Gatchalian bats for fair debt collection bill anew amid pandemic

A bill that would protect borrowers from unfair and abusive debt collection practices should be in place, especially as many Filipinos are burdened with the economic impact of the COVID-19 pandemic, Senator Sherwin Gatchalian said Wednesday.

"Lalo na ngayon na pandemya, nakaka-receive tayo ng mga text tungkol sa pagpapautang, tungkol sa mabilis na kumuha ng utang... Ang iba dito ay mababa ang interes pero ang kapalit naman nito ay 'yung harassment na ginagawa kapag naniningil," Gatchalian, vice chair of the Senate Committee on Economic Affairs, said in an interview on Dobol B sa News TV.

"Karamihan dito ay gumagamit ng dahas o violence para magbayad ka. May mga ibang bangko rin at ibang lending institutions na binibenta 'yung kanilang receivable sa mga kompanya an gumagamit ng agresibong paraan para kumolekta," he added.

Senate Bill No. 1366 or the proposed “Fair Debt Collection Practices Act," filed by Gatchalian last year, seeks to prohibit and eliminate the use of abusive, deceptive, and unfair debt collection practices.

Under the measure, creditors are also mandated to keep confidential all borrowers’ data except when borrower gives written consent.

It also proposes a maximum penalty of P30,000 as redress, aside from any actual damage sustained by the borrower. 

Nonetheless, he said borrowers should also be responsible in paying their debts.

"Kung ikaw ay mangungutang, bayaran mo 'yan... Pero mayroon tayong legal na proseso sa pagkokolekta at sa pagproseso po na kung 'di nakakabayad po ang mga nangungutang ay puwedeng dalhin sa korte o puwede pong ihabla," he said. —KG, GMA News