Online Lending Harassment: When Is It Illegal in the Philippines?
In the age of convenience, many Filipinos turn to online lending apps (OLAs) for fast cash. While digital finance has provided an accessible alternative to traditional banking, it has also bred a new problem: harassment and public shaming by online lenders.
In recent years, stories of borrowers being humiliated in group chats, threatened with fabricated legal charges, or exposed to their employers, neighbors, and even minor children have become alarmingly common. The question is: Are these collection practices legal? The answer is often no—and you may have legal remedies.
Online Lending: Where It Goes Too Far
Online lending apps typically ask borrowers to grant access to contacts, photos, or other phone data as a condition for use. Many users don’t realize this until a payment is delayed and the harassment begins.
Common abusive tactics include:
Sending messages to people in your phonebook calling you a “scammer”
Posting your photo or debt details on social media
Threatening police arrest (even without a court case)
Repeatedly calling your employer or coworkers
Using fake legal notices to intimidate
Such practices are not just unethical—they may be criminal under Philippine law.
When Harassment Becomes a Crime
Several laws protect borrowers from abusive collection methods, including:
1. Data Privacy Act of 2012 (RA 10173)
Online lending apps that collect and misuse your contact list without informed, specific, and freely given consent may be liable for unauthorized processing of personal data. Borrowers may file a complaint with the National Privacy Commission (NPC).
2. Cybercrime Prevention Act of 2012 (RA 10175)
When a lender posts defamatory content online, it may qualify as cyber libel. Sending repeated threats, insults, or public shaming via messaging apps may also be prosecuted as online harassment.
3. Revised Penal Code
Unjust Vexation (Art. 287): constant annoyance or psychological torment
Grave Threats (Art. 282): using fear to compel payment
Intriguing Against Honor (Art. 364): spreading damaging gossip
4. BSP & SEC Regulations
In 2022, the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) cracked down on OLAs that fail to comply with ethical and legal standards. Only registered entities may engage in lending, and even they must follow fair collection rules.
What to Do if You’re a Victim
If you’ve been harassed by a lending app, here’s how you can legally respond:
Gather evidence – screenshots, call logs, audio recordings, and any posted materials
Report to the NPC – if your personal data or contacts were misused
File a complaint with the SEC – if the lender is unregistered or abusive
Go to the police or NBI – for criminal cases like grave threats or cyber libel
Consult a lawyer – to assess your legal options or send a formal cease-and-desist letter
Important: Debts Must Still Be Paid
Harassment is illegal—but so is willfully evading debt. While borrowers remain financially liable, they cannot be subjected to illegal, abusive, or publicly humiliating tactics. Lenders must file civil cases if they want to enforce collection properly.
No legitimate debt collection includes threats, blackmail, or public shame.
Final Word
Just because you owe money doesn’t mean you’ve lost your dignity. Know your rights. Document the abuse. And fight back legally.
If you’re being harassed by an online lending app, Cuchapin Law can assist in filing privacy complaints, criminal charges, and civil claims.