Probe abusive lending firms — solon

Senator Raffy Tulfo on Wednesday urged his colleagues in the upper chamber to investigate the abusive debt collection practices of lending companies in the country.

Tulfo filed Senate Resolution 746 directing the appropriate committee to "conduct an inquiry, in aid of legislation, on the rampant unfair debt collection practices of lending companies" to further strengthen measures that would protect consumers' right to privacy, security, and property.

Tulfo lamented that these lending companies allegedly harass borrowers and utilizing abusive means to collect debts from borrowers.

Some lending companies, he said, even post libelous and defamatory remarks on social media of buy and sell groups, collecting payment from random contacts of their borrowers and sending coffins and death threats.

Tulfo cited provisions of Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act, that specifically prohibit financial service providers from making threats to take action against their clients.

The law also prohibits the practice of contacting persons on the borrower's contact list, other than those who were named as guarantors or co-makers of the loan.

Despite the foregoing laws and regulations, Tulfo said, an "alarming number of lending companies failed" to disclose their online lending platforms and "employ abusive debt collection practices to the detriment of consumers."

Tulfo said most lending companies also commit significant violations of Republic Act 10173, or the Data Privacy Act of 2012, and are facing numerous complaints filed with the National Privacy Commission.

"There's a need for an investigation to solve the rising number of complaints against abusive lenders," he said.