Dear Attorney,

I am receiving threatening messages from an online loan app regarding a past due loan. I want to know what actions I can take to report this harassment. Can these online lenders send such threatening messages? What legal protections do I have?

Thank you,
Worried Borrower

Insights

Debt Collection Harassment in the Philippines

In the Philippines, the practice of debt collection is subject to regulations to protect borrowers from abusive and unfair methods by creditors. Republic Act No. 10173, or the "Data Privacy Act of 2012" (DPA), and its corresponding guidelines issued by the National Privacy Commission (NPC), play a significant role in safeguarding individuals from illegal debt collection practices, including harassment by online lending apps.

Prohibited Practices Under the Law

Lenders are prohibited from using abusive, harassing, or threatening methods to collect payments. Specifically, they are not allowed to:

Threaten harm or violence - Lenders cannot use threats of harm to a person, family, or property to intimidate the borrower.
Publish names of delinquent borrowers - Publishing or shaming borrowers, such as through social media or public forums, is illegal. This can be considered a violation of privacy rights.
Unlawful access and disclosure of personal information - Lending apps should only collect and process personal information in compliance with the DPA. Unauthorized sharing of personal data, such as phone numbers or contact details, without consent, violates the borrower’s privacy rights.

Penalties for Debt Collection Harassment

Debt collection agencies or lending companies that engage in harassment, including sending threatening or intimidating messages, can be held accountable under the law. Violations of the DPA can lead to administrative penalties from the NPC, such as fines, as well as criminal prosecution for severe offenses, leading to imprisonment or substantial fines.

How to Address Debt Harassment

If you are a borrower facing harassment from online lenders, you have several legal options:

File a complaint with the NPC - The NPC allows individuals to file complaints for violations of the DPA, such as unauthorized data processing or harassment through communication.
Contact law enforcement - If the harassment escalates to threats of harm or violence, you can report these actions to local authorities as it may fall under crimes punishable under the Revised Penal Code, such as grave threats.
Consult a lawyer - Seeking legal assistance is crucial in determining the most appropriate legal recourse, especially if harassment persists.

Conclusion

Debt collection is a legitimate process, but borrowers have legal protections against abusive practices. In the Philippines, lenders must adhere to the rules outlined under the Data Privacy Act and related regulations. Borrowers facing harassment can seek legal recourse to stop these actions and hold violators accountable.