippines.
    • Under this act, the Securities and Exchange Commission (SEC) has jurisdiction over the registration and regulation of lending companies.

  4. SEC Memorandum Circulars

    • The SEC has issued several circulars specifically addressing unfair debt collection practices.
    • They outline prohibited acts such as the use of violence, obscenities, threats, or disclosing a borrower’s personal information to unauthorized parties.

  5. Bangko Sentral ng Pilipinas (BSP) Regulations

    • If the loan provider is a bank or a non-bank financial institution supervised by the BSP, rules on fair debt collection and consumer protection may apply.
    • However, most online lending apps not affiliated with banks fall under SEC or DTI jurisdiction.

  6. Cybercrime Prevention Act of 2012 (R.A. No. 10175)

    • If harassment is carried out through text messages, emails, or social media (e.g., cyberstalking, cyberlibel, unauthorized disclosure of private data), the Cybercrime Prevention Act may be relevant.

Common Harassment Tactics by Loan Apps

  • Public Shaming or Disclosure: Sending messages to a borrower’s contact list or posting on social media groups to publicly shame the borrower.
  • Threats and Intimidation: Using threats of harm, arrest, or blacklisting to force payment.
  • Excessive Phone Calls or Messages: Bombarding the borrower (and sometimes their contacts) with relentless calls or text messages.
  • Unauthorized Access to Personal Information: Using a borrower’s phone contacts or files without permission, often to pressure them into paying.

Step-by-Step Procedure: Filing a Complaint

Below is a general guideline for filing a loan app harassment complaint in the Philippines.

1. Gather Evidence

  • Record Calls and Messages
    • Save screenshots, call logs, text messages, or chat threads showing the harassing behavior.
    • If there are voice calls with threats or abusive language, make an audio recording if possible (and allowed by local wiretapping laws).
  • Document All Communications
    • Create a timeline of the harassment, noting dates, times, and methods (SMS, call, email, social media, etc.).

2. Identify the Relevant Agency or Authority

  1. National Privacy Commission (NPC)

    • Jurisdiction: Data privacy violations
    • If the loan app is accessing personal information (e.g., contact lists) without consent, or if it is mishandling or misusing data, the NPC is the primary agency to approach.

  2. Securities and Exchange Commission (SEC)

    • Jurisdiction: Registration and regulation of lending companies
    • If the lender is operating without an SEC license or using unfair collection practices, you can file a complaint with the SEC’s Enforcement and Investor Protection Department (EIPD).

  3. Department of Trade and Industry (DTI)

    • Jurisdiction: Generally covers consumer complaints but typically for goods and services. The DTI may refer you to the SEC if it involves a lending company.
    • DTI can help mediate if the loan app operates in a manner that violates consumer protection laws in the broad sense.

  4. Bangko Sentral ng Pilipinas (BSP)

    • Jurisdiction: Banks, quasi-banks, and other BSP-supervised financial institutions.
    • If the online lending platform is BSP-supervised, you can file a complaint under the BSP’s Financial Consumer Protection Framework.

  5. Philippine National Police (PNP) or National Bureau of Investigation (NBI)

    • If the harassment includes threats of harm, blackmail, or extortion, consider filing a police report or blotter.
    • For cyber-related offenses, the NBI Cybercrime Division may be involved.

  6. Local Prosecutor’s Office

    • If you intend to file a criminal complaint (e.g., for grave threats, unjust vexation, or libel), you can submit a sworn affidavit and evidence to the prosecutor’s office for preliminary investigation.

3. File the Complaint

Depending on the agency, the complaint process often involves:

  1. Secure the Complaint Form

    • Visit the agency’s website or office to obtain the official complaint form (if applicable). Some agencies allow online filing.

  2. Write a Formal Complaint Letter/Affidavit

    • Clearly outline the facts and grounds:
      • How you obtained the loan
      • Nature of the harassment (dates, times, content)
      • Relevant sections of law you believe were violated
    • Include your personal details, the loan app’s details (name, address if available), and attach all evidence.

  3. Submit Evidence

    • Attach screenshots, call logs, affidavits of witnesses (if any), and any other documents.
    • Ensure you label and organize these properly (e.g., Annex A, Annex B) to make them easy to reference.

  4. Notarize Your Complaint (if required)

    • Some agencies require a notarized affidavit. Check the requirements of the specific office where you are filing your complaint.

  5. Follow Up

    • After submission, regularly check the status of your complaint.
    • Some agencies issue a reference number you can use for follow-ups.

4. Attend Hearings or Mediation (If Applicable)

  • Some agencies, like the SEC or the NPC, may call for mediation or a clarificatory hearing.
  • Prepare all your evidence and be ready to narrate the harassment in a clear and concise manner.
  • If a settlement is offered, consider consulting with a lawyer before agreeing to any terms.

5. Consider Filing Criminal and/or Civil Cases

  • Criminal Case
    • If the loan app’s representatives used unlawful threats, extortion, or other criminal acts, you or your lawyer can file a complaint directly with the prosecutor’s office.
  • Civil Case
    • If the harassment caused you reputational damage, emotional distress, or other injuries, you may explore filing a civil case for damages.

Tips and Best Practices

  1. Avoid Confrontation

    • While gathering evidence is important, do not engage in heated arguments or make threats in return.

  2. Document Everything

    • Evidence is crucial. Maintain meticulous records of any and all communications.

  3. Check License and Accreditation

    • Verify if the loan app or lending company is registered with the SEC. Unauthorized operators are more likely to engage in illegal practices.

  4. Consult a Lawyer Early

    • A legal professional can help you identify the strongest ground for your complaint and ensure it is properly filed.

  5. Protect Your Privacy

    • Limit the access that apps have to your phone—review app permissions regularly, and avoid granting access to phone contacts unless necessary.

Potential Outcomes

  • Agency Action: The NPC or SEC may issue cease-and-desist orders or impose fines on the loan company if it finds them at fault.
  • Criminal Charges: If the harassment is severe enough (e.g., involves threats or extortion), the prosecutor’s office may file criminal charges against the perpetrators.
  • Civil Remedies: A court could order the loan company or its agents to pay damages for harm caused, or issue injunctions to stop further harassment.

Conclusion

Loan app harassment is a serious matter in the Philippines, and the government has put in place various laws and regulatory bodies to protect consumers. Knowing your rights and the proper channels to file a complaint is crucial. Always remember:

  • Gather robust evidence of harassment.
  • Identify the correct government agency to handle your complaint.
  • Follow the proper filing procedures and stay updated on any hearings.
  • Where necessary, seek legal advice or representation.

By taking a systematic approach and leveraging the legal protections available under Philippine law, borrowers can assert their rights and demand accountability from erring lenders and collection agencies.

Note: Laws and regulations may evolve, and procedural requirements can vary depending on your locality and the specifics of your case. Always check the latest circulars from the SEC, the NPC’s official guidelines, and other government issuances, or consult a lawyer for updates and personalized guidance.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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