What collection practices are prohibited under SEC MC18?

SEC MC No. 18 (2019) prohibits: (1) threatening violence or criminal prosecution not based on actual legal grounds, (2) using obscene or profane language, (3) contacting your employer, family, neighbors, or contacts without your consent, (4) falsely representing themselves as government officials, (5) calling at unreasonable hours (before 6am or after 10pm), (6) publishing your name as a debtor on social media or public lists, (7) accessing your contact list or sending messages to contacts.

What if an online lending app messaged my contacts saying I owe money?

This is a direct violation of SEC MC18 and also violates the Data Privacy Act (RA 10173) for unauthorized use of your contact data. File immediately with: (1) SEC PH at cad@sec.gov.ph, (2) National Privacy Commission at privacy.gov.ph. Screenshot every message. This is one of the most commonly prosecuted violations — companies lose their SEC license for this.

Can debt collectors call my boss or coworkers?

No. Contacting your employer, supervisor, or coworkers without your explicit written consent is prohibited under SEC MC18. The only permitted contact is with you directly, or with a person you designated as an emergency contact in your loan application. Violations should be reported to the SEC and your employer should be informed it is illegal.

Are there limits on when debt collectors can call me?

Yes. Under SEC MC18, collection calls are restricted to: Monday–Saturday, 6:00 AM to 10:00 PM only. No calls on Sundays or holidays. Calls outside these hours are a recordable violation. Log every call with the date, time, caller name, and what was said.

What if the app accessed my phone's contacts without permission?

This violates the Data Privacy Act (RA 10173) and SEC MC18. The National Privacy Commission (NPC) has levied fines against multiple online lending apps for exactly this. File a complaint at privacy.gov.ph. The NPC can order the app to stop, delete your data, and pay damages.

Can a lending company sue me for not paying?

Yes, a lender can file a civil case for collection of money. However, non-payment of debt is not a criminal offense in the Philippines — you cannot be arrested for it. If threatened with arrest for debt, this itself is a violation of SEC MC18 (false representation of legal action). Know the difference: civil liability (you can be sued for money) vs. criminal liability (requires a separate criminal act).

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Know Your Rights

Loan Collection Harassment: SEC MC18 and Your Rights

SEC Memorandum Circular No. 18, series of 2019 prohibits abusive, unfair, and unconscionable debt collection practices by SEC-registered lending and financing companies. Violations carry criminal penalties.

This is informational only, not legal advice. Consult a lawyer for your specific situation. · Last revised: 2026-05-03

Ano ang gagawin MO NGAYON / What to Do TODAY

1
Log and screenshot every violation
Create a harassment log: date, time, caller name/number, what was said, any witnesses. Screenshot threatening SMS or chat messages. If they messaged your contacts, ask those contacts to forward the messages to you. Save everything — each incident is a separate violation worth documenting.
2
File complaints with SEC and NPC
SEC complaint: email cad@sec.gov.ph with subject 'MC18 Violation — [Company Name]'. Attach your log and screenshots. NPC complaint (for contact-list abuse): go to privacy.gov.ph → File a Complaint. Both agencies can act within 30 days and may suspend the company's license.
3
Send a cease-and-desist letter
Use our Letter Builder to generate a cease-and-desist demand referencing SEC MC18. Send via email (with read receipt) and registered mail to the lending company. This creates a paper trail and often stops harassment within days — lenders know a formal demand signals an informed borrower.

Mga Tanong at Sagot / Frequently Asked Questions

Legal Basis / Mga Batas at Regulasyon

Mga Tool / Related Tools

Build a Cease-and-Desist Letter →File an SEC Complaint →Loan APR Calculator →Data Privacy Rights →

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Disclaimer: This is informational only, not legal advice. Consult a lawyer for your specific situation. Content is provided for informational and educational purposes only. Citations link to official Philippine government sources.