A CONGRESSIONAL probe is being sought to bring to light lending companies’ abusive ways of collecting debts such as coercion, shaming and threatening of clients through online channels.
In filing Senate Resolution No. 746, Senator Rafael “Raffy” T. Tulfo wants an end to the practice of harassing borrowers and invading their privacy. “Despite foregoing laws and regulations, there is still an alarming number of lending companies failing to disclose their online lending platforms and employing abusive debt collection practices to the detriment of consumers,” Mr. Tulfo said.
Citing a Securities and Exchange Commission (SEC) circular, the senator stressed that financial service providers are barred from threatening their clients as well as contracting third-parties irrelevant to a borrower’s debt. In May, the SEC said entities found guilty of abusive debt collection can be charged and, if convicted, face up to P2 million in fines and five years imprisonment. — John Victor D. Ordoñez
