How to fight loan shark harassment in the Philippines?


Loan shark harassment is a pressing issue that plagues many consumers in the Philippines. These unscrupulous lenders often exploit vulnerable individuals, charging exorbitant interest rates and employing aggressive tactics to collect debts.

To safeguard consumers from such predatory practices, the Philippines has established several laws and regulations that provide legal protections and remedies for borrowers.

In this review article, CashLoanPH will explores the key legislative acts designed to combat loan shark harassment and outlines the steps consumers can take to file complaints and seek justice in the court of law.

Republic Act No. 9474 – The Lending Company Regulation Act of 2007

The Lending Company Regulation Act of 2007 serves as one of the cornerstones in the fight against loan shark harassment in the Philippines. This act sets forth comprehensive guidelines and regulations for lending companies to ensure fair and transparent lending practices. It covers aspects like interest rates, disclosure of loan terms, and penalties for non-compliance. By familiarizing themselves with the provisions of this act, borrowers can gain an understanding of their rights and the lender’s obligations.

Republic Act No. 8556 – The Financing Company Act of 1998

The Financing Company Act of 1998 is another crucial piece of legislation that contributes to protecting consumers from loan shark harassment. It governs the operations of financing companies, which play a significant role in providing credit to individuals and businesses. This act lays down rules on the amount of interest that can be charged, the duration of loans, and other essential aspects of lending transactions. By adhering to this act, financing companies can operate legally and ethically, safeguarding borrowers from potential harassment.

18th Congress – Senate Resolution No. 121

The 18th Congress introduced Senate Resolution No. 121 to address the emerging challenges posed by loan sharks in the Philippines. This resolution serves as a legislative statement expressing the Senate’s commitment to combatting loan shark harassment effectively. While not a law itself, it signifies the government’s acknowledgment of the issue and highlights its commitment to finding solutions and enforcing existing laws more rigorously.

Republic Act No. 3765 – The Truth in Lending Act

The Truth in Lending Act is a pivotal piece of legislation that aims to promote transparency and fairness in lending practices. It requires lenders to disclose all relevant information to borrowers, including the total cost of credit and the annual percentage rate (APR). This act empowers borrowers to make informed decisions, avoiding potential traps set by loan sharks who might obscure critical terms to exploit them later. By understanding the provisions of this act, borrowers can protect themselves from predatory lending schemes.

Seeking Justice: Filing Complaints and Going to Court

If borrowers suspect that a lender is violating any of the aforementioned laws, it is essential to take action promptly. The first step is to document all communication and transactions with the lender to build a strong case. Next, the borrower should file a formal complaint with the appropriate regulatory authority, providing all relevant evidence. The regulatory body will investigate the matter and, if deemed necessary, take legal action against the lender.

Should the dispute remain unresolved, borrowers have the option to seek justice through the court system. Engaging legal representation can be beneficial during this process, as it ensures that the borrower’s rights are protected and advocated effectively in court. By taking these steps, borrowers not only protect themselves but also contribute to the overall effort in eradicating loan shark harassment from the financial landscape of the Philippines.


Loan shark harassment is a significant issue that requires decisive action and robust legal protections to safeguard consumers in the Philippines. With the existence of key legislative acts such as the Lending Company Regulation Act of 2007, the Financing Company Act of 1998, Senate Resolution No. 121, and the Truth in Lending Act, borrowers have legal recourse against unscrupulous lenders.

By understanding their rights and being proactive in reporting violations, borrowers can actively participate in the fight against loan shark harassment and foster a more secure and fair financial environment in the country.

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CashLoanPH Changed status to publish 21/07/2023