Akbayan Party-list Reps. Chel Diokno, Perci Cendaña, Dadah Ismula, and Dinagat Islands Rep. Kaka Bag-ao filed House Bill 10366 (or “Anti-Online Lending Abuse Act”) to stop abusive online lending apps. The measure aims to protect borrowers from harassment, hidden charges, and unfair debt collection.
The bill sets clear borrower rights. Loan terms must be transparent. Lenders must respect data privacy and follow fair collection rules. They also need to check repayment ability and get informed consent before releasing loans.
A debt cap is included. Total repayment, covering principal, interest, fees, and penalties, cannot go over 200 percent of the original loan. The bill bans hidden charges, misleading terms, automatic rollovers, harassment, public shaming, and contacting third parties. Threats of criminal cases without basis are also prohibited.
Violators face tough penalties. Jail time ranges from 3 to 6 years, plus fines from ₱100,000 to ₱1 million. Stricter punishment applies if borrowers suffer serious harm or if operators run illegal lending apps.
The measure also creates the Victim Compensation Board for Online Lending Abuses (VCBOLA) under the SEC. This board will manage a fund to give refunds, damages, attorney’s fees, and protection orders for victims. The SEC will also have the power to block unlicensed lending apps and work with other agencies to shut down illegal operators.
Also Read: Philippine gov’t targets abusive online lending apps over harassment and privacy violations
If passed, the bill will strengthen borrower protection, stop abusive lending practices, and push for fair treatment in the fast-growing online lending sector.
