Public Disclosure Threat for Non-Payment of Loan Fees: Legal Guidance Needed

Dear Attorney,

I am facing a distressing situation involving a lending company that approved a loan for me. Due to an error in my bank account number, I was unable to withdraw the approved loan amount. The company then requested a payment of PHP 50,000 to correct this mistake, which I paid. However, I was still unable to withdraw the loan and was subsequently asked to pay an additional PHP 70,000 for an OTP (One-Time Password) fee.

I am currently unable to pay this additional amount, and the company has started sending me numerous messages, demanding payment within a very short timeframe. They have threatened to publicly disclose my personal information and pictures if I fail to pay. I did not withdraw any loan amount, yet I am being harassed and threatened. I need urgent advice on how to proceed in this situation.

Sincerely,
A Concerned Borrower

Insights

The situation you are describing appears to be deeply concerning and potentially illegal under Philippine law. Here are some key insights:

1. Data Privacy Violations: The lending company's threat to publicly disclose your personal information and pictures may violate the Data Privacy Act of 2012 (Republic Act No. 10173). The law protects individuals from unauthorized use and disclosure of their personal data. If the company proceeds with their threat, they could be held liable for severe penalties, including imprisonment and fines.

2. Unfair Debt Collection Practices: The actions of the lending company might also constitute a violation of the rules against unfair collection practices. Under the Lending Company Regulation Act of 2007 (Republic Act No. 9474) and the rules set by the Securities and Exchange Commission (SEC), lending companies are prohibited from using threats, harassment, or any other form of coercion to collect debts. Public shaming, especially through the unauthorized publication of personal information, is considered an abusive practice.

3. Legal Recourse: You may file a complaint with the National Privacy Commission (NPC) regarding the data privacy violation. Additionally, you can report the lending company to the SEC for engaging in unfair debt collection practices. Both agencies have the authority to investigate and impose sanctions on companies that violate the law.

4. Immediate Action: It is advisable to cease any communication with the lending company through non-official channels. Gather all documentation, including messages and receipts of payments made, and consult a lawyer to assist you in filing the appropriate complaints. You should also consider reporting the situation to your local police if the harassment continues.

5. Consumer Protection: The Department of Trade and Industry (DTI) and other consumer protection agencies in the Philippines can also offer guidance and support in cases like this. These agencies are tasked with protecting consumers from fraudulent and abusive practices.

Taking these steps will help you protect your rights and hold the lending company accountable for their actions. Remember, the law is on your side, and you do not have to tolerate such unethical behavior.