Gatchalian criticizes online lenders' unfair debt collection

Senator Sherwin Gatchalian criticized unfair debt collection practices by some online lending companies, citing complaints from borrowers who received funeral flowers and bullets.

Gatchalian stated that while these firms have made it easier for people to take out loans, they harass clients who miss payments even for a day, emphasizing the urgent need to pass Senate Bill No. 818 or the Fair Debt Collection Practices Act.

The senator urged the Securities and Exchange Commission (SEC) to impose stricter requirements on the registration of online lending companies, noting that the minimum capitalization is only P1 million, despite the number of apps operated by these firms.

Gatchalian highlighted that the bill aims to prohibit violent threats, public shaming, oppressive conduct, use of obscene language, and disclosure of borrowers' names.

The senator emphasized that debt collection should be fair and legal, not a threat or intimidation towards borrowers' lives, as current regulations are insufficient to protect consumers from abusive practices.