A total of 117 Filipino employees of a lending company were arrested for allegedly being involved in abusive debt collection schemes in Makati City.
A joint law enforcement operation was conducted on Friday, Jan. 31, under the Warrant to Search, Seize, and Examine Computer Data (WSSECD) issued by Atty. Karla Regina D. Valera of Makati City Regional Trial Court Branch 147. The operation was carried out by the National Bureau of Investigation (NBI), Securities and Exchange Commission (SEC), and Presidential Anti-Organized Crime Commission (PAOCC).
According to PAOCC, the operation was conducted after some victims of online lending applications reported abusive collection tactics and predatory practices of the lending companies from which they had borrowed money.
The victims said they were burdened with extremely high interest rates and hidden fees, making it difficult for them to repay their loans.
Some of them also received death threats if they delayed payment, even by just a day. The lending company also sent emails to their workplaces, accusing them of being scammers.
They were also posted on Facebook, and their relatives were texted, urging them to convince them to settle their debts.
Authorities said the victims were encouraged to take out loans from the company because of its quick and easy application process.
“Papasukin ka nila through apps and then kapag nakapasok ka na doon it's very easy to get the loan. Ia-approve kaagad nila ‘yan kaya lang ang una nilang hinihingi this time is yung contacts mo and yung photo gallery mo. They will expose yung picture mo, picture ng kamag-anak mo, ng nga anak mo… and then even the address (They will allow you in through apps, and once you're in, it's very easy to get a loan. They will approve it immediately, but the first thing they ask for is your contacts and photo gallery. They will expose your pictures, as well as those of your relatives and children, even your address),” PAOCC executive director Usec. Gilbert Cruz said.
“Hindi ka pa nag g-go sa pangungutang mo, sa loan mo pero pinapadala na nila yung pera sa account mo. Hindi ka na makakahindi, may utang ka na (You may not be completely sure if you’ll go through with the loan, but they’re already sending the money to your account. At that point, you can’t back out and you’re already in debt),” NBI agent on case atty. Rick Espino added.
Authorities added that the incorporators of the lending app may be connected to POGO.
"May possibility na yung ibang mga dating nag o-operate ng POGO is nag switch na sa ganitong loan scamming (There is a possibility that some of those who previously operated POGO have switched to this kind of loan scamming)," Cruz said.
Meanwhile, police said the arrested individuals may face charges for violating the Data Privacy Act, unauthorized processing of personal information, cyber libel, harassment, and grave threats.