A party-list lawmaker has filed two bills to protect Filipino households from “predatory loans” offered by legitimate financial institutions and informal lenders alike.
To prevent Filipino consumers and small businesses from falling into “debt traps,”
1Tahanan Rep. Nathan Oducado filed House Bill (HB) 6980 or the “Credit Cards and Loans Penalties and Surcharges Regulation Act”, and HB 6968, or the “Strengthening Access to Credit for Micro and Small Businesses Act of 2025.”
“More than 60 percent of Filipino families currently struggle to balance daily expenses with debt payments,” said Cong. Oducado. “As of early 2025, household and consumer loans reached P3.18 trillion, with credit card receivables exceeding P560 billion.”
Under HB 6980, uniform rules will be established on the total cost of credit, regardless of the loan amount or the type of lender.
Disclosure requirements for banks and lending institutions will also be required, providing legal remedies for borrowers subjected to unfair charges, as the lawmaker also urged his colleagues to pass the measure immediately to support equitable economic growth and protect consumers.
“Current Bangko Sentral ng Pilipinas safeguards apply only to loans of P10,000 or less. This leaves larger personal and business loans without comprehensive limits, allowing a P50,000 loan to potentially grow to P120,000 within two years due to interest and penalties,” Oducado pointed out.
“This bill is not anti-lending,” Oducado said. It is pro-fairness. It ensures transparency, protects borrowers from abusive charges, and supports small businesses and families so they can grow instead of being trapped in debt,” he noted.
Meanwhile, HB 6968 shall establish a sustainable financing mechanism for micro and small enterprise (MSME) development through the Pondo Para sa Pagbabago Program.
“Aside from regulating loan penalties and surcharges, we also have to provide better alternatives to informal lenders or the so-called ‘5-6’ money lending system availed of by micro enterprises,” Oducado stressed.
“Aside from making credit accessible, this Bill will also bring down the interest rate at which financial services are made available to MSMEs,” he added.
Oducado emphasized the need to protect Filipinos from “predatory loan practices,” especially those seeking to start or grow their small businesses.
“We cannot let loan predators exploit the desire of small business owners for better lives. The government must take the lead in providing protection and more accessible alternatives,” he stressed.
