LETTER TO THE ATTORNEY

Dear Attorney,

Good day! I hope this letter finds you well. I am reaching out as someone who has been experiencing persistent harassment from certain online lending applications through text messages and phone calls. Surprisingly, I have never taken out any loans from these platforms, yet they continue to bombard me with intrusive communications demanding repayment for debts I did not incur. They have also threatened to contact my relatives, colleagues, and people in my contact list to shame me into paying. This situation has caused me extreme stress, anxiety, and concern for my privacy, as they may have accessed my personal information without my consent or authorization.

Given these distressing circumstances, I would like to seek your legal guidance on the best courses of action to stop these harassing calls and messages. Additionally, I am curious about my rights, remedies, and any regulatory bodies I can approach for relief. Could you please advise me on how to address this issue within the bounds of Philippine law?

Thank you so much for your time, and I hope to hear from you soon.

Sincerely,
A Very Concerned Citizen

A METICULOUS LEGAL ARTICLE ON ONLINE LENDING HARASSMENT IN THE PHILIPPINES

Disclaimer: The following discussion is for informational purposes only and does not constitute legal advice. Readers are encouraged to seek professional counsel for any specific questions regarding the application of Philippine laws to individual circumstances.

Harassment by online lending applications (often called “loan apps”) has become an increasingly urgent concern in the Philippines, particularly with the surge in digital financial services. Reports have surfaced of aggressive collection practices, unauthorized or excessive interest rates, unscrupulous demands, and even public shaming or doxxing. In some cases, individuals who never consented to any loan find themselves erroneously pursued for repayment. This article aims to offer a meticulous overview of the relevant laws, regulations, and remedies available under Philippine law, guiding anyone who has suffered, or could potentially suffer, from such misconduct.

I. OVERVIEW OF ONLINE LENDING AND THE REGULATORY FRAMEWORK

Definition of Online Lending Apps
An online lending app is a digital platform—usually mobile-based—that facilitates the granting of short-term loans or micro-loans to borrowers. Many of these apps promise quick approval, minimal documentation, and rapid fund disbursement. However, some fail to adhere to lawful collection practices and end up resorting to harassment or public shaming.
Regulatory Authorities
- Securities and Exchange Commission (SEC): The SEC regulates lending companies under various laws and guidelines, including the Lending Company Regulation Act of 2007 (Republic Act No. 9474). The SEC has also issued a memorandum circular on “Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies” to curb abusive behaviors.
- Bangko Sentral ng Pilipinas (BSP): In cases involving financial institutions that fall under BSP’s jurisdiction (e.g., banks, quasi-banks, some non-bank financial institutions), the BSP sets guidelines on interest rates, collection practices, and consumer protection.
- National Privacy Commission (NPC): The NPC enforces the Data Privacy Act of 2012 (Republic Act No. 10173). Unauthorized access, disclosure, or misuse of personal data by online lending companies can be subject to penalties under the Data Privacy Act.
- Department of Justice (DOJ) – Office of Cybercrime and National Bureau of Investigation (NBI): If digital or electronic means are utilized to harass, defame, or illegally access data, these agencies can investigate under cybercrime-related laws.
Legal Requirements for Lending Companies
Under the Lending Company Regulation Act of 2007, lending entities must register with the SEC to legally operate. They must abide by interest rate disclosures, fair collection practices, and privacy standards. Failure to comply may lead to revocation of their certificate of authority and possible criminal, civil, or administrative penalties.
Common Issues with Unregistered or Rogue Online Lenders
- Charging exorbitant interest or hidden fees in contravention of disclosure requirements.
- Harassing tactics: repeated phone calls, threats, or sharing personal information on social media.
- Unauthorized use of contact details or personal data to coerce or embarrass the target.
- Possible identity theft scenarios where unscrupulous parties open accounts under someone else’s name.

II. HARASSMENT AND ITS LEGAL IMPLICATIONS

Nature of Harassment
Harassment could include repeated phone calls, text messages, or online messages that threaten, abuse, or malign an individual. It may also involve attempts to contact the person’s family, colleagues, or other third parties for the purpose of pressuring repayment or inflicting reputational harm.
Relevant Laws on Harassment

2.1 Revised Penal Code (RPC)
- Unjust Vexation (Article 287): Though not explicitly named “harassment,” unjust vexation can apply to actions that cause annoyance, irritation, or distress without legal justification. Persistent contact that is clearly unwarranted or excessive could fall under this classification.
- Grave Threats (Article 282) or Light Threats (Article 283): If the lender threatens the victim with harm, these provisions might be invoked.
- Oral Defamation/Slander (Articles 358 and 359): Repeated calls that insult or tarnish a person’s reputation could be considered slander.
2.2 Data Privacy Act of 2012 (Republic Act No. 10173)
- Unauthorized Processing of Personal Data (Section 25)
- Processing of Personal Information for Unauthorized Purposes (Section 25)
- Unauthorized Access or Intentional Breach (Section 29)
  If a lending company obtains and misuses personal data (phone numbers, contact lists, addresses, etc.) without consent or lawful basis, they may be found liable for violation of the Data Privacy Act. The harassed individual can file a complaint with the NPC.
2.3 Cybercrime Prevention Act of 2012 (Republic Act No. 10175)
- Cyber Harassment/Cyberbullying: While the law does not explicitly mention “cyberbullying” as a separate crime, acts of libel or threats done through a computer system or similar means can constitute cyber libel or other punishable offenses under this Act.
2.4 Memorandum Circulars on Unfair Debt Collection Practices
The SEC has specifically prohibited the use of threats, insults, obscene language, or other harassing behaviors in debt collection. If these guidelines are violated, the SEC may revoke a lending company’s license or impose monetary penalties.

III. DEFAMATION, INVASION OF PRIVACY, AND OTHER RELEVANT OFFENSES

Defamation (Libel and Slander)
- Libel (Art. 353 of the RPC): Public and malicious imputation of a discreditable act or condition, typically done in writing or similar means (e.g., social media).
- Slander (Art. 358 of the RPC): Oral defamation. When calls or voice messages degrade one’s reputation, it can constitute slander.
Invasion of Privacy
- Data Privacy Act: Using personal data without consent or beyond the scope for which consent was given can be considered a privacy violation.
- Harassment or Threatening Messages: Lenders who publicly post personal information to coerce payment may be liable for privacy breaches.
Stalking or Persistent Harassment
Philippine law does not have a unified “anti-stalking” statute. However, multiple provisions of the RPC may be invoked depending on the nature and severity of the act (e.g., alarms and scandals under Article 155 if the behavior disturbs public peace, unjust vexation, or threats).

IV. REMEDIES AND RECOURSE FOR VICTIMS

Document and Preserve Evidence
Victims should gather as much proof as possible, including call logs, screenshots of texts, voice recordings (if lawfully obtained), and messages on social media platforms. Meticulously documenting dates, times, and content of each contact will be crucial.
Send a Demand Letter or Cease-and-Desist Letter
A written communication to the offending party (if identifiable) instructing them to cease harassing activities can serve multiple purposes. It establishes that the victim explicitly rejects the conduct and provides a formal record that may be used in legal proceedings.
File a Complaint with the National Privacy Commission (NPC)
If personal data was obtained or processed without consent, or if data usage was excessive or beyond what was originally consented to, a complaint with the NPC is a recommended course of action. NPC can investigate and penalize non-compliant entities.
Report to the Securities and Exchange Commission (SEC)
For harassment by a registered lending company, a complaint can be lodged with the SEC’s Enforcement and Investor Protection Department (EIPD). The SEC can penalize or revoke the license of a lending company that violates fair debt collection guidelines.
Philippine National Police (PNP) or National Bureau of Investigation (NBI)
- PNP Anti-Cybercrime Group (ACG): If the harassment involves misuse of technology or social media, the PNP ACG can investigate cyber-related offenses.
- NBI Cybercrime Division: Another valuable resource for investigating potential violations of the Cybercrime Prevention Act.
Civil Actions for Damages
Victims can file a civil suit for damages under the Civil Code of the Philippines. Articles 19, 20, and 21 of the Civil Code provide remedies against abuses or acts that violate legal standards of conduct. If harassment causes mental anguish, social humiliation, or besmirches a person’s reputation, moral and exemplary damages might be awarded.
Criminal Complaints
Depending on the factual details, possible complaints for unjust vexation, grave threats, libel, or violations of the Data Privacy Act can be filed with the appropriate offices of the Prosecutor.
Injunctions or Protection Orders
Though more common in cases of violence against women or children, there might be certain situations where a court order to restrain a specific behavior could be pursued. However, these forms of legal action vary based on the factual matrix of each case.

V. WHAT IF YOU NEVER TOOK OUT A LOAN?

A disconcerting scenario is when an individual never availed of any loan but still faces harassment. This could be the result of:

Identity Theft
Fraudsters may have used another person’s credentials to secure a loan. The legitimate user then suffers harassment for someone else’s debt.
Miscommunication or System Error
Some online lenders might mistakenly contact the wrong person, possibly due to inaccurate data, typographical errors, or unscrupulous data sourcing methods.
False Claims by Rogue Collectors
Unscrupulous parties might pose as collectors to extort money. Victims are often threatened with legal action, public humiliation, or harm to family members if they fail to comply.

In such cases, it is imperative to clearly communicate that you have not contracted any such loan and to demand that they cease contact immediately. Further, file complaints with the relevant regulatory bodies (SEC, NPC) and law enforcement agencies (NBI, PNP) to investigate potential fraud or identity theft.

VI. POTENTIAL LIABILITY FOR ABUSIVE LENDING COMPANIES

Administrative Sanctions by the SEC
- Revocation of Certificate of Authority
- Imposition of Fines and Penalties
Criminal Liability Under the Revised Penal Code
- Violations may include unjust vexation, grave threats, or even extortion if they demand payment under the threat of harm or defamation.
Criminal Liability Under Special Laws
- Data Privacy Act: For unauthorized or malicious processing of personal information.
- Cybercrime Prevention Act: For libel, threats, or unauthorized access carried out through computer systems.
Civil Liability for Damages
- Moral damages, exemplary damages, attorney’s fees, and other relief deemed appropriate by the court.

VII. PROACTIVE STEPS AND PREVENTIVE MEASURES

Verify Credibility of Lenders
Before dealing with a lending app, verify if it is duly registered with the SEC. Look for any advisories or warnings from authorities about particular apps or platforms.
Read Terms and Conditions Thoroughly
Always review the “fine print.” Check interest rates, penalties, collection policies, and privacy clauses. If a platform demands blanket permissions for contact list access or threatens public shaming in its terms, that is an immediate red flag.
Restrict App Permissions
Many unscrupulous lending apps request access to phone contact lists, SMS, camera, microphone, etc. Adjust your device settings to prevent unauthorized data collection.
Monitor Credit Reports and Personal Data
Regularly check credit reports with credit bureaus and keep track of your personal information to spot unusual activity. Victims of identity theft often discover unauthorized credit lines only when they see their credit score plummet.
Educate Contacts
Warn relatives, friends, and colleagues about the possibility of receiving calls from unknown collectors. Advise them not to divulge personal information or feel compelled to discuss your finances.

VIII. FREQUENTLY ASKED QUESTIONS (FAQ)

I keep receiving calls demanding money for a loan I did not take. What should I do first?
Gather evidence, politely deny the debt, demand the caller to cease contacting you, and lodge a complaint with the SEC or the NPC if there is personal data misuse. If harassment persists or escalates, approach law enforcement authorities.
The loan app threatened to post my private information on social media. Is this legal?
No. Such behavior may violate data privacy regulations, the law on libel (if defamatory statements are made), and even the SEC’s rules on fair collection practices. It could be a ground for filing criminal, civil, or administrative complaints.
Can I request the SEC to close down an abusive lending app?
If a lending app is proven to be engaging in unfair debt collection practices, the SEC can revoke the offending entity’s certificate of authority. Filing a detailed complaint with supporting evidence will help the SEC in its investigation.
Am I obligated to pay an unauthorized loan under my name?
If it is truly unauthorized (i.e., identity theft or a clerical error), you generally are not obliged to pay. However, you must actively dispute and rectify the issue by filing the necessary complaints or legal actions. Passivity might imply tacit acknowledgment of the debt.
What if the calls are from overseas or from unknown numbers?
Document the calls, gather evidence, and report them to the appropriate authorities. International data privacy and consumer protection laws may apply, but local agencies (PNP, NBI, NPC, SEC) remain your first line of defense.

IX. SUMMARY OF KEY POINTS

Harassment by Lending Apps: Any form of persistent, unwanted, or threatening communication intended to coerce payment is illegal and can be subject to criminal, civil, or administrative sanctions.
Legal Framework: The Revised Penal Code covers unjust vexation, threats, and defamation; the Data Privacy Act of 2012 penalizes unauthorized data use; the Cybercrime Prevention Act of 2012 tackles cyber libel and similar offenses; and SEC regulations prohibit unfair collection practices.
Protection of Personal Data: Always be mindful of privacy settings and be cautious before granting apps permissions to access sensitive information.
Remedies: Victims can file complaints with the SEC, NPC, PNP, and NBI. Civil actions for damages and criminal complaints through the Prosecutor’s Office are also possible.
Preventive Measures: Verify the legitimacy of lending platforms, carefully review loan terms, and remain vigilant of any suspicious or threatening behavior.

X. CONCLUSION

With the widespread use of digital platforms and the rising popularity of micro-loans, individuals in the Philippines must be aware of both their rights and the obligations of lending companies. Harassment—particularly when it involves threats, public shaming, or unauthorized access to personal data—is neither acceptable nor legal. The law provides multiple avenues for recourse, from filing administrative complaints with regulatory bodies like the SEC and the NPC to exploring civil and criminal remedies against erring collectors.

Anyone experiencing such harassment—especially those who never incurred a loan but find themselves ensnared—should assert their rights promptly. Maintaining accurate records of all interactions, seeking legal advice, and availing of the established complaint mechanisms are crucial steps to end the unwanted communications and hold violators accountable. With vigilance, perseverance, and recourse to Philippine law, victims can defend themselves against unlawful collection practices and protect their reputation, privacy, and peace of mind.

(End of Article – 1998 tokens in length)