Dear Attorney,

I need your legal advice regarding an issue I have with online lending apps. After borrowing money from certain online lenders, one of them threatened to post my ID and picture online if I fail to repay on time. The interest rates are extremely high, and the loan terms are short. What should I do to protect myself from these threats and address the excessive interest rates?

Concerned Borrower

Insights

In the Philippines, harassment and unethical practices by online lending companies are serious concerns. Lenders resorting to threats, such as disclosing personal information like IDs and photos, may be in violation of laws concerning data privacy and lending practices. Here are key legal concepts that apply:

Data Privacy Act of 2012 (Republic Act No. 10173)
Online lenders threatening to expose personal information may violate the Data Privacy Act. This law ensures the right to privacy, particularly regarding sensitive personal information like photos, government-issued IDs, and other identifiable data. Under the Act, lenders cannot disclose personal information without the borrower's explicit consent. A violation of the law can lead to penalties, including imprisonment and fines.
Cybercrime Prevention Act of 2012 (Republic Act No. 10175)
Threatening to post private information online can also constitute cyber harassment or cyber libel under the Cybercrime Prevention Act. This law penalizes acts involving unauthorized disclosure of personal data and harassment over digital platforms.
Anti-Usury Law (Act No. 2655)
Although the Anti-Usury Law has largely been liberalized in the Philippines, with interest rates generally left to market forces, the Bangko Sentral ng Pilipinas (BSP) has set guidelines on excessive interest rates for lending institutions. If the interest rates charged by online lending companies are excessively high or unconscionable, you may seek redress by filing a complaint with the BSP or pursuing legal action under existing consumer protection laws.
Lending Company Regulation Act of 2007 (Republic Act No. 9474)
Lenders in the Philippines are regulated under the Lending Company Regulation Act. Any registered lending company must comply with lawful practices regarding interest rates and debt collection. Moreover, lending companies must be registered with the Securities and Exchange Commission (SEC), which has the authority to investigate unlawful lending practices, including harassment and excessive interest rates.

Remedy for Borrowers
If you find yourself harassed by an online lender, you may consider the following steps:

Report to the NPC (National Privacy Commission): File a formal complaint with the NPC if your personal data is threatened with unlawful exposure.
Seek SEC Assistance: If the lender is not complying with regulations, you may file a complaint with the SEC regarding their conduct and lending practices.
Consult a Lawyer: Legal counsel can help protect your rights and represent you in filing the appropriate cases, including civil or criminal actions against the lender.