Letter to a Lawyer

Dear Attorney,

I hope this letter finds you well. I am reaching out to seek legal guidance regarding a distressing situation I am currently facing. I have been subjected to harassment by a lending app due to my inability to make a timely payment. The harassment has escalated to a point where it has reached my workplace and is now affecting my employment. There are indications that I might lose my job due to this situation, which is causing me immense stress and anxiety.

I would like to understand my rights in this matter and the possible legal remedies available to me. I am particularly concerned about how I can address the harassment and protect my reputation and employment. Additionally, I wish to know the legal obligations and limits of lending apps in the Philippines regarding debt collection and privacy.

I hope you can provide detailed advice on the matter, as well as any steps I should take moving forward. Thank you for your assistance.

Sincerely,
A Concerned Employee

Legal Remedies for Harassment by Lending Apps and Workplace Repercussions in the Philippines

Introduction

The rapid growth of financial technology (fintech) in the Philippines has increased access to lending services. However, this convenience has also led to abuses, particularly in debt collection practices. The harassment of borrowers by some lending companies, especially app-based lenders, has become a pressing concern. When such harassment reaches a borrower’s workplace, causing potential damage to their professional reputation and employment, it raises significant legal and ethical issues.

This article discusses the rights of borrowers under Philippine law, the obligations of lending companies, the legal remedies available for harassment, and considerations for protecting one’s employment in such situations.

1. Borrower Rights and Data Privacy Laws

A. Rights of Borrowers under Republic Act No. 10173 (Data Privacy Act of 2012)

The Data Privacy Act of 2012 (DPA) aims to protect the privacy of individuals and ensure the lawful processing of personal data. Lending companies that misuse borrower information for harassment purposes may violate several provisions of the DPA:

Consent Requirement: Lending apps must obtain the borrower’s explicit consent before processing or sharing personal data.
Purpose Limitation: Data collected by lenders should only be used for legitimate purposes, such as evaluating creditworthiness or contacting borrowers for repayment reminders.
Prohibition of Unauthorized Disclosure: Disclosing personal information to unauthorized parties, such as employers, friends, or colleagues, without consent, constitutes a breach of privacy.
Right to Rectification and Erasure: Borrowers have the right to correct or request the deletion of inaccurate, incomplete, or outdated data.

The National Privacy Commission (NPC) enforces the DPA. Borrowers who experience harassment involving their data may file a complaint with the NPC.

B. Consumer Protection under Republic Act No. 7394 (Consumer Act of the Philippines)

The Consumer Act protects consumers from abusive practices. Lending apps engaging in harassing behavior may be liable under the law for using unfair, unconscionable, or deceptive practices to collect debts.

C. Protections under Bangko Sentral ng Pilipinas (BSP) Circular No. 1048

BSP Circular No. 1048, series of 2019, outlines guidelines on debt collection practices for financial institutions. It mandates that collection practices must adhere to the following principles:

Prohibition of Harassment: Lenders must avoid using threats, obscene language, or abusive communication.
Restricted Disclosure: Borrowers’ debts should not be disclosed to unauthorized third parties, including employers or colleagues.
Respect for Privacy: Collectors must respect the borrower’s right to privacy in all communications.

Lending companies that violate these guidelines may face administrative sanctions from the BSP.

2. Legal Recourse for Harassment

A. Filing a Complaint with the National Privacy Commission (NPC)

Borrowers who believe their privacy rights have been violated may file a complaint with the NPC. The process includes:

Submitting a written complaint detailing the nature of the violation.
Providing evidence, such as screenshots of harassing messages or proof of unauthorized disclosures.
Participating in mediation or hearings as required by the NPC.

The NPC may impose penalties on offending entities, including fines and corrective measures.

B. Criminal Complaints for Grave Coercion or Threats

Under the Revised Penal Code, harassing behavior may constitute crimes such as grave coercion (Article 286) or threats (Articles 282-283). Borrowers can file criminal complaints with the police or the Office of the City Prosecutor.

C. Civil Action for Damages

Borrowers may pursue a civil case for damages under Article 19 and Article 26 of the Civil Code of the Philippines, which protect individuals from abuses of rights and interference with privacy. Damages may include compensation for emotional distress, reputational harm, and lost employment opportunities.

3. Workplace Repercussions

A. Employer Obligations

Employers are generally prohibited from discriminating or taking adverse action against employees based on personal financial difficulties. If an employer terminates or penalizes an employee solely due to debt-related harassment, it may constitute illegal dismissal or unfair labor practice under the Labor Code of the Philippines.

B. Remedies for Workplace Issues

Filing a Labor Complaint: Employees may file a complaint with the National Labor Relations Commission (NLRC) if they believe they were unfairly terminated or discriminated against.
Seeking Legal Protection: Borrowers can request their employer’s assistance in preventing lending companies from contacting the workplace. Employers may issue a cease-and-desist letter to the offending lender.

4. Practical Steps for Borrowers

A. Documenting Harassment

Borrowers should keep a record of all instances of harassment, including:

Screenshots of messages or calls.
Written records of incidents involving workplace contact.
Testimonies from colleagues or employers.

B. Communicating with the Lending Company

Borrowers may send a formal demand letter to the lending app, citing applicable laws and requesting an end to the harassment. The letter should include:

A summary of the harassment.
Reference to legal provisions violated.
A request for an amicable resolution.

C. Seeking Assistance from Government Agencies

Government bodies that may assist borrowers include:

National Privacy Commission (NPC): For data privacy violations.
Bangko Sentral ng Pilipinas (BSP): For violations of debt collection guidelines.
Department of Labor and Employment (DOLE): For workplace-related complaints.

Conclusion

Borrowers subjected to harassment by lending apps and its impact on their employment have multiple legal remedies under Philippine law. By understanding their rights and seeking assistance from relevant authorities, they can address these issues effectively. It is crucial to act promptly and maintain detailed documentation to strengthen one’s case.

For individuals facing such situations, consulting a qualified attorney ensures the best possible outcome. An attorney can guide borrowers through the complaint process, represent them in legal proceedings, and negotiate with employers to safeguard their professional standing.