6 companies, 30 individuals face raps for abusive loan collection scheme

Department of Justice (DOJ) FILE PHOTO

MANILA, Philippines — Six companies, including three lending firms, and more than 30 individuals are facing complaints before the Department of Justice (DOJ) for reported abusive ways of collecting payments from borrowers.

Atty. Oliver Leonardo, Director of the Enforcement and Investor Protection Department of the SEC, said the companies and the individuals are facing complaints for violation of Republic Act 9474 or the Lending Company Regulation Act, and RA 11765, or the Financial Products and Services Consumer Protection Act.

“Ang set up mayroon silang office, maraming ahente na tumatawag, kumukuntak sa pamamagitan ng software, na pag ikaw hindi nagbayad may mga death threats, may pagmumura, pagbalandra ng mukha sa social media nung mga nangutang,” Leonardo told reporters after filing the complaints.

(They have a setup with an office, numerous agents making calls, reaching out through software, and if you don’t pay, they send death threats, curse at you, and publicly shame those who borrowed money on social media.)

He said Business Process Outsourcing companies included in the complaint were also doing activities that only the duly registered lending companies are allowed to do.

“Yung pagpa-process ng utang at pangongolekta part and parcel yan ng isang registered lending company kaya kinasuhan din natin sila ng paglabag sa Lending Company Regulation Act,” Leonardo explained.

(The processing of loans and debt collection is an integral part of a registered lending company, which is why we also filed a lawsuit against them for violating the Lending Company Regulation Act.)

Of the more than 30 individuals included in the complaint, five are Chinese.

“Ito yung mga foreign nationals, particularly Chinese, ayon sa aming talaan, mga records, sila po ang nagpapatakbo, sila ang may-ari, at minsan ‘yung mga korporasyong involved dito,” he said.

(These are the foreign nationals, particularly Chinese; according to our list records, they are the ones operating, they are the owners, and sometimes the corporations involved in this.)

Leonardo said if found guilty, they may be fined as much as P2 million and imprisoned of up to five years.

The official also appealed to those who may have been victimized by abusive lending companies and their agents to seek help from the authorities.

“Tayo ay nakikiusap sa ating mga kababayan na kung meron man kayong karanasan sa ganitong pamamahiya, pambabastos, harassment and abusive collection practices maghain lang po ng reklamo sa ating financing company and lending company division,” he said.

(We are appealing to those who may have been victimized by harassment, humiliation, and other abusive collection practices to file a complaint with us at the financing company and lending company division.)

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JPV