Debt Collection Harassment: What Are My Rights When a Debt Collector Contacts My Employer’s Departments?

Dear Attorney,

I am currently facing an issue where a debt collector has been repeatedly sending emails to several departments connected with my work. I am concerned that this is not only causing embarrassment but may also negatively impact my professional standing. While I understand the obligation to pay my debts, I feel this method of communication is inappropriate and possibly illegal. Can you advise on what legal steps I can take to address this situation? I want to know if there are any laws or regulations that protect me in such cases, and how I can ensure my employer is not unnecessarily dragged into this matter.

Sincerely,
A Concerned Employee

Insights

The situation you have described may indeed involve a violation of your rights under Philippine law. The law that primarily governs debt collection practices in the Philippines is Republic Act No. 10173, otherwise known as the Data Privacy Act of 2012, as well as certain provisions of the Civil Code. Debt collectors are prohibited from engaging in behavior that harasses or humiliates individuals, especially in a public or professional setting.

1. Violation of Data Privacy: If the debt collector is sending emails to different departments within your company, they may be sharing your personal financial information without your consent. Under the Data Privacy Act of 2012, personal data, including financial obligations, must be handled with utmost confidentiality. Sharing this data with individuals or departments not involved in the matter could be a violation of your right to privacy. If this is the case, you may file a complaint with the National Privacy Commission (NPC), which handles data privacy violations. The NPC can investigate and impose penalties on companies or individuals found to be mishandling personal data.

2. Unfair Collection Practices: Although the Philippines does not have an equivalent of the Fair Debt Collection Practices Act (as in the United States), certain principles under civil law and general contract law still apply. Specifically, collectors are expected to act in good faith when seeking payment. Repeatedly contacting your employer's departments without your explicit consent could be deemed as harassment or coercion, which is contrary to the principles of fairness and good faith in debt collection.

3. Defamation and Harassment: Sending emails to various departments in your workplace could also be considered a form of harassment or even defamation, especially if the communications lead to your embarrassment or damage to your reputation. The Civil Code of the Philippines provides protection against defamation, which occurs when someone publicly communicates false information that harms your reputation. While the debt itself may not be false, disclosing it unnecessarily to your colleagues may cross the line into harassment.

4. How to Respond: To address this situation, it would be prudent to:

   • Send a formal cease-and-desist letter to the debt collector, requesting that they stop contacting your workplace and limit their communications to you directly.
   • Report the collector to the NPC if there is evidence of a privacy violation.
   • Document the harassment by keeping copies of all emails and any communications made by the debt collector to your employer’s departments.
   • Consider consulting the Department of Trade and Industry (DTI) or local consumer protection bodies that may have jurisdiction over unfair debt collection practices.

In addition, you may want to speak to your Human Resources department to explain the situation in case this impacts your employment, assuring them that you are dealing with the matter privately and legally.