NBI Raids Online Lenders Amid Harassment Reports

Responding to a surge of complaints, NBI Director Jaime Santiago oversees a raid on online lenders suspected of abusive debt collection practices and predatory lending. The investigation was triggered by over 15,000 reports.

NBI Raids Online Lenders Amid Harassment Reports

By Wilma N. Yamzon – Thenationweek.com  

July 16, 2025

MANILA, Philippines – The National Bureau of Investigation (NBI), in coordination with the Presidential Anti-Organized Crime Commission (PAOCC), stormed on Tuesday (July 15, 2025) the headquarters in Pasig City of an online lending app allegedly harassing borrowers.

The operation was triggered by over 15,000 complaints detailing the company’s alleged ruthless and abusive debt collection tactics, raising red flags about predatory lending practices.

Authorities have accused the lending platform of exploiting the financial hardships of many Filipinos, offering quick cash solutions wrapped in deceptive terms that trap borrowers in a relentless cycle of debt and intimidation.

The lending app was not immediately identified pending investigation.

“The sheer volume of complaints uncovers a disturbing trend of unethical and potentially illegal conduct, a calculated strategy to instill fear and shame among borrowers,” PAOCC Executive Director Gilberto D.C. Cruz said.

The investigation zeroes in on allegations that the app’s collection agents routinely resorted to abusive methods, including:

• Vulgarity and Coercion – Borrowers have recounted experiences filled with foul language and high-pressure tactics.

• Violent Threats – Claims have surfaced that collectors threatened physical harm when borrowers fell behind on payments.

• Unauthorized Contact Access – The company is accused of intruding into borrowers’ contact lists without consent, bombarding their friends and family with shaming messages.

“These apps prey on the desperation of Filipinos grappling with poverty, offering a false sense of immediate relief while inflicting lasting financial and emotional scars,” according to the PAOCC.

The sting led to the seizure of electronic devices such as laptops, smartphones, SMS blast servers, and a trove of registered SIM cards.

Investigators believe these tools were used for the company’s communication with borrowers and the execution of its alleged abusive tactics.

A forensic examination of the seized items and equipment is underway to find the full extent of the wrongdoing.

“This raid signifies a crucial step in shielding Filipinos from the harmful practices of unscrupulous online lenders,” NBI Director Jaime Santiago told reporters.

“We are dedicated to nurturing a fairer financial landscape for all,” he said.

The outcome of the probe could pave the way for future actions against similar online lending platforms and the formulation of stricter regulations, an official said.

Online lending applications in the Philippines may face legal repercussions for breaching the Data Privacy Act if they unlawfully access and exploit borrowers’ personal information, particularly contact lists, for harassment or debt collection.

The National Privacy Commission (NPC) had previously scrutinized and penalized several such applications for the following violations:

• Unauthorized Access and Use of Personal Information – Apps that invade borrowers’ contact lists without consent and leverage that information to pressure third parties (friends, family, employers) into debt repayment can be charged with violating the Data Privacy Act.

• Harassment and Threats – Utilizing personal information to intimidate or threaten borrowers or their contacts represents a serious infringement, prompting the NPC to impose fines and halt data processing for offending apps.

• Debt Shaming and Reputation Damage – Online lenders may face charges for revealing personal information or loan details on social media or other platforms to tarnish a borrower’s reputation.

• Extortion and Coercion – Should online lending apps resort to threats or coercion to recover debts, they can be prosecuted under the Data Privacy Act, along with facing additional criminal charges.

Remedies

Borrowers who suspect their data privacy rights have been compromised can lodge a complaint with the National Privacy Commission (NPC).

If the violations involve threats, harassment, or defamation, individuals can also report the incidents to the Philippine National Police Anti-Cybercrime Group or the NBI Cybercrime Division.

The explosion of online lending platforms (OLPs) in the Philippines since 2016 has been propelled by the accessibility of affordable smartphones, instant micro-loans, and the viral nature of social media. However, this rapid expansion has led to a significant spike in consumer complaints regarding exorbitant interest rates and penalty fees, alongside aggressive—often abusive—collection practices through calls, texts, and mass messages to borrowers’ entire contact lists.

The issue now stands at the intersection of securities regulation, privacy law, consumer protection policies, criminal statutes, and evolving legal precedents.

NPC Shuts Down 26 Online Lending Companies

On October 21, 2019, the National Privacy Commission (NPC) announced a ban on the processing of personal data by 26 online lending applications, as part of its ongoing crusade against public shaming of borrowers by these lenders.

In an order dated October 18, 2019, the NPC stated that the operators of these 26 mobile apps failed to respond to allegations made by complainants. Despite the apps remaining available for public download and use, the NPC deemed it necessary to impose a ban, labeling them a “continuing threat to the rights and freedoms of data subjects.”

To safeguard the rights of complainants and the public interest, the Commission ordered a halt to the processing of personal data until the cases are resolved. The entities behind the following applications were instructed to cease operations: Cash Bus, Cash Flyer, Cash Warm, Cashafin, Cashaku, Cashope, Cashwhale, Credit Peso, Flash Cash, JK Quickcash Lending, Light Credit, Loan Motto, Moola Lending, One Cash, Pautang Peso, Pera Express, Peso Now, Peso Tree, Peso.ph, Pesomine, Pinoy Cash, Pinoy Peso, Qcash, Sell Loan, SuperCash, and Utang Pesos.

The operators of these applications were mandated to immediately terminate their online lending activities and ensure their apps are no longer accessible for download, installation, or use. They were also directed to cease all processing of personal data, including activities outsourced to third parties, and to refrain from using information from phonebooks, directories, and contact lists, as well as from disclosing false or unwarranted information and employing intrusive methods of personal data processing.

The NPC is currently collaborating with the National Telecommunications Commission and Google LLC to ensure compliance with the terms and conditions of their platform.