Dear Attorney,

I recently availed of a loan through an online lending app. However, I am now facing issues regarding privacy and harassment. The app has accessed my phone contacts and has started contacting people I know, disclosing my personal loan information and demanding payment. Additionally, I have received multiple threatening messages from the app's representatives, which is causing me stress and fear. Is this legal, and what can I do to protect myself?

Sincerely,
Concerned Borrower

Insights

Under Philippine law, the actions of the online loan app, particularly regarding privacy violations and harassment, raise significant legal concerns. Here's a breakdown of the relevant legal points:

Violation of Data Privacy Act of 2012:
The unauthorized access and use of your phone contacts by the lending app likely constitutes a violation of Republic Act No. 10173, known as the Data Privacy Act of 2012. This law protects individuals from unauthorized access, use, and dissemination of personal information. Lending apps must obtain clear and informed consent from users before accessing sensitive data, such as phone contacts. If the app did not provide transparency about this access or misused your data, they may be liable for violating the law.

To protect your rights, you can file a complaint with the National Privacy Commission (NPC), which has the mandate to enforce the Data Privacy Act. The NPC can investigate the app’s practices and impose penalties, including fines and other legal consequences, for any violations.
Harassment and Threats:
The harassment you’re experiencing, including threats and repeated messages from the loan app representatives, may fall under the scope of Unjust Vexation or Grave Threats, which are punishable under the Revised Penal Code of the Philippines. Lending companies are prohibited from using intimidating, threatening, or abusive tactics to collect debts. This form of harassment could also be a violation of Republic Act No. 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees, if it can be proven that app employees are acting under a company policy that encourages such behavior.

You can report this harassment to the authorities, such as the National Bureau of Investigation (NBI) or your local police, who may assist in investigating the matter. Additionally, the Securities and Exchange Commission (SEC) oversees lending companies and has penalized some for engaging in abusive debt collection practices. Filing a complaint with the SEC may help hold the lending app accountable for their actions.
Consumer Rights and Protections:
As a borrower, you are protected under the Consumer Act of the Philippines (Republic Act No. 7394), which safeguards the rights of consumers against fraudulent and deceptive practices. If the loan app failed to disclose essential terms, such as how they would handle your personal data or their debt collection processes, this could constitute a violation of your rights as a consumer. You have the option to seek assistance from the Department of Trade and Industry (DTI) or the SEC to address this concern.

What You Can Do:

File a complaint with the National Privacy Commission if you believe your data privacy rights were violated.
Report the harassment and threats to local authorities or the NBI for possible criminal charges.
Submit a complaint to the SEC if the lending app is engaging in unethical or unlawful collection practices.
Consult with a lawyer for a more detailed review of your case and assistance in taking the appropriate legal steps.

The actions of the online loan app are not only unethical but likely illegal. Taking swift action will help protect your rights and hold the lending company accountable.