Senator Win Gatchalian has reiterated the need for a measure that would prohibit unfair debt collection practices of online lending companies, as he lamented harassment being experienced by many borrowers who have availed of loans from online lending companies.

“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. 

The senator earlier filed Senate Bill No. 818 or the Fair Debt Collection Practices Act, which prohibits a debt collector from engaging in any conduct to harass, oppress, or abuse any debtor in the collection of a debt. The bill specifically prohibits the use or threat of violence, use of obscene or profane language, and disclosure of borrowers’ names.

“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 emphasized.

Gatchalian urged the Security and Exchange Commission (SEC) to adopt more stringent requirements relating to the registration of online lending companies, noting that the minimum capitalization for lending companies is only Php 1 million, regardless of the number of online lending apps (OLAs) that they are operating.

Currently, there are 117 lending and financing corporations and 181 OLAs registered with the SEC.