Senator Sherwin Gatchalian on Wednesday, April 23 pushed for the passage of a bill seeking to eliminate the unfair debt collection practices of online lending companies.

In filing Senate Bill No. 818, or the proposed Fair Debt Collection Practices Act, Gatchalian said it is necessary to also protect the needs and the welfare of borrowers who have availed of loans from these online lending companies.

Gatchalian noted many of these borrowers experience severe harassment after availing of loans from these lending firms.

“Ang mga nagpapautang na ito, ginawa nilang mas madali nga para makautang ang mga tao. Pero isang araw lang na hindi makabayad, puro pananakot na ang ginagawa nila (These lending companies made it easier for people to borrow. But just one day of failing to pay their obligations, they resort to threatening them non-stop),” Gatchalian said.

“Pinapahiya pa sa komunidad at minsan nagpapadala pa ng korona ng patay o bala (They subject the borrower to shame in their community and or sometimes send them funeral flowers or bullet),” the senator said, citing numerous complaints received by his office.

SB No. 818 primarily prohibits a debt collector from engaging in any conduct to harass, oppress, or abuse any debtor in the collection of a debt.

The bill specifically prohibits the use or threat of violence, use of obscene or profane language, and disclosure of borrowers' names.

“Karapatan din ng mga nagpapautang na maningil pero dapat nasa wasto at tamang pamamaraan. Dapat makatarungan at legal yung pangongolekta at hindi pananakot at pagbabanta sa buhay (Lenders also have the right to collect debt, but this should be done in an appropriate manner. Debt collection should be done through justifiable and legal means and not through intimidation or threat),” he emphasized.

Gatchalian also called on the Security and Exchange Commission (SEC) to adopt more stringent requirements relating to the registration of online lending companies.

The Senate Committee on Ways and Means chairman noted that the minimum capitalization for lending companies is only P 1 million, regardless of the number of online lending apps (OLAs) that they are operating.

Currently, there are 117 lending and financing corporations and 181 OLAs registered with the SEC, he said.