Within the Philippines, regulatory oversight concerning unfair collection practices is predominantly overseen by two key agencies: the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC).
The BSP exercises its regulatory authority over banks, credit card companies, and their associated collection agencies. Under the purview of BSP Circular No. 454 Series of 2004, stringent guidelines are set forth to deter any form of unscrupulous behavior within the collection process. This circular expressly prohibits institutions from partaking in a range of unethical practices, including but not limited to issuing threats, resorting to verbal abuse, or making contact with debtors outside of reasonable hours, typically defined as before 6:00 a.m. or after 10:00 p.m.
Similarly, the SEC plays a pivotal role in overseeing financing companies (FCs) and lending companies (LCs) to ensure fair and transparent lending practices. In 2019, the SEC introduced Memorandum Circular No. 18, which outlines a comprehensive framework aimed at curbing unfair collection practices within the financing sector. Notably, the prohibited behaviors delineated within SEC MC 18 mirror those outlined in BSP Circular No. 454, thereby reinforcing a unified stance against unethical collection methodologies across both banking and financing spheres.
These regulatory measures serve to uphold the integrity of the financial landscape in the Philippines, safeguarding the rights and interests of both creditors and debtors alike. By establishing clear guidelines and enforcing compliance, the BSP and SEC play vital roles in fostering a culture of accountability and fairness within the realm of debt collection.
