SEC files complaint vs. 6 companies over 'abusive' debt collection

The Securities and Exchange Commission (SEC) filed on Tuesday with the Department of Justice (DOJ) a criminal complaint against six companies for alleged abusive ways of collecting debt from borrowers.

In an ambush interview, Atty. Oliver Leonardo said they are filing a criminal complaint against three lending companies, one financing company, and two business process outsourcing (BPO) companies.

The companies are accused of violating the Lending Company Regulation Act and the Financial Products and Services Consumer Protection Act.

“Meron silang office, maraming ahente, ‘yung mga tumatawag, ‘yung mga kumo-contact, sa pamamagitan ng kanilang mga software,” Leonardo said.

(They have an office with many agents. They’re the ones calling the borrowers using computer software.)

Leonardo said that if the borrowers fell behind on their payments, the firms would threaten them over the phone or publicly humiliate them.

According to Leonardo, they also filed a complaint against 28 people, including five Chinese nationals.

“Ito po yung mga foreign nationals, particularly Chinese, ayon sa aming talaan, mga records, sila po ang nagpapatakbo, sila ang may-ari, at minsan ‘yung mga korporasyong involved dito, mga foreign din,” he said.

(Based on our records, these foreign nationals, particularly Chinese, are the ones who are operating these companies; they are the owners, and sometimes the corporations involved are also foreign.)

He said they may be fined as much as P2 million and imprisoned for up to five years.

“Contacting the debtor’s list or contact list... is already a violation and the manner in which they contact them using profane or obscene language also violates,” DOJ spokesperson Mico Clavano told reporters. 

Meanwhile, Justice Undersecretary Raul Vasquez said the prosecution may go after the licenses of those involved.

“The more meaningful ones we believe should be going after their registration and their license to do business here,” Vasquez said.

“Or if there would be foreigners that are involved, then Immigration issues could be raised as well because their stay here is subject to their compliance with the laws of the Philippines,” he added. —KBK/VBL, GMA Integrated News