Everything is overpriced nowadays. Either you must travel abroad, or you must seek employment with a big wage if you want to cover your expenses. Some individuals attempt to earn a passive income while working. Some people commit theft simply to get by and support their families. Yet other people put their reputations at jeopardy by taking out loans from loan sharks.
Have you ever had trouble keeping up with your bill payments? And the only way to pay off your debt is to get a loan in order to pay back your current debt.
Have these loaning companies troubled you? Have you received spam calls from these companies? Did they contact your relatives, friends, and family? Do they have the right to call anyone who is linked to you, and if so, is this legal?
The Philippine law on authorized lenders and even loan sharks give the borrower and the lender the ability to agree on the loan’s interest rates and other expenses.
The Bill of Rights (Art. III, Sec. 20) of the 1987 Charter protects borrowers from being imprisoned for debt. However, if all terms of the loan agreement are put into writing and are agreed upon by both parties, the borrower is still liable to pay off any borrowed amount from a lender.
If loan sharks start to harass you, you can follow these methods.
- The majority of loan sharks turn to online harassment by posting the borrower’s information to discredit the subject. Take a screenshot of the post in this situation and report the crime right away to the PNP-ACG or the NBI Cybercrime Division.
- . Right after business hours, some debt collection companies make that threatening call. Whenever possible, record every aspect of the call, including the caller’s name, the agency they were calling from, the reason they were calling, and any inappropriate comments that were made. This is very important for borrowers who face this type of illegal debt collection measure. The complainant should seek assistance from the local courts if the complaint could lead to civil or criminal liability.
- Look for legal credit sources: If you need to borrow money, look for legal credit providers like banks, credit unions, or authorized moneylenders. These lenders are governed and bound by laws, which can shield you against dishonest business practices. Verify the lender’s license status. Check if the lender is permitted to conduct business in the Philippines by visiting the Securities and Exchange Commission (SEC) website. You can also look at the SEC’s list of lenders whose certificates of authority have been suspended or revoked.
- Avoid engaging with loan sharks: If you have any reason to believe that the person you are talking with is a loan shark, stop any further communication. This entails declining their offers of a meeting in person and not returning their calls, texts, or emails. Never divulge sensitive information to anyone you don’t trust, such as your Social Security number or bank account information. When applying for loans online or giving out personal information, be caution because it could be exploited for identity theft or other types of fraud.
- Report illegal activity: Inform the proper authorities, such as the police or financial regulatory bodies, if you suspect you have been the target of a loan shark or have knowledge of illegal lending practices. By doing this, you can prevent other people from becoming a victim of these crimes. The NPC is responsible for enforcing the Data Privacy Act of 2012, which regulates the processing of personal information in the Philippines. The NPC can investigate complaints, issue orders to stop illegal activities, and impose fines or other penalties on violators of the law.
Keep in mind that the law in the Philippines protects you from unethical loan practices. Learn how to handle harassment by loan sharks in the Philippines. Also, be mindful of your privileges as a borrower by steering clear of loan sharks at all costs, selecting a personal loan from authorized lenders, and getting assistance from the appropriate government organization.
Loan sharks are nonetheless subject to the Philippines’ data privacy rules, and they are not permitted to use or divulge your personal information without your permission.
Individuals should be cautious with their finances by budgeting and refraining from buying things they don’t absolutely need. If we genuinely need to borrow money, let’s make sure we’re capable of repaying it in order to prevent further abuse.
Keep in mind that loan shark is against the law, unethical, and can have negative financial and personal effects. You can stop loan sharks from preying on weak people and communities by taking precautions for your safety and reporting illegal behavior.
Useful links are provided below for your reference.:
https://www.privacy.gov.ph/wp-content/uploads/2020/10/NPC-Circular-No.-20-01.pdf
MC No. 18 s.2019 – Prohibition on Unfair Debt Collection Practices of Financing Companies(FC), and Lending Companies(LC)
ADM PRIVACY WEBSITE 