Dear Attorney,

I have recently encountered an issue with an online lending app. They have been harassing me through continuous calls, messages, and even contacting people in my phone directory, which I never consented to. I would like to explore filing a legal complaint against them. How do I proceed, and what steps should I take to protect myself legally?

Concerned Borrower

Insights

Online lending applications in the Philippines have been under scrutiny due to complaints about harassment and improper collection practices. Borrowers are often subjected to threatening behavior, privacy violations, and unethical tactics by some online lending platforms. Filing a legal case against such entities is an option available to consumers under Philippine law.

Data Privacy Act Violations
Many online lending apps engage in unlawful practices like accessing the borrower’s contact list without permission. Under Republic Act No. 10173, or the Data Privacy Act of 2012, lending apps cannot collect or process personal data beyond what is necessary for loan processing without express consent. Borrowers can file complaints with the National Privacy Commission (NPC) if their privacy rights are violated.
Harassment and Unfair Debt Collection
The revised rules on debt collection in the Philippines, as enforced by the Securities and Exchange Commission (SEC), prohibit any form of abusive debt collection practices, such as using threats or defamatory methods. If a borrower is subjected to such behavior, they can file a complaint with the SEC against the lending company for violations of the Lending Company Regulation Act (R.A. 9474).
Filing a Formal Complaint
Borrowers may file complaints with the following authorities depending on the nature of the violation:
- National Privacy Commission (NPC): For privacy violations (e.g., unauthorized access to contacts).
- Securities and Exchange Commission (SEC): For lending companies operating without proper registration or engaging in unfair collection practices.
- Local courts: If the borrower seeks compensation for damages, harassment, or other legal remedies.
Documentation is Key
Borrowers should keep all records of communications, including messages, emails, or calls from the lending company. This evidence will support their claims when filing a complaint with authorities or courts.

Taking legal action against online lending apps in the Philippines is a viable route for borrowers who have experienced harassment or data privacy violations. However, it is essential to consult a legal professional to understand the specifics of the case and ensure that proper procedures are followed.