Dear Attorney,

I’ve recently experienced harassment related to an online lending app. The problem is that I have no idea which app it was, and I haven’t received any money. How do I proceed in addressing this concern legally? Could you provide advice on what steps I can take to stop the harassment and protect myself?

Sincerely,
Concerned Individual

Insights

Legal Protection Against Online Harassment in the Philippines

Online harassment has become an increasingly relevant issue in the Philippines, especially with the rise of digital lending platforms. Borrowers are not only subjected to the usual pressures of repayment but also to abusive collection practices that violate consumer protection laws. This article explores the legal framework that protects individuals from online harassment in the country and offers insights into remedies available under Philippine law.

1. Understanding Online Harassment in Lending Apps

Harassment by online lending companies typically involves persistent calls, texts, emails, and sometimes even threats of legal action or public shaming. More concerning are incidents where debt collectors contact third parties, such as family members or colleagues, often without the borrower’s consent, to exert additional pressure.

These actions may involve violations of data privacy laws, consumer rights, and other legal statutes. In the Philippines, specific regulations are in place to protect individuals from such abusive practices. Even in cases where the individual has not taken out a loan, online harassment can occur due to mistaken identity or fraudulent use of personal information.

2. Key Laws and Regulations Against Online Harassment

The legal protection against online harassment in the Philippines is grounded in several key laws and regulations:

Republic Act No. 10175 (Cybercrime Prevention Act of 2012): This law criminalizes various forms of cybercrimes, including harassment conducted through digital means. Section 4(a)(3) of the law addresses cyber harassment, which includes any act that causes emotional distress through ICT.
Republic Act No. 10173 (Data Privacy Act of 2012): Under this law, unauthorized use or sharing of personal data by online lending companies constitutes a violation of privacy. In particular, lenders or collectors who improperly share or disclose personal information without the borrower’s consent may be subject to penalties.
Republic Act No. 7394 (Consumer Act of the Philippines): This law regulates abusive debt collection practices. It prohibits unfair, deceptive, and unconscionable acts or practices by any financial entity or their agents.
BSP Circular No. 1048 (Fair Debt Collection Practices): Issued by the Bangko Sentral ng Pilipinas (BSP), this circular provides guidelines for ethical debt collection practices. Collectors are prohibited from using threats, harassment, or making public the borrower’s debts to shame them into paying.

3. Steps to Address Online Harassment by Lending Apps

Victims of harassment from online lending platforms can take several legal steps to protect their rights:

Document the Harassment: Keep records of all communication from the online lending app, including text messages, emails, and screenshots of any social media harassment. This documentation will be crucial in filing a legal complaint.
File a Complaint with the National Privacy Commission (NPC): If the lending app has violated your privacy rights by unlawfully sharing your information or contacting third parties without consent, file a complaint with the NPC. The NPC is authorized to investigate and impose sanctions on entities that violate the Data Privacy Act.
Report to the Bangko Sentral ng Pilipinas (BSP): If the lending app is violating ethical debt collection guidelines as stipulated in BSP Circular No. 1048, report the matter to the BSP. The BSP can investigate the lending company and impose penalties for non-compliance.
Cybercrime Complaint: In cases where the harassment constitutes a cybercrime, such as online threats or stalking, victims can file a complaint with the Philippine National Police (PNP) or the National Bureau of Investigation (NBI) under the Cybercrime Prevention Act.
Seek Civil and Criminal Remedies: Individuals may also pursue civil damages against the lending app for emotional distress and harm caused by harassment. If the actions constitute a criminal offense under the Cybercrime Prevention Act or other relevant laws, the harassers may face criminal penalties, including imprisonment.

4. Consumer Protection and Lending Regulations

The rise of online lending apps has drawn regulatory attention due to the frequent abuse of consumer rights. The Securities and Exchange Commission (SEC) has issued cease-and-desist orders against several online lending apps found to have violated consumer protection laws. These companies were penalized for abusive collection practices, including harassment, unauthorized use of personal data, and deceptive lending terms.

If an online lending app is found to be operating without proper registration with the SEC, individuals can report the app to the SEC for investigation. The SEC can revoke the license of the offending company and impose fines.

5. Preventive Measures and Protecting Your Rights

To avoid falling victim to online harassment, consider the following preventive measures:

Be Cautious About Sharing Personal Information: Ensure that any personal information shared online is done so with trusted and verified entities. Before engaging with a lending app, research the company’s legitimacy and read reviews or complaints from previous users.
Opt Out of Unauthorized Communication: If you begin receiving unsolicited messages or calls from an online lender, exercise your right to opt out of communication. The Data Privacy Act allows individuals to withdraw consent for further use of their data by third parties.
Seek Legal Counsel: If the harassment escalates or legal complexities arise, consulting a lawyer experienced in data privacy, cybercrime, or consumer protection laws is essential to ensure your rights are safeguarded and the harassment is addressed promptly.

6. Conclusion

Online harassment by lending apps violates several laws in the Philippines, ranging from the Data Privacy Act to specific debt collection regulations issued by the BSP. Individuals who experience such harassment have the right to file complaints with various authorities, such as the NPC, BSP, and SEC, and seek remedies under the Cybercrime Prevention Act and other consumer protection laws.

Taking proactive steps, such as documenting harassment and reporting the issue to the appropriate authorities, can protect individuals from ongoing abuse and hold violators accountable under Philippine law. Legal measures are in place to defend the rights of consumers and ensure that their privacy and well-being are protected in the digital age.