Senate urged to probe rise in number of illegal lending platforms online

File picture of Senator Joel  (Bibo Nueva España/Senate PRIB)

MANILA, Philippines — Senate Majority Leader Joel Villanueva urges the Senate to investigate the increase of unauthorized and unregistered online lending platforms.

He recently filed Senate Resolution 641, which sought to probe lending firms’ alleged “abusive collection and debt recovery practices” on the internet.

“As more and more Filipinos start to use the services of online lending platforms, there is a need to ensure that they are protected against deceptive, unfair, and unconscionable sales acts and practices, including abusive collection and debt recovery practices,” his resolution read.

The senator likewise underscored the need to set safeguards so that consumers transact only with authorized online lending companies.

The legislator called for an end to the alleged “inhumane and unethical practice” of harassing, intimidating, and shaming debtors who cannot pay loans on time.

Villanueva said some lending firms are illegally hiking interest rates and other fees for those who fail to pay their debt as scheduled.

He added that curses and vile language are reportedly being thrown at debtors to force them to settle their dues.

“Our people should be protected against deceptive, unfair, and unconscionable acts and practices, including abusive collection and debt recovery practices. Debtors deserve to be treated fairly and with dignity,” he said.

As of January 30, Security and Exchange Commission has stamped out 33 unregistered online lending platforms on Google Play Store.

SEC also canceled the registration of 2,084 lending and financing firms that failed to secure their certificate of authority (CA).

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APL/abc