Dear Attorney,
I am reaching out because I am experiencing harassment from a lending app. I admit that I was delayed in making my payments, but I had no intention of running away from my obligations. Recently, one of their agents posted about me on social media, which has caused me great distress. What legal steps can I take to address this situation?
Sincerely,
Concerned Borrower
Insights
In the Philippines, debt harassment is a serious issue that can involve unlawful or abusive behavior from lending institutions or collection agents. While creditors have the right to collect money owed to them, this right is not limitless. The Fair Debt Collection Practices law and relevant provisions under the Data Privacy Act of 2012 (Republic Act No. 10173) help protect borrowers from harassment and privacy violations.
1. The Right to Privacy Under the Data Privacy Act, lenders must respect a borrower’s right to privacy. Publicly sharing personal details of a borrower, especially without their consent, constitutes a violation of the law. This could lead to penalties, including fines and imprisonment for those responsible.
2. Harassment by Collection Agents Debt collection agents must adhere to ethical practices. Harassment, including threatening or using derogatory language, violates legal provisions. The Revised Penal Code may apply in cases where such actions are considered unjust vexation or grave coercion. If a collection agency posts or shames a debtor online, it could fall under cyber libel, a punishable offense under the Cybercrime Prevention Act of 2012 (Republic Act No. 10175).
3. Remedies for Borrowers Borrowers facing such harassment can file a complaint with the National Privacy Commission (NPC) for violations of the Data Privacy Act. They may also file a case of cyber libel if public shaming is involved. Furthermore, borrowers can seek remedies through civil action for moral damages due to emotional distress caused by abusive collection practices.
In addressing debt-related disputes, borrowers can file their complaints through legal channels such as the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC) if the lending entity is registered.