Manila: Senator Sherwin Gatchalian on Monday filed the Fair Debt Collection Practices Act, warning abusive online lending firms that they will be held fully accountable under the proposed measure once enacted. Gatchalian said the bill, one of his priority proposals for the 20th Congress, aims to protect borrowers from harassment, intimidation, and psychological abuse by unscrupulous online lending apps (OLAs).

According to Philippines News Agency, the senator emphasized the inhumane nature of debt collection practices involving threats and abuse, particularly targeting impoverished citizens who resort to borrowing out of necessity. Gatchalian highlighted a tragic incident involving a resident of Valenzuela City who committed suicide following persistent threats and harassment from an online loan app.

The proposed legislation prohibits debt collectors from employing harassment, violence threats, profane language, or publicly revealing a borrower's identity. It outlines administrative penalties for violators, including fines up to PHP60,000. This measure is part of Gatchalian's broader efforts to ensure financial consumer protection amidst the increasing popularity of digital lending platforms.