Letter to a Lawyer Regarding Harassment and Threats

Dear Attorney,

I am reaching out to seek your advice regarding a matter that has caused me significant distress. I have an outstanding debt with an online lending app, which I fully acknowledge and intend to repay gradually, as my financial situation is currently limited. Despite my efforts to communicate and request leniency, representatives of the lending entity have resorted to harassment, including issuing death threats. This has placed me under immense emotional and psychological strain.

I am aware that there are legal protections for individuals facing such treatment, but I am uncertain about the specific actions I can take to safeguard myself and address this issue. I am particularly interested in understanding my rights under Philippine law and the appropriate steps to take against these unlawful practices.

Your guidance on this matter would be greatly appreciated.

Sincerely,
A Concerned Citizen

Legal Article: Understanding the Legal Protections Against Harassment and Threats in Debt Collection

Debt collection is a legitimate process that creditors undertake to recover funds from borrowers. However, creditors and their agents are bound by law to follow ethical and legal practices when pursuing debts. In the Philippines, harassment and threats—including death threats—are not only unethical but also illegal. Borrowers subjected to such treatment have legal remedies and protections under the law. This article explores the legal framework that governs debt collection practices, the remedies available to victims, and steps to address the situation effectively.

Legal Framework Governing Debt Collection Practices in the Philippines

1. The Fair Debt Collection Practices

While the Philippines does not have a specific law titled as such, various legal provisions collectively protect borrowers from abusive debt collection practices.

Republic Act No. 10175 (Cybercrime Prevention Act of 2012)
If the harassment and threats are made through digital means (e.g., social media, text messages, or online platforms), they may constitute cyber harassment or cyber libel under this law. Death threats sent electronically may lead to severe penalties under Section 6 of the Act, which imposes penalties one degree higher for crimes committed through ICT.
Republic Act No. 7394 (Consumer Act of the Philippines)
The Consumer Act protects consumers from abusive practices by lenders. Lending apps are often subject to this Act, particularly if their methods of collecting debts involve deceit, intimidation, or coercion.
Revised Penal Code (RPC)
The RPC criminalizes acts of harassment, intimidation, and death threats.
- Grave Threats (Article 282): Sending death threats can be prosecuted as grave threats, punishable by imprisonment.
- Light Threats (Article 283): Threatening harm, though less severe, is still a punishable offense.
- Unjust Vexation (Article 287): Persistent and unwarranted harassment may be classified as unjust vexation.
Data Privacy Act of 2012 (R.A. 10173)
The unauthorized disclosure or misuse of a borrower’s personal information (e.g., contacting family members or employers to humiliate the borrower) violates privacy laws. Data breaches by online lending apps can result in administrative and criminal liability.

2. Regulations by the Bangko Sentral ng Pilipinas (BSP)

The BSP Circular No. 1048 outlines the rules on fair debt collection. It prohibits banks, financial institutions, and their agents from engaging in the following:

Use of threats, obscenities, or insults.
Public humiliation or shaming.
Contacting individuals unrelated to the debt for purposes of coercion.

Violations can result in sanctions against the financial institution.

Actions Borrowers Can Take Against Harassment

1. Document the Incidents

Keep detailed records of every instance of harassment or threat:

Save text messages, emails, and screenshots of online harassment.
Record phone calls if legally permissible.
Note the dates, times, and content of verbal threats.

2. File a Police Report

For threats of harm or death, immediate protection from law enforcement is crucial. Visit your local police station and file a report, providing all evidence of the threats.

3. File a Complaint with the National Privacy Commission (NPC)

If the lending app misuses personal data or publicly shames the borrower, a complaint can be filed with the NPC under the Data Privacy Act.

4. Seek Assistance from the Department of Trade and Industry (DTI)

Borrowers harassed by online lending platforms may file complaints with the DTI, especially if the lender violates consumer protection laws.

5. Pursue Legal Action

Victims may file criminal charges for threats, harassment, or privacy violations. Legal actions could include:

Grave Threats: Filed under the Revised Penal Code.
Cyber Harassment: Filed under the Cybercrime Prevention Act.
Civil Case for Damages: Borrowers can sue for moral damages arising from emotional distress.

6. File a Complaint with the BSP

If the lender is a financial institution regulated by the BSP, file a complaint directly with the BSP for violations of fair debt collection rules.

Practical Tips for Borrowers

Communicate in Writing: When discussing payment arrangements, use written communication to document the lender’s responses.
Avoid Emotional Engagement: If harassed, do not retaliate with insults or threats. Stay calm and collect evidence.
Consult a Lawyer: Legal representation ensures that your rights are upheld and that you are guided through the proper legal processes.

Challenges and Counterarguments

1. Balancing Creditor Rights and Borrower Protections

Creditors may argue that stringent laws hamper their ability to collect debts. However, ethical collection practices ensure that borrowers are treated with dignity and respect.

2. Difficulty in Identifying Perpetrators

Online lending apps often outsource debt collection to third parties, complicating the identification of responsible individuals. Victims must rely on legal mechanisms to trace these actors through company records.

Examples and Precedents

Several cases in the Philippines highlight the misuse of power by lending apps:

NPC Crackdown (2021): The NPC penalized online lenders for shaming borrowers by contacting their family and friends.
BSP Sanctions (2022): Financial institutions engaging in unethical practices faced regulatory penalties.

Conclusion

Borrowers who face harassment and threats from online lending apps are not powerless. Philippine laws provide robust protections to ensure that debt collection practices are conducted fairly and within the bounds of the law. Victims should leverage their rights, seek assistance from regulatory bodies, and consult legal professionals to address such injustices effectively.