THE Senate on Monday approved on third and final reading a proposal to regulate debt collection practices in the Philippines to protect debtors from abuse and harassment.
Senators unanimously passed Senate Bill No. 1744, with 20 voting in favor and none against the proposal that seeks to ban money lenders from using coercion and harassment tactics to collect repayment.
“With the passage of this measure, we take a significant step toward ensuring that financial access in our country is not built on fear and intimidation, but on fairness, accountability and respect for human dignity,” Senator Emmanuel Joel J. Villanueva said in a statement.
Money lenders are prohibited from threatening harm or using profanity when dealing with debtors, with public shaming deemed an unauthorized act, including repeated attempts to contact borrowers, according to the bill.
Lending companies that fail to comply with the bill’s provisions face administrative fines of up to P1 million, while debtors may pursue civil damages of up to P30,000 against collectors found in violation.
“This measure is not about encouraging people to evade their obligations,” Mr. Villanueva said. “While paying debt is an obligation, having debt is not a sin.” — Kenneth Christiane L. Basilio
