The Securities and Exchange Commission (SEC), Department of Information and Communications Technology (DICT), and National Privacy Commission (NPC) have partnered to strengthen protection for borrowers against abusive online lending practices.
In a joint advisory released Tuesday, the agencies reminded lending companies to follow existing rules on handling borrowers’ personal data. This comes after reports that some online lenders have engaged in harassment, intimidation, public shaming, and misuse of personal information when collecting debts.
The agencies stressed that lenders are not allowed to access borrowers’ contact lists or contact people who are not listed as guarantors. Such actions may lead to harassment and unfair debt collection.
They also reminded lenders to properly secure, dispose of, and delete personal data once it is no longer needed. Borrowers should also be able to withdraw app permissions after their purpose has been fulfilled.
Meanwhile, the agencies urged borrowers to stay cautious when using online lending apps. They advised users to read privacy notices carefully, watch out for deceptive app designs, and avoid granting unnecessary permissions.
Borrowers were also told to get clear consent from their guarantors before listing them in loan applications.
