Senator Risa Hontiveros has put forward a resolution calling for a Senate investigation into the purportedly "abusive and potentially illegal" debt collection methods employed by online lending companies.
In her submission of a resolution directing the Senate proper committee to conduct an inquiry (PSR) No. 882, Hontiveros referenced previous accounts of a lending firm allegedly dispatching a funeral hearse to the home of a debtor with an outstanding loan, accompanied by a menacing message: "Walang nakukulong sa utang, pero may namamatay" (No one can be jailed because of debt, but some are killed because of it).
Highlighting the persistence of such harassment, Hontiveros remarked, "For several years, numerous Filipinos have not only found themselves buried in debt but have also been subjected to profanity, a barrage of threatening messages and calls, illegal access to contact lists and file folders, misuse of personal information, public humiliation and defamation, and the imposition of exorbitant interest rates, often reaching 15 percent per month."
Moreover, Hontiveros highlighted findings from the Philippine National Police Anti-Cybercrime Group (PNP-ACG), which disclosed that numerous wrongdoers, often foreign entities, are engaged in lending activities without the requisite authorization from the Securities and Exchange Commission (SEC). To address this, the SEC enforced interest rate limits on Online Loan Platforms (OLAs) starting March 1, 2022. The regulatory measures were outlined in the SEC's Memorandum Circular No. 3, implementing the ceilings set by the Bangko Sentral ng Pilipinas (Philippine Central Bank or "BSP") through BSP Circular No. 1133, series of 2021, governing interest rates and other fees imposed by financing companies, lending companies, and their online lending platforms.
She noted, "This online lending model appears to have originated in the Chinese mainland, with Chinese fintech lenders using the phone contact lists of their borrowers to harass their colleagues, family, and friends."
Despite the existence of the SIM Registration Act (R.A. No. 11934) and the collective efforts of the PNP-ACG, National Privacy Commission (NPC), and SEC to regulate the practices of online lending companies, Hontiveros expressed concern that illegal and unjust debt collection practices persist, disproportionately affecting vulnerable Filipinos who rely on small short-term loans for their day-to-day needs.
Moreover, Hontiveros raised the alarm that these online lending operations, shielded by anonymity, may also be facilitating illicit cross-border money flows.
"While valid debts must be settled, debtors should not be subjected to inhumane treatment. These abusive and illegal debt collection practices warrant investigation, and appropriate measures should be implemented to address them," concluded Hontiveros. (PNA)
