SENATE.GOV.PH

A SENATOR on Sunday said he will file a resolution that will call for an inquiry into the proliferation of online lending operators that are not registered with regulatory agencies such as the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC).

In a statement, Senator Sherwin T. Gatchalian said the probe aims to address possible gaps in government policies “following the emergence of online cash loan services of unlicensed lenders.”

Mr., Gatchalian, vice chair of the committee on banks, Financial Institutions and Currencies, said his office continues to receive complaints from victims of online lending companies and applications.

Majority of these claim to have experienced grave threats, intimidations and public shaming from collectors.

Mr. Gatchalian said there were even victims who reportedly committed suicide while others received death threats.

“Magsilbing aral din sana ito sa mga naghahanap ng mapag-uutangan nang mabilis. Dapat marunong silang kumilatis kung kaduda-duda ang pamamaraan ng pagpapautang ng isang kumpanya (This should also serve as a lesson to those looking to get a quick loan. They should check if the company’s lending process is suspicious),” he said.

The senator also reiterated his push for the enactment of his Senate Bill No. 1366 or the Fair Debt Collection Practices Act. 

The senator noted that the SEC in December revoked the certificate of authority of an online lending firm found to have engaged in unfair debt collection practices. The National Privacy Commission also recommended the prosecution of an online lending app operator for harassing and publicly shaming borrowers who failed to pay and for violating the data privacy law. — Vann Marlo M. Villegas

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