Dear Attorney,
I am seeking legal advice regarding an issue I am facing with an online lending platform. Recently, I took out a loan, but I was shocked to see that they are charging an interest rate of approximately 66%, to be repaid within 10 days. I find this interest rate exorbitant and almost impossible to pay back on time.
Moreover, the lender has been harassing me through threatening messages, claiming that they will expose me on social media if I don’t make the payment immediately. This behavior is extremely distressing, and I believe it may violate my rights as a borrower. Could you please advise me on the legal actions I can take to protect myself from this harassment and whether the interest rate they are imposing is lawful?
Sincerely,
A Concerned Borrower
Insights
In the Philippines, the actions you’ve described raise serious legal concerns regarding unfair debt collection practices and predatory lending. Under Republic Act No. 7394, also known as the Consumer Act of the Philippines, lenders are required to act within fair and reasonable bounds when collecting debts. Harassment, threats, and shaming borrowers—especially by threatening to expose their situation on social media—may constitute violations of laws against cyber harassment and libel under the Cybercrime Prevention Act of 2012 (Republic Act No. 10175). Such actions can also infringe on the borrower’s rights to privacy.
The Bangko Sentral ng Pilipinas (BSP), through its regulations, mandates that lenders must ensure transparent and fair terms, including the interest rates. A 66% interest rate, particularly for a short-term loan of 10 days, is alarmingly high and may fall under usurious lending, depending on the terms and exact nature of the loan. Usury laws, although modified, still guide the reasonableness of interest rates. Lending companies and platforms must comply with fair lending practices as established by the BSP, which includes full disclosure of interest rates and other charges.
If you feel that the lender’s actions are unlawful, you can file a formal complaint with the Securities and Exchange Commission (SEC), which regulates lending companies. It is also possible to report them to the National Privacy Commission (NPC) for privacy violations, particularly for the threats involving social media exposure.
As a next step, you may want to formally notify the lender, in writing, that you are aware of your rights and the illegality of their actions, requesting them to cease the harassment immediately. Additionally, you may pursue legal recourse by filing complaints with the appropriate regulatory bodies and, if necessary, seek the intervention of the courts for violations of your rights.