Collections Practices: Calling Your Friends and Contacts

Do you have a debt against a lending company, credit card, or online lending apps? Di you miss your payment, and they kept calling your references?

Have they accessed your contact list and calling your friends? Are they calling your company? Have they messaging your friends in FB and other social media accounts about your debt?

I know this feeling and I am pretty sure you feel so powerless. This kind of practices always makes someone feel less. 

Now the question is, do these lending companies or collectors have the right to do this? 

The big answer is "NO". This is actually a breach of the DATA PRIVACY ACT and one of the defined illegal practices of lending companies. 

Can agent or personnel of the lending company or collections agency contact the persons (or the so-called references) in the borrower’s contact list? And even if the borrower gave consent? 

No. Even if the borrower provided permission, SEC MC 18 prohibits contacting anyone on their contact list (apart from the guarantors or co-makers). A such action would be considered an unjust debt collection technique. 

The National Privacy Commission (NPC) also released Circular No. 20-01, titled Guidelines on the Processing of Personal Data for Loan-Related Transactions, which forbids online lenders from accessing email or contact lists for the purpose of harassing the borrower or his or her contacts. 

According to the Data Privacy Act, the NPC has jurisdiction over violations of data privacy. For additional information, see the NPC website.

Since many people do not know it, collectors or the lending take advantage of it. If you are experiencing this, then please file a report with the NPC as this is a big violation of the DATA PRIVACY ACT. You can also file a complaint with the different agencies below. 

National Privacy Commission (NPC) via complaints@privacy.gov.ph; 

Philippine National Police Anti-Cybercrime Group via acg@pnp.gov.ph and pnpacgcfcu@gmail.com;

National Bureau of Investigation Cybercrime Division via their official Facebook page; and

Department of Justice – Office of Cybercrime via cybercrime@doj.gov.ph.

 

The DOJ Office of Cybercrime flagged the illegal debt collection tactics of online lending organizations on April 23, 2021, citing an increase in the volume of reports it has been receiving. The government stated in its public advisory that a number of regulations forbid these internet businesses from accessing the debtor's phone contacts, displaying their personal information, threatening them with physical harm or death, or using profanity.

Collection Agencies: Tinatawagan nila ang mga kaibigan ko