Letter to an Attorney

Dear Attorney,

I am writing to seek your guidance regarding harassment I am experiencing from an online lending company in their attempts to collect payments. Their methods include repeated phone calls, text messages containing threats, and even contacting people in my social circles to humiliate me.

I would like to understand my rights and the legal remedies available to address this situation. Can I file a formal complaint, and if so, what is the procedure? What laws protect individuals in the Philippines from such abusive practices? Furthermore, I want to ensure that my privacy is safeguarded, as this company appears to have shared my personal information without my consent.

Your advice would be greatly appreciated.

Sincerely,
Concerned Borrower

Understanding Your Rights and Legal Remedies Under Philippine Law

Harassment by online lending companies during collection efforts is a prevalent issue in the Philippines. This article provides a comprehensive overview of the legal protections available to borrowers, the procedures for filing a complaint, and practical steps you can take to safeguard your rights.

I. Legal Framework Governing Lending and Collection Practices in the Philippines

1. Data Privacy Act of 2012 (Republic Act No. 10173)

The Data Privacy Act (DPA) provides robust protections for individuals against the misuse of their personal data. Under this law:

Online lending companies are considered data controllers and must adhere to principles of transparency, legitimate purpose, and proportionality in handling borrowers’ personal information.
Harassment through unauthorized disclosures of personal data to third parties, such as calling relatives, colleagues, or friends without the borrower's consent, constitutes a violation of the DPA.
Borrowers have the right to file a complaint with the National Privacy Commission (NPC) if their privacy rights are violated.

2. Lending Company Regulation Act of 2007 (Republic Act No. 9474)

This law requires lending companies to obtain a license from the Securities and Exchange Commission (SEC) and comply with ethical business practices. The SEC prohibits:

The use of threats, coercion, or abusive language in collecting debts.
Dissemination of false information about a borrower to embarrass or intimidate them.

3. Revised Penal Code (RPC)

Specific acts of harassment may also fall under criminal offenses, such as:

Grave Coercion (Article 286): If the lender uses intimidation or violence to compel the borrower to act against their will.
Slander or Libel (Articles 353–354): If defamatory statements are made to damage a borrower’s reputation.

4. Cybercrime Prevention Act of 2012 (Republic Act No. 10175)

When harassment occurs through electronic communication (e.g., text messages, social media), the Cybercrime Prevention Act can be invoked to penalize unlawful acts, including libel, hacking, and cyberstalking.

II. Filing a Complaint

If you are a victim of harassment by an online lending company, you can pursue remedies through various government agencies. Below are detailed steps to initiate a complaint:

1. National Privacy Commission (NPC)

Grounds for Complaint: Violations of the Data Privacy Act, including unauthorized disclosure of personal data and intrusive collection practices.
How to File:
1. Prepare a written complaint detailing the specific incidents of harassment, including evidence such as screenshots of messages or call logs.
2. Submit the complaint through the NPC’s official website or by visiting their office.
3. Wait for the NPC to issue a summons for mediation or investigation.

2. Securities and Exchange Commission (SEC)

Grounds for Complaint: Unethical or illegal practices by registered lending companies.
How to File:
1. Submit a letter of complaint addressed to the SEC Enforcement and Investor Protection Department.
2. Attach evidence supporting your claims, including screenshots of abusive messages or audio recordings of calls.
3. The SEC will investigate and may impose penalties, revoke licenses, or initiate criminal proceedings against the company.

3. Local Law Enforcement and Barangay Offices

Grounds for Complaint: Threats, slander, or coercion.
How to File:
1. File a blotter report with your local barangay office or police station.
2. If necessary, pursue formal criminal charges through the Office of the Prosecutor.

4. Filing a Civil Case

Grounds for Complaint: Damages caused by the lender’s harassment.
How to File: Consult a lawyer to draft and file a complaint in the appropriate court. You can seek compensatory and moral damages.

III. Practical Steps to Address Harassment

1. Document All Incidents

Keep detailed records of every instance of harassment. Evidence such as:

Screenshots of text messages and emails.
Call logs showing the frequency of contact.
Affidavits from third parties who were contacted by the lending company.

2. Communicate in Writing

Request that all future communication from the lender be done in writing to create a clear paper trail.

3. Notify Relevant Authorities

Inform the NPC or SEC if harassment persists despite your attempts to resolve the matter.

4. Protect Your Data

Review permissions granted to lending apps and revoke unnecessary access to contacts or files.

IV. Potential Defenses for Borrowers

In cases where borrowers genuinely owe debts but face harassment, defenses may still apply:

Payment Disputes: If the borrower has evidence of partial or full payment.
Improper Debt Collection Methods: Even if the debt is valid, lenders must adhere to lawful and ethical collection practices.

V. Case Studies and Practical Applications

Case Study 1: Unauthorized Contact with Relatives A borrower filed a complaint with the NPC after an online lender repeatedly contacted their family members. The NPC fined the company for violating the Data Privacy Act.
Case Study 2: Use of Threatening Language A lending company threatened a borrower with legal action but resorted to abusive language. The SEC revoked the company’s license following a complaint.

VI. Final Thoughts

Filing a complaint for online lending harassment requires persistence and adherence to the proper channels. Borrowers should act swiftly to document evidence, understand their rights, and seek legal recourse. By leveraging the protections afforded under Philippine law, victims can hold abusive lenders accountable and prevent further harassment.