Money lending apps allegedly misuse debtors' personal info to shame them

By Ryan Arcadio

Money lending applications are allegedly using personal and private data to publicly shame people who do not settle their debts on time, as per a statement released by the National Privacy Commission (NPC) last Tuesday, May 21.

The commission has received 485 complaints of harassment against the online lending applications, with at least 235 of those cases formally pursued by complainants and are now the subject of NPC hearings, chairperson Raymund Liboro said in a press conference.

Identical complaints have also been filed by other users of similar applications for the past few months. NPC explained how the applications gain access to the user's personal information and how they operate when the settled date of payment is not observed.

First, the applications allegedly require access to the information photos, contact lists, files saved in the user's phone before the online loan can be processed.

If the user does not settle the balance on time, the operators of the application begin to text people from the user's contact list, mentioning the full name of the user and the amount owed to the lenders.

Borrowers reportedly said the public shaming had caused them emotional stress.

"Complainantssaytheharassmentandshamingstartedwhentheyfailedtopaytheirbalancesontime.Thepeoplebehind thelendingappcalledortextedtheircontactlistabouttheirinabilitytoreturnthemoney,causingthemembarrassment and emotional stress," Liborosaid.

The hearings of the cases have already begun, and the commission is hoping for the cooperation of the parties accused.

"Itisvitalthatwealsoheartherespondent'ssideofthestoryandwewouldhighlyappreciateitiftheycooperate,"Liboro said.

InNPC'sFacebookpostlastMay21,severalcommentersnamedtheallegedlendingappsasPesoloan,FastCash,Atome PH,GoodLoanandQcash,amongothers.Intheircomments,peopleeitherlistedthenames,taggedtheFacebookpages of the apps, or posted screen shots of text messages sent by some of thelenders.

Iftheaccusedcompaniesarefoundtobeguiltyoftheallegedactions,theymayfacetemporaryorpermanentbanfrom operating.

The commission may also award damages to the individuals affected by the public shaming and could refer the cases to the Department of Justice for criminal prosecution.

Answer the following questions:

1.How should the National Privacy Commission (NPC) act regarding thismatter?

2.Do you think these money lending applications violated the privacy of the borrowers?Explain.