Can a collecting agent contact the persons in the borrower’s contact list if the borrower gave consent?

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According to Securities and Exchange Commission (SEC) Memorandum Circular 18, even if a borrower has provided consent, it is prohibited for collecting agents to contact individuals listed in the borrower’s contact list, with the exception of guarantors or co-makers. Engaging in such actions constitutes unfair debt collection practices, thereby violating regulatory standards.

Furthermore, the National Privacy Commission (NPC) has issued Circular No. 20-01, titled “Guidelines on the Processing of Personal Data for Loan-Related Transactions,” which expressly forbids online lenders from accessing a borrower’s contact lists or email addresses for the purpose of debt collection, particularly to avoid harassing the borrower or their associates.

It’s crucial to note that breaches of data privacy regulations fall under the purview of the NPC as delineated in the Data Privacy Act. For further clarification and details regarding data privacy regulations, individuals are encouraged to refer to the NPC’s official website for comprehensive information and guidance.

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CashLoanPH Changed status to publish 14/04/2024