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Excessive / Undisclosed APR (Online Lending)

Effective annual percentage rate — including processing fees, insurance, and other charges — far exceeds what was advertised or the BSP Circular 1133 cap.

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With Amount Disputed

Legal Basis in the Philippines

  • • RA 3765 (Truth in Lending Act) — lender must disclose the true APR including all fees before loan signing
  • • BSP Circular 1133 (2021) — caps effective interest rate on consumer loans and credit cards at 24% per annum (2% per month)
  • • SEC Memorandum Circular 3 (2022) — online lending platforms must display effective interest rate prominently in the app

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Relevant guides

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Step-by-step, with the exact BSP intake channels

How to file a BSP consumer complaint — online and on paper

Step-by-step guide to filing a complaint with the Bangko Sentral ng Pilipinas — BSP Online Buddy, consumer email, and the paper Consumer Assistance Mechanism form.

Step-by-step, citing SEC MC 18 (2019) and the SEC I-Message Mo portal

How to file a SEC complaint against an online lending app

Step-by-step guide to filing a Securities and Exchange Commission complaint against a Philippine online lending app — SEC MC 18 (2019), evidence checklist, and the SEC I-Message Mo portal.

RA 10173, NPC Circular 16-01, and the privacy.gov.ph filing form

How to document a data-privacy violation for an NPC complaint

How to document a Philippine data privacy violation for an NPC complaint — RA 10173, NPC Circular 16-01, evidence pack, screenshots, and the filing path.

The BSP dispute path for GCash and Maya, step by step

How to get your money back from a wrong or unauthorized e-wallet transfer

Step-by-step guide to recovering money from a wrong or unauthorized GCash/Maya transfer — the in-app dispute, the provider's FCPAM, BSP-CAM escalation (RA 11765, BSP Circular 1169), and small claims.

Frequently asked — Excessive / Undisclosed APR (Online Lending)

What is the maximum legal interest rate for online loans in the Philippines?

BSP Circular 1133 (2021), extended by Circular 1165 (2023), caps consumer-loan effective interest at 6% per month nominal (24% per annum) and total cost at 15% per month for short-term, low-value loans. Courts may strike rates beyond this as unconscionable under Civil Code Art. 1306 (Medel v. CA).

Are online lending apps required to disclose APR?

Yes. RA 3765 (Truth in Lending Act) requires written disclosure of the effective APR before loan signing; SEC MC 3 (2022) further requires online lending platforms to display the effective interest rate prominently in the app.

How do I prove the APR exceeded the cap?

Compute (interest + processing fees + insurance + service charges) ÷ principal × 12. Save the loan disclosure (required under RA 3765) and the in-app fee breakdown screenshots; file with SEC EIPD if the lender is SEC-registered.

Pwede bang ibalik ang sobrang singil ng online lender?

Oo. Sa ilalim ng RA 11765 §4(g) at BSP Circular 1160, ang anumang sobrang singil sa disclosed na rate ay dapat irefund sa loob ng 15 business days. Ang BSP Circular 1133 cap ang ginagawang basehan ng 'sobrang singil'.

Can I sue for predatory interest?

Yes. Civil Code Art. 1306 lets courts strike unconscionable rates; Medel v. CA (1998) and subsequent cases have voided 5%–10% per-month rates. Small claims (≤ ₱1,000,000) is available without a lawyer per A.M. No. 08-8-7-SC.

Common questions

How do I file a complaint against an online lending app?What is the maximum legal interest rate in the Philippines?How long does an SEC complaint take?Can I be jailed for not paying an online loan?How do I know if an online lending app is registered with the SEC?What can I do about an unregistered online lending app?

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