SEC Memorandum Circular No. 18 (2019): Prohibition on Unfair Debt Collection Practices

Summary

SEC Memorandum Circular No. 18, Series of 2019, prohibits financing and lending companies — including their online lending platforms — from engaging in unfair debt-collection practices. The Circular bars use or threat of violence; obscene or profane language; communication of debt to persons other than the borrower's family or household; contacting persons in the borrower's contact list other than co-makers, guarantors and references; false representations such as posing as government agents or attorneys; publication of borrower information on social media for shaming; and contact between 6:00 a.m. and 10:00 p.m. only. It defines the administrative penalties for each violation.