DOJ: Online shaming of delinquent borrowers a crime

The Department of Justice (DOJ) has warned online lenders that they may face criminal charges for threatening, harassing and publicly shaming clients who failed to settle their debts on time.

In a public advisory, Charito Zamora of the Office of Cybercrime told individuals who had fallen victim to illegal debt collection system that they may file cases against online lending firms for violation of several laws.

“This [is] in response to the increasing number of reports received and endorsed to [us] involving unfair debt collection practices and cyber harassment by online lending companies,” Zamora said.

“Unfair debt [collection] practices include the use of obscenities, insults or profane language, publication of the names and other personal information of the borrowers, and the use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a borrower,” she added. INQ