As the country observes Privacy Awareness Week, it is essential to reaffirm that protecting privacy does not exist in a vacuum. For millions of Filipinos, especially small borrowers, privacy violations in debt collection are often instances of abuse that the Securities and Exchange Commission (SEC) confronts head-on.

In recent years, the proliferation of online lending and financing platforms has exposed consumers to aggressive and often exploitative collection practices. These include accessing and contacting a borrower’s phone book, harassing third parties, sending threats and publicly shaming borrowers under the guise of consent to sensitive personal information given through mobile applications. However, consent does not mean impunity.

Consent obtained through contracts of adhesion in mobile lending apps is often abused. NPC Circular 2023-04 states that consent must be informed, specific, necessary, and not excessive. Even if these formalities are observed, such consent cannot override rules prohibiting unethical conduct, particularly those enforced by the SEC.

In other words, even if a borrower clicks “agree,” this does not give the lender carte blanche to weaponize that information. It cannot justify harassment, it does not authorize reputational harm, and it certainly does not override the law.

The financing and lending industry plays a crucial role in driving financial inclusion and supporting Filipinos with legitimate needs, whether for emergency expenses, business capital, or everyday essentials. It empowers individuals, supports small enterprises, and provides liquidity across all sectors of society.

But with that power comes responsibility.

The SEC recognizes this industry’s vital role in economic growth and national development.

However, this must always be balanced with borrowers’ rights. Legitimate collection efforts cannot come at the expense of dignity, privacy, or the rule of law.

While the National Privacy Commission (NPC) issued NPC Circular 2023-04, which clarifies the guidelines on valid consent under the Data Privacy Act of 2012 (RA 10173), the SEC remains at the forefront of enforcing ethical conduct in lending and financing.

Central to its mandate of investor protection is to protect borrowers and investors from unfair business practices, such as unfair debt collection practices of finance and lending companies.

Under SEC Memorandum Circular 18, series of 2019, financing and lending companies are strictly prohibited from employing abusive collection practices, regardless of any consent supposedly granted. This includes, among other things, contacting individuals on the borrower’s contact list, using threats, intimidation, or social media shaming, or sending harassing materials such as coffins or obituary-style notices.

These are not merely privacy breaches — they constitute violations of investor and consumer protection laws, and the SEC has the authority to revoke these entities’ Certificates of Authority.

As the SEC continues to perform its mandate of investor protection, it remains firm that unethical collection practices have no place in our financial system. The Commission remains committed to protecting borrowers and upholding standards that ensure compliance with the law.

The lending industry must clean up its ranks, ensuring ethical and lawful practices. On the other hand, borrowers should know and assert their rights to protect themselves from abuse.

Meanwhile, all stakeholders must understand that the SEC is watching closely, and it will take decisive action against those who violate the law.