Dear Attorney,

I hope this message finds you well. I am writing to seek legal guidance regarding a distressing matter involving persistent and harassing communication from a lending application I previously used. Despite my attempts to address the issue, they have continued to harass me relentlessly through calls, messages, and other means. This has caused significant stress and emotional distress.

I would like to know my legal options in addressing this issue and protecting myself from further harassment. Your expertise in this matter would be greatly appreciated, particularly in navigating the relevant laws and potential remedies under Philippine jurisdiction.

Sincerely,
A Concerned Borrower

Legal Remedies Against Harassment by Lending Apps in the Philippines

In recent years, the proliferation of online lending platforms in the Philippines has revolutionized access to credit. However, it has also given rise to alarming practices, including harassment of borrowers. This article explores the relevant laws and remedies available to individuals experiencing such misconduct, providing a comprehensive overview of borrower rights and the responsibilities of lending companies under Philippine law.

I. Legal Framework Governing Lending Practices

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

This law governs the registration and operation of lending companies in the Philippines. It mandates the registration of lending entities with the Securities and Exchange Commission (SEC) and requires compliance with fair practices in loan collection.

Key Provisions:
- Lending companies must disclose loan terms transparently.
- Collection practices must conform to fair and reasonable standards.

2. Financial Products and Services Consumer Protection Act (Republic Act No. 11765)

This law reinforces consumer protection by empowering regulatory bodies, including the SEC and the Bangko Sentral ng Pilipinas (BSP), to oversee financial service providers and address abusive practices.

Key Consumer Protections:
- The prohibition of unfair collection tactics.
- Safeguards against unauthorized data sharing.

3. The Data Privacy Act of 2012 (Republic Act No. 10173)

This law protects individuals against unauthorized access and use of personal data. Lending apps often breach this act by exploiting borrower contact lists or disseminating private information to coerce repayment.

II. Harassment in Debt Collection: Forms and Legal Violations

Harassment by lending apps can manifest in various forms, each of which may constitute legal violations:

1. Unauthorized Data Use

Some apps access borrowers' contact lists without consent, violating the Data Privacy Act. Lending companies often use this information to shame or pressure borrowers through third-party notifications.

2. Threatening or Abusive Behavior

Calls or messages containing threats, abusive language, or false accusations violate:

The Revised Penal Code (Articles 282 and 283): Threats of harm or false accusations may constitute grave threats or light threats.
RA 11765: Prohibits harassment, undue pressure, or intimidation in debt collection.

3. Public Shaming

The act of broadcasting a borrower’s debt status or contacting acquaintances to disclose such information can constitute:

Defamation (Article 358 of the Revised Penal Code): If false, it damages the reputation of the borrower.
Data Privacy Violations: Sharing personal data without authorization.

4. Overreach in Collection Tactics

Repeated calls or messages, particularly during unreasonable hours, can amount to psychological harassment, violating the principles of fair collection under RA 9474 and the consumer protection guidelines issued by the SEC.

III. Remedies for Harassment by Lending Apps

Borrowers subjected to harassment by lending apps may pursue the following remedies:

1. File a Complaint with the SEC

The SEC is the primary regulatory body overseeing lending companies. Complaints can address violations of RA 9474 and the SEC's Memorandum Circular No. 18, Series of 2019, which prohibits unfair collection practices.

Process:
- Submit a formal complaint detailing the harassment.
- Provide evidence such as screenshots, call logs, or affidavits.

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

Borrowers can report violations of the Data Privacy Act to the NPC, particularly if the lending app accessed unauthorized data or disclosed personal information.

Process:
- Submit evidence of data misuse or unauthorized sharing.
- Request an investigation and corrective measures.

3. Pursue Criminal Action

Harassment may lead to criminal liabilities under the Revised Penal Code for threats, coercion, or defamation.

Procedure:
- File a complaint with the local prosecutor’s office.
- Provide sufficient evidence to support the allegations.

4. Seek Civil Remedies

Borrowers can file civil cases for damages resulting from emotional distress, reputational harm, or data privacy violations. These actions may include claims for moral or exemplary damages under Article 19 of the Civil Code.

IV. Role of Regulatory Authorities

1. Securities and Exchange Commission

The SEC has actively pursued non-compliant lending apps, issuing cease-and-desist orders and revoking licenses for violators.

2. National Privacy Commission

The NPC enforces the Data Privacy Act, penalizing companies for unauthorized data use and ensuring the privacy rights of borrowers.

3. Local Law Enforcement

Police and prosecutors play a role in addressing criminal acts, such as threats or defamation, perpetrated by lending app representatives.

V. Practical Tips for Borrowers Facing Harassment

Document Evidence:
- Keep records of harassing calls, messages, and data disclosures.
- Save screenshots and audio recordings where possible.
Communicate Your Rights:
- Inform the lending app of your intent to file complaints with the SEC or NPC.
- Demand a halt to unauthorized communication.
Avoid Further Engagement:
- Limit direct contact with the lending app to reduce emotional distress.
- Use official channels to address disputes.
Seek Legal Assistance:
- Consult with an attorney for advice and representation in filing complaints or lawsuits.

VI. Legislative Developments and Advocacy

Efforts are ongoing to strengthen borrower protections. Legislators and consumer rights groups advocate for stricter penalties against abusive lending practices, including the closure of illegal lending platforms and the development of a borrower protection framework tailored to digital platforms.

VII. Conclusion

Borrowers have robust legal remedies against harassment by lending apps under Philippine law. The combination of regulatory oversight, criminal and civil liability, and consumer protection mechanisms provides a comprehensive framework to address and prevent abusive practices. However, enforcement remains a critical challenge, underscoring the importance of awareness and assertiveness among borrowers in asserting their rights.