Illegal lending apps in the Philippines violate multiple laws — from the Lending Company Regulation Act to the Data Privacy Act. This guide explains exactly what makes a lending app illegal, what the SEC and BSP have done about it, and how to protect yourself.
Monthly interest rate cap is 6% for short-term loans. Apps charging above this are violating BSP regulations.
Accessing your phone contacts without explicit consent for debt collection purposes is illegal.
Posting borrower information on social media or contacting employers/family to shame borrowers is prohibited.
All lending companies must register with the SEC. Operating without registration is a criminal offense.
Threatening borrowers with arrest, public exposure, or physical harm is a criminal act.
Charging fees before releasing loan funds is deceptive and illegal under consumer protection laws.
SEC issued CDOs against 67 online lending platforms for illegal operations and harassment.
BSP fined 3 digital lenders for exceeding the monthly interest rate cap.
NPC penalized 12 lending apps for unauthorized access to borrower contact lists.
SEC launched real-time monitoring system for online lending app compliance.
Lenders must disclose the full annual percentage rate before you sign.
Lenders cannot access your contacts, photos, or location without consent.
Debt collectors cannot harass, threaten, or publicly shame you.
You can dispute incorrect charges and file complaints with the SEC or BSP.