Online Loan Harassment Philippines

Dear Attorney,

I am writing to seek legal advice regarding a situation where I have been experiencing harassment from an online lending company. They have been sending threatening messages and even contacting people in my phonebook. This has caused me great distress. Is there any legal action I can take to stop them, and are there any laws protecting me from such harassment?

Sincerely,
Concerned Borrower

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Insights

In the Philippines, debt collection, including from online loan companies, is governed by several laws designed to protect the borrower’s rights against harassment and abuse.

Debt Collection Harassment
The primary law that addresses debt collection practices in the Philippines is the Republic Act No. 10173, or the Data Privacy Act of 2012. According to this law, lending companies are prohibited from disclosing a borrower’s personal information without their consent. This includes contacting people in the borrower’s phonebook, which is considered a breach of privacy.

Furthermore, the Revised Penal Code under Grave Coercion (Article 286) may be applicable if a lender is forcing a borrower through violence or intimidation to perform an act that is illegal or unjust, such as making threats to one’s reputation.

Prohibited Acts by Lending Companies
In 2019, the National Privacy Commission (NPC) released a ruling against online lending apps for their unlawful methods of debt collection. This ruling emphasized that lenders must follow strict guidelines to avoid committing privacy violations or abusive collection practices. Acts such as calling a borrower’s employer, family members, or friends to inform them of the debt are strictly prohibited unless consent is given. Any such act without permission could be grounds for filing a complaint with the NPC.

Available Legal Remedies
If you have been a victim of online loan harassment, you can take the following steps:

1. File a complaint with the NPC
   Borrowers whose data has been mishandled can lodge a formal complaint with the NPC. The commission will investigate privacy violations and could impose penalties on the offending lender.

2. Seek Protection from Authorities
   If threats, intimidation, or harassment are involved, the borrower can file a complaint with local authorities or the police. The Anti-Cybercrime Unit of the Philippine National Police (PNP) can assist in cases involving online threats or harassment.

3. Civil Action
   Borrowers may also opt to file a civil case against the lending company for damages. This is especially relevant in cases where harassment has caused significant emotional distress or reputational harm.

Conclusion
Borrowers in the Philippines are protected from harassment and unlawful practices by debt collectors, including online loan companies. Legal options are available, and consulting a lawyer is advisable to assess the best course of action in each unique case.