What are the penalties for an illegal online lending app?
Last updated: 2026-07-10 · Educational content; not legal advice.
Short answer
An online lending app that operates without an SEC Certificate of Authority is criminally liable under RA 9474 §12: a fine of ₱10,000 to ₱50,000 or imprisonment of 6 months to 10 years, or both. Separately, unfair debt collection under SEC Memorandum Circular 18 (2019) draws administrative fines up to ₱1,000,000 per violation plus suspension or revocation of the Certificate of Authority, and misuse of your personal data violates RA 10173 (imprisonment and fines up to ₱5,000,000 under NPC rules). LabanPH shows you which of these to invoke and files the complaint.
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Frequently asked
Which penalty applies to harassment specifically?
Harassment falls under SEC MC 18 (2019): administrative fines up to ₱1,000,000 per violation and suspension or revocation of the lender's Certificate of Authority. If your data or contacts were misused, RA 10173 penalties apply on top.
Can individual officers be held liable?
Yes. RA 9474 §12 reaches officers who knowingly conduct an unauthorized lending business or make false statements in filings, and RA 10173 imposes criminal liability on responsible persons for unlawful data processing.
Do these penalties get my money back?
Administrative and criminal penalties punish the lender; to recover overcharged amounts you separately demand a refund/recomputation (RA 3765, RA 11765) or sue in small claims for ₱1,000,000 or below (A.M. 08-8-7-SC).
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