Economy

Finance, fintech associations back curbs on debtor harassment by online lenders

FINANCIAL ORGANIZATIONS said they support a National Privacy Commission (NPC) crackdown on online lenders collecting excessive information from app users for use in shaming the applicants in the event of non-payment.

The Fintech Alliance.PH and Philippine Finance Association said creditworthiness can be determined lawfully with reasonable data disclosures by applicants.

Online lenders must “refrain from exploiting borrowers by using the borrowers’ personal data to shame and coerce them into paying their loans through unauthorized and unfair use of their personal data,” the groups said in a statement Wednesday.

The NPC last month ordered the immediate takedown of four online lending apps that have been the subject of complaints for alleged unauthorized use of personal data.

Borrowers have complained that online lending apps JuanHand, Pesopop, CashJeep, and Lemon Loan have been using users’ personal data to harass them to collect debt. The companies operating the apps are being investigated for violations of the Data Privacy Act.

The financial groups said that online lenders must comply with the law, adding that using mobile app permissions to store client contact lists and photo galleries is unnecessary and unreasonable.

“We call on these non-compliant lending entities to use lawful and reasonable methods in evaluating loan applicants’ creditworthiness as well as in debt collection practices by upholding data subject rights without resorting to unfair debt collection practices and harassment of borrowers such as the use of insults or profane language, violent threats or false representation and unnecessarily exposing their borrowers’ personal data to unauthorized persons,” the groups said.

The NPC is investigating more than 200 online lending apps available for download. — Jenina P. Ibanez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

Disclaimer:

TheProficientInvestor.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top