Dear Attorney,

I have fully paid my debt to an online lending company, but they continue to harass me. They still message and call, threatening to take further action despite my payments being settled. I feel deeply troubled and disturbed by their behavior. What steps can I take to stop this harassment, and can I hold them accountable for their actions?

Sincerely,
A Concerned Borrower

Insights

In the Philippines, online lending companies are bound by the law to follow strict regulations regarding debt collection practices. The harassment you are experiencing, despite having already settled your debt, can potentially be considered a violation of these laws.

The Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) have issued guidelines and policies concerning lending institutions' conduct, especially with respect to their collection methods. Under the Lending Company Regulation Act of 2007 (Republic Act No. 9474) and more recent advisories from the SEC, abusive debt collection practices are strictly prohibited. Lenders, including online platforms, are not permitted to harass borrowers through excessive calls, public shaming, threats, or any form of intimidation. Specifically, the SEC has established rules prohibiting unfair practices, which include the following:

Excessive Harassment: Lenders must not resort to constant calling, messaging, or any form of excessive communication, particularly after the debt has been settled.
Unlawful Threats: Lenders are prohibited from making any threats of legal action or collection tactics that are disproportionate or unreasonable.
Privacy Violations: Public shaming, including disclosing your debt to third parties or using your personal information in a manner that violates your privacy, is strictly forbidden.

Steps to Consider:

Gather Evidence: Compile all relevant documents, such as proof of payment, screenshots of harassing messages, call logs, or any other records that demonstrate the lender's inappropriate actions. This will help you build a strong case should you decide to pursue legal action.
File a Complaint: You can lodge a formal complaint with the Securities and Exchange Commission (SEC). The SEC handles complaints related to unfair debt collection practices, particularly by online lending companies. Filing this complaint can prompt an investigation into the company’s conduct.
Issue a Demand Letter: Through your lawyer, you may issue a demand letter to the online lending company, demanding them to cease all forms of harassment immediately. The demand letter can also serve as a prelude to legal action if they fail to comply.
Legal Recourse: If the harassment persists, you may pursue legal remedies. Under the Anti-Obstruction of Justice Law and other consumer protection laws, you may have grounds to file a case for damages due to emotional distress or breach of privacy. Your lawyer can guide you in determining the appropriate civil or criminal actions based on the evidence and the lending company’s conduct.

While settling debts is essential, it is equally important for lenders to respect the rights of borrowers. Harassment and intimidation tactics violate the principles of fair debt collection and should not be tolerated.

In your case, considering that the debt has been fully paid, it would be advisable to promptly seek legal assistance to put an end to this harassment and ensure that the online lender is held accountable for their actions.