MANILA, Philippines — A lawmaker is proposing the provision of more powers to the Securities and Exchange Commission (SEC) so that it can fight rogue online lending applications (OLA) and abusive debt collectors, amid numerous complaints filed before authorities.
In a statement on Wednesday, Quezon City Rep. Patrick Michael Vargas said he has filed House Bill (HB) No. 9738, or the proposed Fair Debt Collection and Digital Lending Consumer Protection Act, which seeks to empower the SEC and create a list of prohibited actions—like harassment of loanees, threats of violence, and public shaming.
According to Vargas, the bill is necessary to protect the dignity of Filipinos who, sometimes, have no other recourse but to borrow from online lenders just so they could make ends meet.
“Madalas, kapit sa patalim na ang mga umuutang sa mga digital lenders. Layunin natin silang protektahan mula sa lalong kagipitan dala ng mga mapanakot, abusado, at iligal na paraan ng paniningil,” Vargas said.
(Oftentimes, those who take loans from digital lenders are on a razor’s edge. Our goal is to protect them from further difficulties brought by fear-mongering, abusive, and illegal methods of securing payments.)
“Sa pamamagitan ng panukalang ito, binibigyan natin ang SEC ng dagdag na awtoridad para linisin ang digital lending sector, ipasara ang mga iligal na OLA, at panagutin sa batas ang mga nangha-harass,” Vargas said.
(Through this proposal, the SEC gives additional authority to clean the ranks of the digital lending sector, order the closure of illegal OLAs, and hold accountable those who harass loanees.)
Under the bill, the SEC will be the primary implementing agency, which shall coordinate with the National Privacy Commission (NPC), the Department of Information and Communications Technology (DICT), and Bangko Sentral ng Pilipinas.
The SEC will be tasked with establishing a Verified Collection Identity System where covered entities—lending companies under Republic Act No. 9474, OLAs, third-party collection agencies, or individuals engaged in the collection of debts—are required to register their duly authorized collection agents and the communication channels they will use.
“The SEC shall maintain a centralized, publicly accessible verification platform that allows borrowers to confirm the identity of collection agents and the authenticity of communications,” Section 6 of the proposed bill stated.
“All collection communications must […] Originate solely from registered communication channels; and contain sufficient identifying information as may be prescribed by the SEC,” it added. “The use of unregistered, spoofed, anonymous, or deceptive communication channels is strictly prohibited.”
The following activities are considered prohibited:
- Harassment, intimidation, or threat of harm
- Use of obscene, profane, or abusive language
- Public shaming or disclosure of borrower information to third parties without a lawful basis, in violation of the Data Privacy Act of 2012
- Communication with persons other than the borrower, except as permitted by law or with express consent
- Excessive or unreasonable communications, including those made at unreasonable hours or frequency as may be defined by the SEC
- Misrepresentation of the amount owed, terms of the loan, or consequences of non-payment
- False threats of legal action or criminal prosecution
- Use of unregistered communication channels
- Any deceptive, unfair, or unconscionable means in debt collection
“After due notice and hearing, the SEC may impose the following […] Fines ranging from P50,000 to P5 million, depending on gravity; suspension or revocation of Certificate of Authority; blacklisting and permanent disqualification of the entity and responsible officers; compliance and cease-and-desist orders; and referral for criminal prosecution under applicable laws,” Vargas said in Section 9.
The following laws, meanwhile, may be used to prosecute violators:
- Grave Threats, Light Threats, Coercion, Unjust Vexation, and Defamation under the Revised Penal Code
- Cyber-related offenses, including but not limited to cyber libel, unlawful use of electronic communications, and other analogous acts under the Cybercrime Prevention Act of 2012
- Unauthorized processing, disclosure, or misuse of personal data under the Data Privacy Act of 2012
“While we support financial inclusion, we will never tolerate harassment of any kind. Hindi pwedeng kapalit ng pag-utang sa oras ng pangangailangan ang kawalan ng dignidad at seguridad ng ating mga mamamayan,” Vargas noted.
(While we support financial inclusion, we will never tolerate harassment of any kind. The people should not give up their dignity and security in exchange for taking loans in times of crises and emergencies.)
Just earlier, it was reported that the SEC has ordered online lending platform CredLadder to immediately stop operating due to unauthorized lending activities and abusive collection practices.
In a cease-and-desist order, the SEC’s Enforcement and Investor Protection Department said CredLadder had continued operating even after the regulator issued an advisory against the platform in June.
The regulator highlighted that CredLadder was not in its database of online lenders or the Department of Trade and Industry’s Business Name Registration System. CredLadder allegedly imposed excessive interest charges and sent humiliating or threatening messages to borrowers.
However, reports of abusive behavior from OLAs are not new. In March 2026, the Presidential Anti-Organized Crime Commission (PAOCC) revealed that it has received over 47,000 complaints of allegedly abusive behavior by companies with OLA functions, in less than two years, from August 2024 to January 2026.
PAOCC Executive Director Benjamin Acorda Jr. shared this with the media in Camp Crame on Monday, after signing a memorandum of agreement with the Cybercrime Investigation and Coordinating Center (CICC) to strengthen its campaign against illegal online activities.
“What hurts there is that, with most of our countrymen, there are reports of depression. They don’t know how to settle their debts,” Acorda said in the March 16, 2026 press briefing.
“There are some instances wherein, instead of them paying off their debts, it only balloons further,” he added.