Concern

I am being harassed by an agent from the online loan app "CASHBAY." Despite their advertised 125-day payment term, I discovered that their loans are actually due within just seven days, which is misleading. I have been paying my dues even under these unfair terms. However, this time the agent went too far by threatening me and fraudulently using my information to order snacks on Foodpanda amounting to over PHP 5,000. They are now threatening to expose me on social media. This company is also not registered with the SEC. I want the harassment to stop and to settle my debt according to the law.

∇ Legal Contemplator

Foundational Observations

Misleading Payment Terms: The advertised payment term of 125 days but actual term of seven days is deceptive. This raises concerns about misrepresentation, which is a violation of consumer protection laws.
Harassment by Loan Agents: Threatening and fraudulent activities by loan agents (e.g., placing unauthorized Foodpanda orders and threatening to expose borrowers on social media) fall under harassment, which is illegal under the Philippines’ Data Privacy Act and Anti-Cybercrime Act.
Unregistered Lending Entity: Operating as a lending entity without proper SEC registration violates the Lending Company Regulation Act of 2007 (Republic Act No. 9474).

Step-by-Step Analysis

Clarification of the Core Legal Issues
- Is this case primarily about the illegal practices of an unregistered lending entity, or is it more focused on the harassment by an individual agent? Likely, both are intertwined.
- The agent’s threats and fraudulent actions are symptomatic of larger systemic issues within these predatory lending platforms. However, isolating each issue is important to provide clear remedies.
Nature of Misrepresentation
- Advertised vs. Actual Payment Terms: By stating that the loan is payable in 125 days but requiring payment within seven days, CASHBAY could be guilty of false advertising. This breaches the Consumer Act of the Philippines (Republic Act No. 7394), which protects borrowers from deceptive marketing practices.
- Transparency in Lending: Section 6 of RA 9474 mandates all lending companies to disclose clear terms and conditions, including interest rates and repayment schedules. Failure to do so invalidates certain terms of the agreement and can lead to administrative penalties or closure.
Harassment and Fraudulent Acts
- Foodpanda Order: Unauthorized use of personal information for fraudulent transactions constitutes identity theft under the Data Privacy Act of 2012 (Republic Act No. 10173). It also violates the Anti-Cybercrime Act of 2012 (RA 10175), which criminalizes cyber harassment and fraudulent acts.
- Threats to Expose: Public shaming on social media as a debt collection method breaches Republic Act No. 10173, as it involves unauthorized disclosure of private information. Furthermore, the Cybercrime Act prohibits the use of social media for harassment.
Unregistered Status
- Lending companies are required by law to register with the SEC to ensure compliance with ethical lending practices. Operating without SEC registration subjects CASHBAY to penalties, including permanent closure under RA 9474.

Uncertainty and Iteration

Could this issue also implicate Foodpanda in any way? Likely not, as their involvement is indirect. However, investigating how the loan agent was able to place the order is worth exploring. Did the agent use saved payment details or simply exploit the borrower’s name for delivery? This determines the scope of liability.
What legal remedies are practical? While filing a complaint with the SEC and the NPC (National Privacy Commission) is clear, how do we ensure these threats stop immediately? Should temporary restraining orders (TROs) or cease-and-desist orders be pursued?

Backtracking and Revision

Should the focus shift from CASHBAY as a company to holding the specific agent accountable? Not entirely. While the agent's actions are a primary concern, they reflect deeper organizational practices. Both must be addressed to prevent recurrence.
Is non-payment of dues justified given these violations? Legal advice suggests partial payment with conditions might protect the borrower from further threats while ensuring compliance with obligations.

Recommendations and Resolution

Immediate Actions:
- Document Everything: Compile all evidence, including screenshots of threats, transaction details, and any communication with the agent.
- Report Harassment: File a formal complaint with the National Privacy Commission under RA 10173 for unauthorized use of personal data.
- Contact SEC: Report CASHBAY for operating without proper registration. Provide supporting evidence of deceptive lending practices.
Legal Remedies:
- File a complaint under the Cybercrime Law for online threats and harassment.
- Consider a Temporary Restraining Order (TRO) or a formal demand letter through a lawyer to stop harassment immediately.
Payment Obligations:
- Pay only the amount legally owed. Calculate repayments based on the original terms (125 days) as advertised.
- Refuse to pay additional charges stemming from the misleading loan duration or fraudulent transactions.
Long-Term Action:
- Advocate for stricter regulation and monitoring of online lending platforms by government agencies.

Final Answer

You should:

File a formal complaint with the National Privacy Commission for harassment and data misuse under the Data Privacy Act of 2012.
Report CASHBAY to the Securities and Exchange Commission (SEC) for operating without registration and deceptive practices.
Lodge a case with the Philippine National Police Anti-Cybercrime Group (PNP-ACG) for threats and fraudulent online activities.
Pay only what you legally owe, calculated based on the advertised terms, and dispute any excess charges.
Seek legal advice to issue a demand letter or obtain a TRO against the agent and company to prevent further harassment.