Harassment by Credit Peso Online Lending App in the Philippines: Know Your Rights and Legal Remedies

Disclaimer: This article is for informational and educational purposes only and does not constitute legal advice. If you require specific legal guidance, consult a qualified attorney or seek assistance from the relevant government agencies in the Philippines.

Introduction

The rise of online lending applications in the Philippines has transformed how people access credit. With just a few taps on a smartphone, borrowers can secure short-term loans without the hassle of traditional banking requirements. However, this convenience has also given rise to serious consumer protection concerns, particularly with unethical debt collection practices.

One such app, widely known as Credit Peso, has been the subject of numerous complaints involving harassment, threats, and privacy violations. Borrowers have reported abusive collection tactics, including incessant calls, public shaming, and unauthorized use of personal data. This article explores the legal framework governing online lending in the Philippines and provides actionable steps borrowers can take if they experience harassment from Credit Peso or similar lending apps.

Understanding the Online Lending Industry in the Philippines

The Rise of Digital Lending

The FinTech (Financial Technology) industry has flourished in the Philippines, primarily due to the high mobile penetration rate and the growing demand for quick-access loans. Many online lending platforms target individuals who lack access to traditional banking services, offering fast loan approvals without requiring collateral or credit checks.

Regulatory Authorities Overseeing Online Lending

Online lending companies in the Philippines fall under the jurisdiction of several regulatory bodies:

• Securities and Exchange Commission (SEC) – Oversees lending and financing companies under the Lending Company Regulation Act of 2007 (RA 9474) and monitors compliance with fair debt collection practices.
• Bangko Sentral ng Pilipinas (BSP) – Regulates banks and financial institutions, though most online lending apps fall under the SEC’s supervision.
• National Privacy Commission (NPC) – Enforces the Data Privacy Act of 2012 (RA 10173), ensuring that lending apps handle borrowers’ personal information lawfully.

Licensing and Registration Requirements

All legitimate lending companies must be registered with the SEC. Many unlicensed apps operate illegally, often through shell companies or anonymous offshore entities. Borrowers should verify a lender’s legitimacy by checking the SEC website or directly contacting the SEC before taking out a loan.

Common Harassment Tactics Used by Credit Peso and Similar Apps

Despite regulations, many online lenders engage in aggressive collection tactics that violate borrowers’ rights. Here are some of the most commonly reported forms of harassment:

Excessive or Abusive Communication

• Repeated calls or messages at unreasonable hours, including late at night.
• Use of threatening language, profanity, or verbal abuse.
• Intimidation tactics, such as false threats of arrest, lawsuits, or criminal charges.

Public Shaming and Debt Shaming Tactics

• Disclosure of a borrower’s loan status to family, friends, or employers.
• Threats to publish personal information or debt details on social media.
• Creating group chats involving the borrower’s contacts and labeling them as delinquent debtors.

Unauthorized Use of Personal Data

• Accessing a borrower’s contact list, photos, or messages without consent.
• Installing spyware-like permissions to track location or extract sensitive information.

False Representation and Impersonation

• Posing as lawyers, police officers, or court officials to intimidate borrowers.
• Sending fake legal documents to pressure immediate payment.

Legal Framework Protecting Borrowers from Harassment

Data Privacy Act of 2012 (RA 10173)

The Data Privacy Act protects borrowers from the unauthorized collection and misuse of personal data. Key provisions include:

• Right to Information – Borrowers must be informed about how their data is collected and used.
• Right to Object – Borrowers can refuse data processing beyond the loan’s legitimate purpose.
• Right to Erasure – Borrowers can demand the deletion of unlawfully obtained data.

Penalties: Violators can face fines of PHP 500,000 to PHP 5 million and imprisonment of up to six years.

SEC Memorandum Circular No. 18, Series of 2019

• Prohibits abusive, deceptive, and unfair collection practices.
• Prohibits harassment, threats, public shaming, or intimidation of borrowers.
• Lending companies violating this circular can be fined, suspended, or have their licenses revoked.

Lending Company Regulation Act of 2007 (RA 9474)

• Requires all lending companies to be registered with the SEC.
• Mandates transparency in loan agreements, including interest rates, fees, and penalties.

Consumer Act of the Philippines (RA 7394)

• Prohibits fraudulent and misleading practices by financial service providers.
• Protects consumers from deceptive advertising and unfair contract terms.

How Borrowers Can Take Legal Action Against Harassment

File a Complaint with the SEC

• Report abusive collection tactics and unlicensed lenders.
• Submit supporting evidence such as screenshots, call logs, and chat messages.

Report to the National Privacy Commission (NPC)

• If an app accesses personal data without consent, borrowers can file a complaint.
• Evidence of unauthorized data collection or misuse strengthens a case.

Seek Legal Remedies

• Civil case: File for damages due to harassment or defamation.
• Criminal case: Pursue charges for data privacy violations or threats.

Approach the Cybercrime Division of the PNP

• If digital harassment, threats, or illegal data access occurs, report it under the Cybercrime Prevention Act of 2012 (RA 10175).

Best Practices to Protect Yourself from Online Lending Harassment

• Verify a lender’s SEC registration before borrowing.
• Read the terms and conditions carefully, especially regarding data access.
• Document all interactions with the lender for potential legal action.
• Do not give unauthorized access to your contact list or sensitive data.
• Negotiate repayment terms legally instead of succumbing to pressure.
• Seek legal help from consumer protection groups if harassment occurs.

Potential Penalties for Predatory Lending Apps

Regulatory Sanctions

• SEC fines and license revocation for unfair collection practices.
• NPC penalties for unauthorized data use.

Criminal Charges

• Imprisonment of up to six years for data privacy violations.
• Cybercrime-related offenses for threats or unauthorized data access.

Civil Liabilities

• Affected borrowers can sue for damages and harassment-related distress.

Conclusion: Borrowers Have Rights – Use Them!

Harassment by online lending apps like Credit Peso is a widespread issue in the Philippines, but borrowers have legal protections. By knowing their rights under the Data Privacy Act, SEC regulations, and consumer protection laws, borrowers can take action against abusive lenders.

If you experience harassment, remember to document everything, file complaints with the SEC and NPC, and seek legal help. You have the right to fair and ethical treatment when borrowing money—don’t let predatory lenders take advantage of you.