Loan app harassing you? Know your rights

Under SEC Memorandum Circular No. 18, Series of 2019, lending and financing companies and their collection agents are prohibited from using unfair collection practices. That includes threats of violence or harm, use of obscene or abusive language, publishing lists of borrowers who cannot pay, and false statements such as pretending to be a lawyer, a court, or a government agency.

Contacting the people in your phonebook to shame or pressure you is also prohibited. Your contacts did not borrow money. Messaging them about your debt can breach both the SEC circular and the Data Privacy Act of 2012.

Non-payment of a loan is a civil matter, not a criminal one. No one goes to prison simply for failing to pay. If a collector tells you that police are on the way or that you will be arrested tonight, that is a pressure tactic, not a legal fact.

First, screenshot everything. Save the messages, the caller numbers, the timestamps, and any posts. Evidence is what makes a report actionable.

Second, revoke the app's permissions on your phone, especially contacts, storage, and photos. On Android, open Settings, then Apps, select the app, then Permissions, and turn off everything it does not need. This stops further harvesting even if the app stays installed.

Third, do not engage with abusive messages. You can state once, in writing, that you will only discuss the account through official written channels.

Report unfair collection practices to the SEC Enforcement and Investor Protection Department. Include the app name, the operating company if you know it, screenshots, and the dates.

Report misuse of your contacts, photos, or personal data to the National Privacy Commission. This is the right channel when the app scraped your phonebook or used your images.

You can also file an anonymous scam report on LegitLend PH so other borrowers see the pattern. We are an independent information resource, not a lender and not affiliated with the SEC, so reporting to the agencies above is still the step that carries legal weight.