Dear Attorney,

I have been experiencing online harassment from an online lending application. They are repeatedly sending me messages, calling me, and even contacting people from my contact list without my consent. This has caused me a lot of stress, and I feel like my privacy is being violated. Can I take legal action against them for harassment, and if so, what steps should I take?

Sincerely,
A Concerned Borrower

Insights

Online harassment in the context of online lending applications in the Philippines is a growing concern that falls under various laws that protect consumers, as well as laws regarding privacy and cybersecurity. Here are the legal considerations regarding online harassment and possible remedies under Philippine law:

1. Harassment and Defamation in the Philippines Online harassment is considered a violation of various laws in the Philippines. Harassment can take many forms, including unsolicited calls, messages, and the unauthorized sharing of personal information. In cases where the harassment comes from debt collectors or lending companies, this can become a legal issue of abusive debt collection practices.

Under Republic Act No. 10175, also known as the Cybercrime Prevention Act of 2012, online harassment, cyberstalking, and the unlawful disclosure of personal information are punishable acts. Any act that inflicts harm or causes distress through digital means can be subject to criminal and civil liabilities.

Additionally, if the harassment includes defamatory statements, these actions could also be considered under Article 353 of the Revised Penal Code, which defines libel as the “public and malicious imputation of a crime, or of a vice or defect, real or imaginary, or any act, omission, condition, status or circumstance tending to cause the dishonor, discredit, or contempt of a natural or juridical person.” Online libel is punishable under the same Cybercrime Law.

2. Unauthorized Disclosure of Personal Data One of the main complaints from borrowers harassed by lending applications is the unauthorized access to and disclosure of their contacts and personal information. Lending applications may have access to a user’s phone contacts, but disclosing this information to third parties without consent can be considered a violation of privacy.

This falls under Republic Act No. 10173, known as the Data Privacy Act of 2012. The law provides that personal information should not be disclosed without the explicit consent of the data subject, and individuals have the right to file complaints with the National Privacy Commission (NPC) if their data is misused or shared without permission.

Under Section 25 of the Data Privacy Act, any person who willfully discloses personal information without consent can be held liable for unauthorized processing of personal information. Companies found guilty of violating this law could face severe penalties, including fines and imprisonment, depending on the severity of the violation.

3. Protection Against Abusive Debt Collection Practices There are specific protections against harassment from debt collectors under existing regulations. In particular, the BSP Circular No. 1048 (issued by the Bangko Sentral ng Pilipinas) emphasizes the need for financial institutions and lending companies to adopt responsible debt collection practices. It prohibits lending institutions from using threats, harassment, and abusive language in their collection efforts. Furthermore, the circular mandates financial institutions to respect the borrower’s right to privacy and confidentiality of their personal data.

Similarly, the Lending Company Regulation Act of 2007 (Republic Act No. 9474) also requires lending companies to engage in fair and transparent practices. Section 19 of this Act states that lending companies should not resort to any form of harassment or use abusive tactics in collecting payments.

4. Remedies and Legal Recourse If an individual is experiencing harassment from an online lending application, the following legal actions can be taken:

Filing a Complaint with the National Privacy Commission (NPC): If personal information has been shared without consent or used in an unauthorized manner, a complaint can be lodged with the NPC. The NPC has the authority to investigate breaches of the Data Privacy Act and penalize the violators.
Filing a Cybercrime Complaint: Under the Cybercrime Prevention Act, victims of online harassment can file complaints with the Cybercrime Division of the Philippine National Police (PNP) or the National Bureau of Investigation (NBI). If the harassment includes defamatory content, an individual may file a criminal complaint for cyber libel as well.
Civil Claims for Damages: A victim of harassment or defamation can also file a civil case for damages. Article 26 of the Civil Code of the Philippines provides that every person shall respect the dignity, personality, privacy, and peace of mind of others. Any act that offends these rights may entitle the aggrieved party to compensation for moral damages.
Administrative Complaint: If the lending company is registered with the Securities and Exchange Commission (SEC), a borrower may also file a formal complaint with the SEC for violations of the Lending Company Regulation Act, as well as for engaging in abusive or deceptive practices.

5. Potential Penalties for Violators Lending companies and individuals found guilty of harassment, unauthorized disclosure of data, or other violations of the above laws can face both civil and criminal penalties. For instance:

Under the Data Privacy Act, fines can range from PHP 500,000 to PHP 5 million, and violators may face imprisonment for up to six years, depending on the nature of the offense.
Under the Cybercrime Prevention Act, online libel and harassment can result in fines and imprisonment of up to 12 years.
Civil cases may result in the awarding of actual, moral, and exemplary damages to the victim, depending on the circumstances of the case.

6. Best Practices for Borrowers Borrowers who feel they are being harassed should document every instance of the harassment, including saving all messages, screenshots, and call logs. These pieces of evidence will be crucial in filing formal complaints with the proper authorities.

Additionally, borrowers should be mindful of the permissions they grant to lending applications. It is advisable to read and understand the terms and conditions, particularly the data privacy policies of these platforms. If an app requires unnecessary permissions (such as access to contact lists), consider whether such an app should be used at all.

7. Conclusion Victims of online harassment from lending companies have multiple legal avenues available to protect their rights and privacy. Whether through the NPC, the courts, or the SEC, the Philippine legal system provides substantial protections for consumers against abusive practices. The laws on data privacy, cybercrime, and fair debt collection aim to balance the rights of creditors to recover debts with the need to protect borrowers from harassment and unlawful conduct.