MANILA, (PIA) — Senator Win Gatchalian has called for urgent legislative action to address the harassment faced by borrowers from online lending companies. He expressed his concern over numerous complaints his office has received regarding aggressive debt collection practices.
“Online lenders have made it easier for people to borrow money. However, just one day of missed payment leads to threats and harassment. They shame borrowers in their communities and sometimes even send death threats or bullets,” Gatchalian said.
To combat these unfair practices, Gatchalian has filed Senate Bill No. 818, known as the Fair Debt Collection Practices Act. The proposed legislation seeks to prohibit debt collectors from engaging in harassment, oppression, or abuse while collecting debts. It specifically bans the use or threat of violence, obscene language, and the disclosure of borrowers’ identities.
“Lenders have the right to collect debts, but they must do so in a proper and legal manner. Collection practices should be fair and not involve threats or intimidation,” he emphasized.
Gatchalian also urged the Securities and Exchange Commission (SEC) to implement stricter registration requirements for online lending companies. He pointed out that the minimum capitalization for lending firms is only P1 million, regardless of the number of online lending apps they operate.
Currently, there are 117 lending and financing corporations and 181 online lending applications registered with the SEC. Gatchalian’s push for reform aims to protect consumers and ensure ethical practices in the lending industry. (JCO/PIA-NCR)
