In a bid to address the widespread issue of unfair debt collection practices, Senator Idol Raffy Tulfo has called for a Senate investigation into lending companies accused of harassing borrowers and employing abusive methods to recover debts.
Senator Tulfo, through Senate Resolution (SR) No. 746, expressed concern over reports that certain lending firms are resorting to libelous social media posts, collecting payments from unrelated contacts of borrowers, and even resorting to sending coffins and death threats.
Citing Securities and Exchange Commission (SEC) Memorandum Circular No. 18, series of 2019, and the Implementing Rules and Regulations of Republic Act No. 11765, known as the "Financial Products and Services Consumer Protection Act," Senator Tulfo emphasized that such practices are explicitly prohibited. The regulations prohibit financial service providers from using threats against clients and contacting individuals not listed as guarantors or co-makers.
Despite existing laws, Tulfo highlighted an alarming number of lending companies failing to disclose their online lending platforms and continuing abusive debt collection practices. He further pointed out significant violations of Republic Act No. 10173, or the "Data Privacy Act of 2012," with numerous complaints filed against these companies at the National Privacy Commission.
Senator Tulfo underscored the urgency of an investigation to address the escalating complaints against abusive lenders in the country.
