The Securities and Exchange Commission (SEC), Department of Information and Communications Technology (DICT), and National Privacy Commission (NPC) have issued a joint advisory reminding online lending platforms (OLPs) to comply with data privacy laws amid reports of abusive collection practices.
In the advisory, the agencies said lending and financing firms must strictly follow rules on processing borrowers’ personal data under the Data Privacy Act of 2012 and the Financial Products and Services Consumer Protection Act.
The regulators cited reports of OLPs engaging in harassment, intimidation, public shaming, and unlawful use of personal data in debt collection.
“Digital transformation must protect — not prey upon — the Filipino people. The National Government stands firm in enforcing the law and safeguarding the rights, privacy, and dignity of every Filipino in the digital economy,” the advisory stated.
The agencies reiterated that online lenders are prohibited from accessing borrowers’ contact lists and contacting individuals who are not declared guarantors, warning that such practices may constitute unfair debt collection and unlawful data processing.
They also emphasized that companies must ensure the secure disposal of personal data and allow users to revoke app permissions once these are no longer necessary.
Violations could lead to administrative penalties, including fines, suspension, or revocation of licenses to operate, the regulators said.
The advisory likewise urged borrowers to download lending apps only from official sources and verify if operators are SEC-registered. Users were also warned against deceptive app design practices that may trick them into granting excessive data access.
Authorities said complaints on abusive collection practices may be filed with the SEC, while cases involving harassment, fraud, and scams should be reported to law enforcement agencies, including the DICT, the National Bureau of Investigation, and the Philippine National Police.
