Press Release
September 6, 2023

Tulfo seeks probe on lending companies' abusive debt collection practice

Senator Idol Raffy Tulfo is seeking a Senate investigation on the rampant unfair debt collection practices of lending companies that allegedly harass borrowers and employ abusive means to collect debt.

In filing Senate Resolution (SR) No. 746, Tulfo lamented that some lending companies are even posting libelous and defamatory posts on social media buy and sell groups, collecting payments from random contacts of their borrowers, and sending coffins and death threats.

Section 1 of Securities and Exchange Commission (SEC) Memorandum Circular No. 18, series of 2019, in relation to Section 4.4 of the Implementing Rules and Regulations of Republic Act No. 11765 or the "Financial Products and Services Consumer Protection Act" specifically prohibits financial service providers from making use of threats to take any action against their clients.

It also prohibits practice of contacting persons in the borrower's contact list other than those who were named as guarantors or co-makers.

Despite the foregoing laws and regulations, Tulfo divulged that there is still an alarming number of lending companies failing to disclose their online lending platforms and employing abusive debt collection practices to the detriment of consumers.

He added that these lending companies also commit significant violations of Republic Act No. 10173 or the "Data Privacy Act of 2012", with most of the companies facing numerous complaints with the National Privacy Commission.

Tulfo stressed the need for an investigation to solve the rising number of complaints against abusive lenders in the country.


Mapang-abusong lending companies, kinastigo ni Tulfo

Pinaiimbestigahan ni Senator Idol Raffy Tulfo ang napaulat na mapang-abusong paraan ng paniningil ng mga lending companies.

Sa paghahain ng Senate Resolution (SR) No. 746, ikinalungkot ni Tulfo na may ilang lending companies na nagpo-post pa ng mapanirang content sa social media buy and sell groups, nangongolekta ng mga bayad mula sa mga random na contact ng kanilang sinisingil, at nagpapadala ng mga death threats.

Ang Section 1 ng Securities and Exchange Commission (SEC) Memorandum Circular No. 18, series of 2019, kaugnay sa Section 4.4 ng Implementing Rules and Regulations ng Republic Act No. 11765 o "Financial Products and Services Consumer Protection Act" ay pinagbabawalan ang financial service providers na magbanta o gumawa ng anumang aksyon laban sa kanilang mga kliyente.

Ipinagbabawal din nito ang pakikipag-ugnayan sa mga tao sa listahan ng contact ng borrower maliban sa mga pinangalanang guarantor o co-maker.

Sa kabila ng mga nabanggit na batas at regulasyon, ibinunyag ni Tulfo na mayroon pa ring nakakaalarmang bilang ng mga lending company na gumamit ng mapang-abusong aksyon sa pangongolekta ng utang na ikasisira ng mga consumer.

Dagdag pa ni Tulfo, ang mga lending company na ito ay nilalabag din ang Republic Act No. 10173 o ang "Data Privacy Act of 2012" kung saan karamihan sa mga kumpanya ay nahaharap sa maraming reklamo sa National Privacy Commission.

Binigyang-diin ni Tulfo na kailangang imbestigasyon ito para malutas ang tumataas na bilang ng mga reklamo laban sa mga abusadong lending company.

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