Dear Attorney,

I am writing to seek your legal advice regarding an alarming situation involving harassment from online lending platforms. Recently, I availed of a loan from an app-based lender, but due to unforeseen circumstances, I have been unable to pay on time. Since then, I have been subjected to threatening text messages and calls. They have claimed they will post my personal information and photos on social media, and I am deeply concerned about this.

I would like to understand my legal rights under Philippine law in this situation. Are these practices legal? What recourse do I have to protect my privacy and dignity? I am willing to take legal action, but I need your guidance on the steps I can take.

Sincerely,
Concerned Borrower

Legal Remedies for Harassment by Online Lending Platforms: Understanding Philippine Law

The rise of app-based and online lending platforms has introduced convenience for borrowers but has also given rise to abusive practices by some operators. This legal article seeks to address the rights and remedies available to borrowers in the Philippines who experience harassment, threats, or public shaming from online lenders.

Applicable Laws and Regulations

The Philippine legal system provides comprehensive protections for borrowers under several laws and regulations:

1. Republic Act No. 10173 or the Data Privacy Act of 2012

The Data Privacy Act protects individuals from the unauthorized use or dissemination of their personal information. It covers all personal data processing, particularly those involving sensitive personal information.

Key provisions include:

Right to Privacy: Borrowers have the right to expect that their personal data, including photographs and contact details, will not be disclosed without consent.
Prohibited Actions: Online lending platforms may violate this law if they:
- Disclose personal information publicly without consent.
- Threaten to post such information on social media.
- Share borrower information with third parties for harassment purposes.
Penalties: Violators may face imprisonment of up to six years or fines ranging from PHP 500,000 to PHP 4,000,000.

2. Republic Act No. 7394 or the Consumer Act of the Philippines

This law ensures that consumers, including borrowers, are treated fairly. The harassment or use of threats by lending platforms is a clear violation of consumer rights. Borrowers may file complaints with the Department of Trade and Industry (DTI) or other relevant agencies.

3. BSP Circular No. 1133, Series of 2021

The Bangko Sentral ng Pilipinas (BSP) specifically regulates lending practices to curb harassment. Circular 1133 mandates:

Lending platforms must adhere to ethical collection practices.
Debt collection must not involve threats, abuse, or public shaming.
Violations may lead to administrative sanctions, suspension, or revocation of licenses.

4. Revised Penal Code (RPC) - Articles on Libel and Threats

If a lending platform publicly posts or threatens to post defamatory content, they may also be liable under the Revised Penal Code:

Libel (Article 353): Publicly shaming borrowers through online posts constitutes libel, punishable by imprisonment or fines.
Grave Threats (Article 282): Sending threatening text messages or calls with malicious intent is a criminal act.

Common Abusive Practices and Legal Implications

Online lending platforms are notorious for the following actions, all of which may violate Philippine laws:

Public Shaming via Social Media
- Threats to post photos or personal information online are clear violations of the Data Privacy Act and libel provisions under the RPC.
- Borrowers may file complaints with the National Privacy Commission (NPC) or file a libel case with the courts.
Harassment Through Text or Call
- Constant calls or threatening messages may constitute grave threats or unjust vexation under the RPC.
- Borrowers can report these incidents to local law enforcement or the National Bureau of Investigation (NBI) Cybercrime Division.
Third-Party Harassment
- Contacting a borrower’s relatives, friends, or colleagues without permission breaches the Data Privacy Act. This action can also lead to reputational damage claims.
Exorbitant Interest Rates
- While not directly related to harassment, lending platforms with usurious interest rates may be violating laws on fair lending practices.

Steps Borrowers Can Take

If you are facing harassment from an online lending platform, consider the following actions:

1. Document All Harassment

Keep a record of all messages, calls, and screenshots of online posts.
Note the date, time, and content of each harassment attempt.

2. File a Complaint with the National Privacy Commission (NPC)

Submit evidence of data privacy violations through the NPC's online portal or office.
The NPC may investigate and impose penalties on the violator.

3. Report to Law Enforcement

For threats or libel, file a complaint with the Philippine National Police (PNP) or NBI Cybercrime Division.
Provide documented evidence of harassment.

4. File a Complaint with the Securities and Exchange Commission (SEC)

If the lending platform is registered, the SEC can investigate their practices. Unregistered operators may face administrative and criminal charges.

5. Seek Legal Representation

Engage a lawyer to assist in filing a civil case for damages or a criminal case for violations of the Revised Penal Code.

6. Inform the Bangko Sentral ng Pilipinas (BSP)

Report unethical collection practices to the BSP. This step is particularly effective for regulated lending institutions.

Potential Outcomes

Victims of harassment by online lending platforms may achieve the following through legal action:

Cease and Desist Orders: Courts or regulatory bodies may order the platform to stop harassment and remove defamatory posts.
Compensation for Damages: Borrowers may claim damages for emotional distress and reputational harm.
Penalties for Violators: Lending platforms found guilty of violations may face hefty fines or license revocation.

Preventive Measures for Borrowers

While these remedies provide relief, borrowers should also adopt preventive measures to avoid falling victim to abusive practices:

Research Lending Platforms: Check the SEC's list of registered online lenders before availing of loans.
Understand Loan Terms: Be wary of hidden charges and exorbitant interest rates.
Limit Personal Data Sharing: Provide only necessary information and avoid granting permissions that allow access to contacts or social media accounts.

Conclusion

Harassment by online lending platforms is a serious issue that undermines the dignity and rights of borrowers. Philippine laws provide robust protections, and borrowers should not hesitate to assert their rights. If you are a victim, document every instance of abuse and seek legal counsel to pursue the appropriate remedies. With the help of regulatory agencies and the justice system, abusive practices by these platforms can be curbed effectively.