A bill filed at the House of Representatives regulates debt collection practices and protects borrowers from abuse, harassment, and deception.
House Bill 7736 or the proposed “Fair Debt Collection Practices Act,” was authored by CIBAC party-List Rep. Eddie Villanueva.
In filing the measure, Villanueva emphasized that while access to credit is vital for financial inclusion, the rapid expansion of lending, especially through online platforms, has been accompanied by widespread reports of abusive and unfair collection methods.
“These practices include harassment, public shaming, intimidation, misuse of personal data, and threats of criminal prosecution which undermines human dignity and erode public trust in the financial system,” he said.
The measure establishes a rights-based framework that clearly defines allowable and prohibited debt collection conduct. It expressly bans harassment, threats, repeated and indiscriminate calls and messages, public disclosure of debts, misuse of personal data, and false representations involving arrest or imprisonment.
It also requires loan cost transparency, including a built-in loan calculator for online lending platforms, so borrowers can clearly see the true cost of credit before entering into any agreement.
Villanueva clarified that the bill protects borrowers without blocking lawful collection.
“Importantly, the measure does not interfere with legitimate debt recovery or judicial remedies. It ensures that collection efforts remain lawful, proportionate, and respectful of due process. While debts may be enforceable, harassment, humiliation, and coercion are not,” he said.
The proposed law also provides civil remedies for victims of abusive collection practices, and imposes solidary liability on creditors for violations committed by their agents and/or contractors.
“The measure is part of a continuing consumer protection agenda and urges swift congressional action, emphasizing the need to safeguard ordinary Filipinos — especially low-income and first-time borrowers — from exploitative lending and collection practices,” Villanueva stressed.
A similar measure has also been filed at the Senate.
