The Department of Justice on Monday warned online lending companies (OLCs) they may face criminal cases for harassing, issuing threats or shaming their debtors who have failed to settle their accounts on time.
DOJ-Office of Cybercrime officer-in-charge Charito Zamora issued the warning after receiving several complaints of unfair debt collection practices and cyber harassments reportedly being done by OLCs.
“In particular, the reports alleged that certain OLCs are engaged in unfair debt collection practices and cyber harassments when its debtors fail to settle their account balances,” Zamora said.
The four most common complaints include accessing of debtors’ phone book/ contacts list for purposes of sending them messages in the event of untimely and/or non-payment; posting of the debtors’ personal and sensitive personal information online for purposes of shaming them; threatening the debtors with death and physical injuries if they fail to settle their account balances; and using profane language through text message directly sent to the debtors and the debtors’ references for purposes of shaming them.
According to Zamora, OLCs engaged in such illegal practices may be charged for violation of the Cybercrime Prevention Act and the Data Privacy Act.
Depending on the allegations made by the complainant, the OLCs engaged in unfair debt collection practices may also be held liable for any of the crimes of grave or light threats, grave or light coercions, or unjust vexation.
“Since the threat was committed by, through and with the use of information and communication technology (ICT), Section 6 of the Cybercrime Prevention Act comes into play. Accordingly, the imposable penalty becomes one degree higher than that provided for under Revised Penal Code,” Zamora said.
Complainants could file either with the Office of the Prosecutor, National Bureau of Investigation- Cybercrime Division, the Philippine National Police-Anti-Cybercrime Group, or the National Privacy Commission.