The app charged me more than I borrowed — is that legal?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
For a covered small loan (unsecured, ₱10,000 or less, term up to 4 months), the total of all interest, fees, charges, and penalties can never legally exceed 100% of the amount you borrowed — the total-cost cap under SEC MC 3, s. 2022 and BSP Circular 1133. So a covered ₱5,000 loan can never legally cost you more than ₱5,000 on top of repaying the ₱5,000 principal, no matter how long it stays unpaid. If a lending or financing company or its app has already collected more than double the principal on a covered loan, that is a documentable violation you can report to the SEC and demand back.
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Frequently asked
Does the 100% cap include penalties?
Yes. BSP Circular 1133 states the 100% total-cost cap applies to all interest, other fees and charges, AND penalties, regardless of how long the loan has been outstanding. On a covered loan the lender cannot use late penalties to push your total charges past double the principal.
What if my loan was over ₱10,000 or longer than 4 months?
The fixed 100% cap does not apply, but you are still protected: every finance charge must have been disclosed in writing (RA 3765), and courts routinely reduce interest and penalties they find unconscionable — see /answer/what-is-the-maximum-legal-interest-rate-in-the-philippines.
How do I get the excess back?
Send a written demand citing the MC 3 (2022) total-cost cap, then file with the SEC's Financing and Lending Companies Department (imessage.sec.gov.ph). Under RA 11765 the provider must act on your written complaint within 15 business days; keep your disbursement record and every repayment receipt as proof.
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