Sen. Gatchalian refiles bill to curb abusive online lending

Sen. Sherwin Gatchalian has refiled the Fair Debt Collection Practices Act as one of his priority measures for the 20th Congress, warning abusive online lending firms that they will be held accountable under the proposed measure.

The bill aims to protect borrowers from harassment, intimidation, and psychological abuse by unscrupulous online lending apps (OLAs), prohibiting violent threats, obscene language, and public disclosure of borrowers' names during debt collection.

Violators under this measure will face administrative penalties including fines up to P60,000, as Gatchalian emphasized that debt collection practices should not involve abuse or threats towards vulnerable Filipinos in financial distress.

The senator cited a case involving a Valenzuela City resident who took his own life after repeated threats and harassment from an online loan app, highlighting the need for stricter regulations on OLAs.

On Monday, Gatchalian filed the Fair Debt Collection Practices Bill which proposes to ban debt collectors from engaging in abusive practices such as threatening violence or using obscene language.