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How to Report Abusive Loan Collection Practices

By Marissa Dela Cruz · Last updated: 1 October 2026

Owing money is not a crime, and being behind on a loan does not take away your dignity or your rights. A lender may ask for payment. It may not threaten you, shame you, or drag your family, friends or employer into the matter. If you face harassment from a lender or collector, this guide explains what counts as abusive collection, how to document what happened, and where and how to report it in the Philippines. It is part of our loan app safety guide for the Philippines. Complaint procedures change, so follow the instructions on the agency's official website.

What Counts as Abusive Collection

For financing and lending companies and their collection partners, the Securities and Exchange Commission (SEC) issued Memorandum Circular No. 18, Series of 2019, which prohibits unfair debt collection practices. The acts it lists include using or threatening violence or other criminal means to harm a person, their reputation or property; using obscene, insulting or profane language; making false or misleading representations, such as pretending to be a lawyer, court officer or government agent; disclosing or threatening to disclose a borrower's name or personal information as someone who refuses to pay, subject to narrow exceptions; contacting people in your phone's contact list other than those you named as guarantors or co-makers, even if you gave permission; and contacting you at unreasonable hours, generally before 6 a.m. or after 10 p.m., with limited exceptions. Misuse of your data can also violate the Data Privacy Act of 2012 (Republic Act No. 10173), and the Financial Products and Services Consumer Protection Act (Republic Act No. 11765) addresses abusive practices by financial providers. If you are unsure whether a practice is covered, report it anyway and let the agency assess.

Collecting a Debt Is Allowed, Harassment Is Not

Lenders may use reasonable and legally permissible means to collect: payment reminders, calls or messages at reasonable hours, a payment plan offer, a demand letter, or lawful legal action. What crosses the line is the manner: threats, shame, deception, or involving people who are not part of the loan. Under the Philippine Constitution a person cannot be imprisoned for debt. Our page on late payment fees and consequences explains what can and cannot happen when a payment is missed.

How to Document What Happened

Take screenshots of messages, chats, emails, posts and app notifications, with the sender, number or account name, date and time visible.
Keep your call log showing numbers, dates and times.
Write notes right after each call: who called, when, what was said and how it affected you.
Save messages received by others. If a relative, friend or employer was contacted, ask them to screenshot and send you what they received.
Keep loan records: the agreement, disclosure statement, app screenshots, payment receipts and reference numbers.
Note the app and company names, including any corporate name, address or registration number shown in the app.
Do not delete anything until your complaint is resolved.

A caution on recordings: Philippine law (the Anti-Wiretapping Act, Republic Act No. 4200) restricts recording private communications without consent. Do not secretly record calls unless you have received legal advice. Call logs, screenshots and written notes are safer.

Where to Report

The right agency depends on who the lender is and what happened. You can report to more than one.

Securities and Exchange Commission (SEC): for lending companies, financing companies and their online lending platforms, covering unfair collection, harassment, lending without authority and misleading practices. The lending and financing companies section of its website explains how to file; it has promoted an online complaint portal in recent years, so check for the current channel.
National Privacy Commission (NPC): for misuse of personal data, such as contact-list scraping or shaming messages sent to your contacts. It accepts complaints through its online complaint system and other channels on its website, and generally asks for a signed and sworn complaint statement with evidence.
Bangko Sentral ng Pilipinas (BSP): for banks, digital banks, e-money issuers and other BSP-supervised institutions. You usually raise the complaint first with the institution's own consumer assistance channel, then escalate to the BSP if it is not resolved.
Law enforcement: for threats of violence, extortion or other crimes, report to the police, including the PNP Anti-Cybercrime Group, or the National Bureau of Investigation cybercrime unit. If you are in immediate danger, contact emergency services.

If you cannot tell which agency fits, start with the SEC for lending companies and the BSP for banks. Our guide on how to verify a lending company in the Philippines can help you identify the company behind the app.

What to Include in Your Complaint

Your details: full name, address, mobile number and email.
The respondent: the app name and, if known, the corporate name, address and registration or Certificate of Authority number.
Your loan details: date, amount, account or reference number and the status of your payments.
What happened: a clear timeline with dates, times and the numbers or accounts used.
Evidence: screenshots, call logs, messages received by others and loan records, labeled and numbered.
What you are asking for: for example, that the practice be stopped and investigated and your data removed from further use.
A sworn statement if the agency requires one.

Keep your complaint factual and calm, keep a copy of everything you send, and write down the reference number you receive. If you cannot identify the company, file anyway with what you know.

Protecting Yourself While the Complaint Is Pending

Do not erase evidence. Do not send more personal information or documents. Review app permissions and remove access to contacts, photos and messages if the app is still on your phone, after taking screenshots. Keep communication in writing where possible. Do not pay anyone claiming to settle the matter unless you have confirmed through the lender's official channels who they are. Tell people close to you that unusual messages may arrive. And keep paying what is legitimately due, if you can, through official channels: a complaint about how a lender collects does not cancel your loan. If paying is hard, contact the lender in writing to discuss options, using our loan repayment guide.

Choosing a Lender Before Problems Start

Most abuse can be avoided by choosing carefully: check who is lending, understand the full cost and terms, and read what the app asks to access. When you are ready to compare, begin with the loan app with low interest philippines that borrowers look at, and use our checklist in loan app scam warning signs before you share any documents.

FAQs

Can a collector contact my family or friends?

For lending and financing companies covered by SEC Memorandum Circular No. 18, contacting people in your contact list other than those you named as guarantors or co-makers is an unfair collection practice, even if you gave the app access to your contacts. Save any messages that were sent and include them in your complaint.

Is a complaint free of charge?

Published guidance indicates that consumers generally do not pay a fee to file complaints with agencies such as the SEC and the NPC, and you do not need a lawyer to file. Rules can change, so check each agency's website before filing.

Should I still repay while filing a complaint?

A complaint about harassment does not erase a debt you legitimately owe. If you can, continue paying through the lender's official channels and keep proof. If you cannot pay right now, tell the lender in writing and ask about options.

How long does a complaint take?

It varies by agency, the type of case and how complete your evidence is. Agencies do not guarantee outcomes or timelines, so be prepared for it to take weeks or longer, and keep records while you wait.

Written and maintained by Marissa Dela Cruz, Editor

Marissa researches and maintains every guide on Loan Low Interest, from loan costs and the effective interest rate to eligibility, repayment and borrower safety. She works from primary sources: Philippine laws such as the Truth in Lending Act and the Data Privacy Act, circulars and guidance from the SEC and the BSP, and each provider's own published terms and disclosure statements.

Loan costs and disclosure rulesEligibility and requirementsRepayment and late feesLender verification and safety

Every page follows our editorial policy and is rechecked when rules or terms change. See her full profile and guides.

For information only. This page is not financial or legal advice. Rules, rates and procedures change, so confirm current details with the lender and the relevant government agency.