top of page
Writer's pictureLawyers Online PH

Understanding Your Rights as a Borrower: Legalities of Lending Apps in the Philippines

Updated: Jun 16, 2023

Introduction



lending app

Lending apps have gained popularity in the Philippines as a convenient option for quick cash. However, the rise of these apps has also brought concerns about debtor harassment and violations of borrower rights. Here's what you need to know about your rights and the legalities surrounding lending apps in the Philippines.


Legal Protections against Debtor Harassment


Republic Act (R.A.) 10175, also known as the Cybercrime Prevention Act of 2012, provides legal protection against cyber harassment and cyberbullying, including offenses such as Illegal Access and Cyber Libel. Lending apps must comply with the provisions of this law when handling borrower information and transactions to ensure the safety and privacy of borrowers.


Data Privacy and Protection


The Data Privacy Act of 2012 (RA 10173) safeguards the processing of personal information and sensitive personal information. It prohibits the unauthorized processing of such data, as well as malicious disclosure. Lending apps must adhere to this law to protect the privacy and personal information of borrowers.


Legal Remedies for Harassment

debt harassment

The Revised Penal Code provisions on grave or light threats, grave or light coercions, or unjust vexation, in relation to Section 6 of RA 10175, offer legal remedies for borrowers who experience harassment or threats from lenders or debt collectors. These provisions ensure that borrowers are protected from any form of mistreatment or coercion.


Guidelines on Fees and Charges


The Bangko Sentral ng Pilipinas (BSP) Circular 454 and Securities and Exchange Commission (SEC) Memorandum Circular 18, series of 2019, provide guidelines to prevent hidden fees and unreasonable charges imposed by lending apps. These guidelines ensure transparency and help borrowers make informed decisions.


Protecting Your Rights as a Borrower


If you experience debtor harassment or believe that a lending app has violated any of these laws or circulars, you have the right to file a complaint with the BSP or the SEC. Our team of expert lawyers at Lawyers Online PH can assist you in filing a complaint and provide legal representation to ensure that your rights as a borrower are protected.


Conclusion


Navigating the landscape of lending apps calls for a clear understanding of your borrower's rights and possible risks. By familiarizing yourself with fair lending practices, you can defend against predatory lending apps and make knowledge-driven choices. At Lawyers Online PH, we strive to protect your rights by offering expert guidance and connecting you with professional legal service providers who can advise and represent you in any matters related to lending apps.


Book an appointment at https://www.lawyersonlineph.com/

461 views0 comments

Comments


bottom of page