Sen. Juan Miguel “Migz” Zubiri raised alarm over the absence of caps on interest rates for online lending applications, warning that the lack of regulation exposes millions of Filipinos to abusive practices.
During a Senate Committee on Games and Amusement hearing, Zubiri questioned why the Securities and Exchange Commission (SEC) — and not the Bangko Sentral ng Pilipinas (BSP) — supervises digital lenders.
He argued that the BSP has long-established financial oversight mechanisms that could better protect borrowers.
Zubiri expressed concern that without a law limiting interest charges, lending apps could impose rates as high as 20 percent per week. An SEC lawyer confirmed that the Usury Law had been suspended and that no substitute regulation currently restricts rates.
The senator warned that ordinary workers, particularly minimum wage earners, often sign loan agreements without fully understanding the fine print.
He criticized practices by some online lenders that involve public shaming of delinquent borrowers through contacts listed on their phones.
Citing a 2024 Supreme Court ruling that deemed a 3 percent monthly interest rate “unconscionable,” Zubiri said allowing higher charges leaves consumers vulnerable. He pressed regulators to act, stressing that every delay risks worsening the financial and psychological toll on borrowers.
Zubiri proposed transferring responsibility for online lending regulation from the SEC to the BSP.
“Maybe what we should do is let the SEC concentrate on corporations and give the lending regulation to the BSP, because they are the experts and they can act faster,” he said.
Meanwhile, the same committee, chaired by Sen. Erwin Tulfo, ordered the issuance of a show-cause order against Meta-Facebook Philippines after its representatives failed to attend the hearing on online gambling.
Meta had earlier requested a separate meeting with Tulfo at a more convenient time, a proposal the senator rejected.
He stressed the urgency of tackling the spread of illegal gambling links on social media platforms, particularly after some sites shifted from e-wallets to Facebook and other apps.
“No. Why are they dictating this committee when they will attend? If we need to subpoena their country representative, we will,” Tulfo said.
Sen. Risa Hontiveros supported the move, saying Meta must explain its absence.
Tulfo underscored the seriousness of the issue, noting that online gambling has reached a wide portion of the population.
“This is a national problem. Imagine, there are about 65 percent of Filipinos hooked on online gambling. That is what we are trying to solve,” he said.
Digital rights advocate Ronald Gustilo told the panel that illegal gambling operators are actively posting back-up links on Facebook groups and messaging apps like Telegram and Signal.
Tulfo concluded that Meta’s refusal to attend the hearing shows disregard for Congress’ oversight role.
“We invited them, but they refused. They want it on their own terms. That is unacceptable,” he said.
