Manila, the Philippines – Lance, a 31-year-old man, has been receiving threatening messages and calls from online lending platforms since losing his job due to COVID-19 lockdowns. Accumulating close to one million pesos in debt on multiple platforms, he now faces relentless verbal abuse and threats. Many users like Lance feel they have been taken advantage of by these apps, which offer easy access to credit but often come with predatory practices.
The popularity of loan apps exploded during the pandemic, with millions of downloads in the Philippines. However, many users complain of being tricked into taking on more debt than they can handle. The Securities and Exchange Commission (SEC) has issued licences for over 140 digital lending companies, but some have been accused of unfair debt collection practices.
Users like Bobbie, a university student, have experienced harassment and threats after failing to make timely repayments. Despite regulations limiting interest rates, some platforms still charge exorbitant fees. The SEC has taken action against a few platforms, but many continue to operate unchecked.
Privacy concerns have also been raised, with some platforms collecting excessive data and exposing borrowers to privacy risks. The National Privacy Commission has investigated and ordered the takedown of some platforms for violating data protection laws.
Despite complaints and reports submitted to authorities, little action has been taken to address the exploitative practices of some lending platforms. The authorities acknowledge the challenges in regulating these apps but emphasize the importance of fulfilling debt obligations.
For victims like Bautista, founder of the United OLA Victims Movement, there is a need for more user-friendly complaints processes and stricter regulations to protect borrowers from predatory practices. The struggle against exploitative lending platforms continues, with victims calling for more accountability and support from the authorities.
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