Senator Win Gatchalian on Wednesday, April 23, slammed the online lending companies over their “unfair debt collection practices,” accusing them of abusive and often criminal tactics that have left many borrowers suffering from relentless harassment.
In a statement emailed to reporters, Gatchalian called out the online lending firms as borrowers complain about the relentless harassment of these organizations such as threats, public humiliation, and even disturbing gestures like funeral wreaths and bullets being sent to their homes.
“Ang mga nagpapautang na ito, ginawa nilang mas madali nga para makautang ang mga tao. Pero isang araw lang na hindi makabayad, puro pananakot na ang ginagawa nila. Pinapahiya pa sa komunidad at minsan nagpapadala pa ng korona ng patay o bala,” said Gatchalian, citing numerous complaints received by his office.
“Karapatan din ng mga nagpapautang na maningil pero dapat nasa wasto at tamang pamamaraan. Dapat makatarungan at legal yung pangongolekta at hindi pananakot at pagbabanta sa buhay,” he added.
The senator also lashed out at the Security and Exchange Commission (SEC), criticizing its lax oversight regarding those digital platforms working like modern-day loan sharks.
Gatchalian pointed out that online lenders can operate with a measly ₱1 million in capital—regardless of how many apps they run—making it far too easy for abusive actors to enter the market.
Gatchalian didn’t hold back as he pushed for the immediate passage of Senate Bill No. 818 or the Fair Debt Collection Practices Act.
The measure seeks to outlaw abusive, violent, and threatening practices by debt collectors. It also aims to ban public shaming, threats of bodily harm, and the use of obscene language in pursuit of payment.
Currently, there are 117 lending and financing corporations and 181 OLAs registered with the SEC. Gatchalian urged for more stringent regulations to protect consumers from predatory practices. (TCSP)
