ONLINE lenders were reminded on Tuesday to uphold borrowers’ data privacy and refrain from abusive collection practices amid continued consumer complaints.
In a joint advisory, the Securities and Exchange Commission (SEC), the Department of Information and Communications Technology (DICT), and the National Privacy Commission (NPC) reiterated that lending and financing companies must comply with the Data Privacy Act of 2012 and the Financial Products and Services Consumer Protection Act when processing personal data for loan-related transactions.
They also cited existing SEC rules, including Memorandum Circular 18, Series of 2019, which prohibits unfair debt collection practices, and Memorandum Circular 19, Series of 2019, that requires firms to disclose the online lending platforms (OLPs) that they operate.
“The government recently received numerous reports of OLPs engaging in harassment, intimidation, public shaming and unlawful use of personal data in their collection practices,” the advisory states.
“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,” it adds.
The agencies stressed that OLPs were prohibited from accessing borrowers’ contact lists and communicating with individuals who are not declared guarantors.
They warned that excessive or unauthorized processing of personal data could lead to harassment and unfair debt collection.
The advisory also underscored the responsibility of lending platforms to ensure the secure disposal or destruction of personal data once it is no longer necessary, and to allow users to withdraw or revoke permissions granted to applications after their purpose has been fulfilled.
“Violations of applicable laws, implementing rules and regulations, and SEC regulations may subject erring companies to administrative sanctions, including fines, suspension or revocation of authority to operate,” the agencies said.
At the same time, the SEC, DICT and NPC urged borrowers to remain vigilant when using online lending apps. The public was advised to download applications only from official or verified sources and to ensure that these are operated by SEC-registered and licensed firms.
Borrowers should also carefully review privacy notices, consent forms and app permissions, noting that some platforms may use deceptive design techniques to obtain access to personal data.
They were likewise reminded to secure the consent of their guarantors before listing them in loan applications.
Complaints involving unfair debt collection practices may be filed with the SEC’s Financing and Lending Companies Department through its online portal or hotline.
Other abusive acts, including harassment, fraud and scams, may be reported to authorities such as the DICT, National Bureau of Investigation and the Philippine National Police.
