Online lending apps (OLAs) might seem like a lifeline for quick cash, but miss a payment, and they’ll make your life a living hell. These vultures don’t just nag—they’ll bombard you with fake court orders, stalk your friends and family on social media, show up at your doorstep, and some even dare to send funeral wreaths to scare you. Senate Bill No. 818, the Fair Debt Collection Practices Act, is here to slam the brakes on this despicable nonsense.

Senator Win Gatchalian underlined the unhinged tactics that these online lenders employ just to collect from delinquent clients.

“Online lenders have made it easier for people to borrow money. However, just one day of missed payment leads to threats and harassment. They shame borrowers in their communities and sometimes even send death threats or bullets,” Gatchalian said.

Senate Bill No. 818, or Fair Debt Collection Practices Act, seeks to prohibit debt collectors from engaging in harassment, oppression, or abuse while collecting debts. It specifically bans the use or threat of violence, obscene language, and the disclosure of borrowers’ identities.

“Lenders have the right to collect debts, but they must do so properly and legally. Collection practices should be fair and not involve threats or intimidation,” he emphasized.

The low capitalization requirement for lending firms, which stands at just Php 1M regardless of how many online lending apps they operate, is also a source of potential issues, according to Gatchalian.