Dear Attorney,

Good afternoon. I hope this letter finds you well. I am writing to seek your legal advice regarding a distressing situation I have encountered with an online lending application. This platform has been harassing me for repayment, and it appears they have accessed my contacts without my explicit consent. They even sent intrusive messages to my friends and colleagues, causing me extreme anxiety and distress. I have screenshots and other records of these communications, but I prefer not to disclose any specific personal details or company names at this point.

I would greatly appreciate your guidance on how to address this issue. My primary concern is stopping the unlawful or excessive methods they are using, especially in terms of communication with my contacts. Moreover, I want to explore the potential legal remedies available to me under Philippine laws.

Thank you for taking the time to review my situation. I look forward to any advice or next steps you can provide.

Respectfully,

Concerned Borrower

LEGAL ARTICLE: A METICULOUS OVERVIEW OF YOUR RIGHTS AND REMEDIES AGAINST ONLINE LENDING HARASSMENT UNDER PHILIPPINE LAW

Introduction
Online lending applications have surged in popularity throughout the Philippines due to their convenience and accessibility. They offer quick loans without the need to visit a physical branch, making them attractive to those who require urgent funds. However, some online lenders resort to aggressive and unscrupulous methods to collect payments. This article aims to provide a thorough discussion of the relevant Philippine laws and remedies available to individuals facing harassment, privacy breaches, and other questionable practices by certain lending entities.
Regulatory Landscape
In the Philippines, the primary agencies tasked with regulating lending companies are the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP). Traditional banks and some financial institutions typically fall under the BSP’s supervision. Lending companies, however, must register with the SEC and comply with relevant regulations under existing laws such as Republic Act No. 9474, or the Lending Company Regulation Act of 2007.
Further, to protect the general public and deter unscrupulous lending or financing operations, the SEC has continued to issue memorandum circulars that govern the maximum allowed interest rates, fees, and ethical debt collection practices. The recent proliferation of online lending apps has necessitated stricter oversight and enforcement.
Data Privacy Act of 2012 (R.A. No. 10173)
One of the principal concerns raised by borrowers is the unauthorized access and dissemination of their personal data, including contact information. The Data Privacy Act of 2012 (DPA) protects individuals from unlawful use and processing of their personal data. Under the DPA, personal information controllers (PICs) and personal information processors (PIPs)—which may include lending apps and their developers—are duty-bound to observe the principles of transparency, legitimate purpose, and proportionality when processing data.

Transparency: Lending apps should inform users about what specific data they collect, how this data will be used, and with whom it may be shared.
Legitimate Purpose: Any data collection must be carried out for a purpose clearly stated to the data subject, such as evaluating a loan application or facilitating loan repayments.
Proportionality: The collected data must be directly related and strictly necessary for the stated purpose, meaning it should not exceed what is required for legitimate operations.

When an online lending app accesses a borrower’s entire contact list and sends unsolicited messages to friends or relatives, it can be seen as an excessive and unauthorized data processing activity. In many cases, this practice violates the borrower’s privacy rights and may subject the lending company to administrative, civil, or even criminal penalties under the DPA. Borrowers who suffer harm can file a complaint before the National Privacy Commission (NPC).

Harassment and Unfair Debt Collection Practices
Debt collection, while a legitimate pursuit, must be done lawfully and ethically. Many borrowers have reported receiving calls, text messages, or online communications that involve threats of public shaming, profanity, or intimidation. These practices can be considered harassment.
In a March 2019 Advisory, the SEC reiterated that unfair, abusive, or humiliating collection practices are prohibited. Lending companies cannot engage in practices that involve the use or threat of violence, or other criminal means to harm the physical person, reputation, or property of any person. They are also barred from making false or misleading representations to the borrower. If a lending company or its agents violate these guidelines, they can face severe penalties and possible revocation of their license to operate.
Legal Basis for Protection Under the Revised Penal Code
Borrowers subjected to harassment may also find legal remedies under certain provisions of the Revised Penal Code (RPC). For instance, if a representative of the lending app threatens violence or commits libelous acts, criminal complaints may be filed. Libel (Article 353 of the RPC) involves public or malicious imputation of a crime or a vice to a person. Meanwhile, grave threats (Articles 282 and 283 of the RPC) refer to acts of intimidation that impose fear of an unlawful act or a crime. The severity of the threat can dictate whether it is categorized as grave or light.
These provisions serve to protect borrowers from harmful or intimidating tactics that cause undue stress and mental anguish. Affected individuals can approach law enforcement authorities or the prosecutor’s office for legal recourse.
Civil Remedies for Damages
When harassment and privacy violations lead to reputational harm or emotional distress, borrowers may sue for damages under Article 19, 20, and 21 of the Civil Code, which mandate everyone to act justly and observe honesty and good faith. A breach of these provisions, coupled with the wrongful act of exposing personal information to third parties, could justify a claim for moral and even exemplary damages in certain cases.
The overarching principle is that no one should unjustly enrich themselves at the expense of another, nor should they cause harm to another’s rights without facing the necessary civil liabilities.
Role of the National Privacy Commission
The NPC enforces the Data Privacy Act and has the power to investigate potential breaches of privacy rights. Borrowers who feel their privacy has been violated by an online lending app can lodge a formal complaint with the NPC. This starts an investigative process, and if the NPC finds merit in the complaint, it can initiate proceedings that could lead to administrative fines or criminal prosecution against the offender. The NPC can order the lending app to correct its data processing methods and potentially award indemnification to the aggrieved party.
Filing a Complaint with the SEC
The Securities and Exchange Commission is also empowered to receive and act on complaints involving lending companies, especially where there are allegations of abusive collection practices. If a borrower demonstrates that the lending app repeatedly engages in conduct violative of SEC regulations (like sending harassing messages or shame campaigns), the SEC may order the cessation of these practices or revoke the lending company’s registration.
The SEC’s proactive measures include the issuance of Cease and Desist Orders (CDOs) and revocation of Certificates of Authority for persistent violators. If a borrower wants to file a complaint, they should gather evidence (screenshots, call recordings, text messages) and file a written statement describing the harassing tactics.
Other Government Agencies Involved
Apart from the NPC and the SEC, the Department of Justice (DOJ) and local law enforcement agencies may also be involved, particularly when criminal behavior is alleged. For instance, serious threats or coercion might require intervention from the Philippine National Police (PNP). If the offenses are within the ambit of cybercrime provisions, the Cybercrime Investigation and Coordinating Center (CICC) under the Department of Information and Communications Technology (DICT) might also lend expertise.
Common Defenses of Lending Companies
Online lending apps often argue that the borrower consented to allow the application to access certain phone features, including contacts, as part of the terms and conditions. While some borrowers may unknowingly click “accept” or “allow” during the app installation, this practice still raises questions about valid and informed consent. The DPA requires that consent be informed, freely given, and specific. Blanket consents hidden in fine print or implied consents do not necessarily shield the lender from liabilities if they engage in abusive or disproportionate data usage.
Steps for the Borrower to Take

Document All Interactions: Keep records of harassing messages, calls, and any threats. Screenshots and call logs are especially important.
Cease and Desist Request: Inform the lending app in writing to stop unauthorized or harassing behavior.
Check Privacy Settings: Revoke unnecessary permissions granted to the app, if feasible, and consider uninstalling it if the loan contract has ended or if you no longer need their services.
Seek Professional Assistance: Consult with a lawyer knowledgeable in consumer protection, data privacy, and debt collection laws.
File Complaints with Relevant Agencies: Approach the SEC, the NPC, or local law enforcement authorities if the conduct escalates into threats or other criminal forms of harassment.

Potential Penalties for Lending Companies
If found liable, lending companies and their officers could face:

Administrative Sanctions: The SEC can impose monetary penalties, suspend or revoke the company’s certificate of authority.
Criminal Penalties: If data privacy breaches or criminal harassment are established, company officials could face fines or imprisonment under the DPA and the RPC.
Civil Damages: Borrowers can claim moral and, in some cases, exemplary damages if the company’s actions caused emotional distress, reputational damage, or other forms of injury.

Consumer Protection Laws
While consumer protection in the Philippines traditionally focuses on issues such as product quality and advertising, certain provisions in the Consumer Act of the Philippines (R.A. No. 7394) can apply to credit-related services. As providers of financial services, lending apps must ensure fair dealings with consumers. Though debt collection is not specifically the core subject of this Act, the general policy of protecting consumers from deceptive and unfair sales practices can extend to how financial products are offered and how lenders interact with their clients.
Cybercrime Prevention Act of 2012 (R.A. No. 10175)
If the harassment involves electronic means—such as social media shaming, hacking into personal devices, or the unauthorized alteration of data—provisions of the Cybercrime Prevention Act of 2012 may become relevant. Libel or threats committed through a computer system or similar devices may fall under cyber libel or cyber threats. Penalties for cyber libel are often more severe than ordinary libel due to the wide reach and permanence of online platforms.
Importance of Legal Counsel
Given the complexity of laws that intersect in these scenarios—data privacy, consumer protection, corporate regulation, and criminal statutes—seeking professional legal advice is crucial. A competent lawyer can guide aggrieved borrowers through the specific procedural steps, from drafting cease and desist letters to filing formal complaints or even instituting civil or criminal lawsuits.
Alternative Dispute Resolution
In certain cases, borrowers and lending companies may resolve disputes through mediation or settlement, especially if the borrower truly intends to repay but requires more time or a restructured payment plan. However, alternative dispute resolution options may not always be viable if the company resorts to abusive tactics. Arbitration clauses might exist in some lending agreements, so reviewing the contract terms is essential.
Key SEC Memorandum Circulars
The SEC has released Memorandum Circulars aiming to curb excessive interest rates and instructing lending companies on appropriate debt collection practices. For instance, the SEC’s guidelines on the limit of interest and penalties (under certain memoranda) help protect borrowers from usurious rates. The Commission also clarifies that the use of shame campaigns, threats, and posting personal data on public platforms constitutes unethical and illegal practices.
Practical Tips When Considering an Online Loan

Read the Fine Print: Before downloading or installing an app, review the permissions requested.
Check Credibility: Validate the registration details of the lending company with the SEC.
Review Interest Rates and Fees: Beware of hidden or excessive charges.
Consider Alternatives: Explore borrowing from accredited financial institutions or government-backed programs that offer more transparent terms.

Enforcement Challenges
While the regulatory framework is clear, enforcement poses a significant challenge. Online lending apps may operate with minimal staff, sometimes even from remote or foreign locations. The novelty of technology-driven lending also means that some forms of harassment can occur instantaneously, making it difficult for authorities to respond swiftly. Nonetheless, the SEC’s crackdown on unregistered or unethical operators shows progress in upholding borrower rights.
Global Context and Comparisons
Issues with online lending harassment are not unique to the Philippines; other jurisdictions also grapple with unscrupulous lenders who leverage technology to pressure borrowers. Countries such as India, Indonesia, and Vietnam have likewise faced a surge in mobile-based lending complaints, prompting the enactment or amendment of stricter data protection laws and consumer safeguards. Observing international best practices can inform regulators in further refining Philippine laws.
Future Developments
With the rapid technological evolution, lawmakers and regulators may introduce new legislation or regulations specifically targeting online lending platforms. This could involve imposing stricter licensing requirements, refining digital collection practices, or imposing higher penalties for data privacy infractions. Borrowers should watch for announcements from the SEC, NPC, and other relevant agencies to stay informed of their rights.
Conclusion
In the Philippine setting, borrowers enjoy ample legal protection against harassment and privacy violations by online lending apps. By invoking the Data Privacy Act of 2012, the Lending Company Regulation Act, the Revised Penal Code, and relevant SEC circulars, aggrieved borrowers can seek redress and hold unscrupulous lenders accountable for any harm caused. Documenting all incidents, consulting with legal counsel, and filing complaints with the appropriate agencies are critical steps toward ensuring these lenders do not continue their abusive practices.
While these legal frameworks are robust, the key to curbing harassment lies in effective enforcement and informed consumer choice. Borrowers should remain vigilant, exercise due diligence, and promptly seek legal recourse when their rights are violated. As online lending continues to evolve, stakeholders—borrowers, regulators, and legitimate lenders—must collaborate to foster a fair and transparent financial ecosystem.
Final Thoughts
If you find yourself in a similar predicament, remember that you are not without options. The law provides mechanisms to protect your rights, particularly your right to privacy and freedom from undue harassment. Standing up against these practices is not just about safeguarding yourself; it is also about setting a precedent that will encourage responsible lending practices across the industry. By following the proper legal channels and arming yourself with knowledge of your rights, you can address the harassment effectively and help pave the way for a more ethical lending environment in the Philippines.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For specific concerns and tailored guidance, always consult a qualified attorney.