MANILA, Philippines — Reports of harassment and intimidation by online lending firms have prompted fresh calls in the Senate to regulate debt collection practices and protect borrowers from abuse.

Borrowers have complained of being publicly shamed, threatened, and even sent funeral wreaths or bullets after missing payments, prompting concern over the aggressive tactics of some digital lenders.

Senator Sherwin Gatchalian said the Senate continues to receive complaints from individuals who were allegedly harassed by online lending companies. 

Some borrowers were threatened with violence or humiliated in their communities for failing to pay on time, he said.

“Ang mga nagpapautang na ito, ginawa nilang mas madali nga para makautang ang mga tao. Pero isang araw lang na hindi makabayad, puro pananakot na ang ginagawa nila,” Gatchalian said in a report. 

“Pinapahiya pa sa komunidad at minsan nagpapadala pa ng korona ng patay o bala,” he said.

Gatchalian has filed Senate Bill No. 818 or the Fair Debt Collection Practices Act, which seeks to ban harassment, threats, and the use of abusive language by debt collectors. The measure also prohibits the disclosure of a borrower’s identity or personal information in the course of debt collection.

He said while lenders have the right to collect payment, this must be done through legal and just means—not through threats or intimidation.

The senator also urged the Securities and Exchange Commission (SEC) to tighten requirements for online lending companies, noting that firms can register with only P1 million in capitalization regardless of how many online lending apps they operate.

As of latest data, the SEC has registered 117 lending and financing corporations and 181 online lending applications.