Lenders operating online apps that can be installed in smartphones are prohibited from harvesting personal information, such as phone and social media contact lists, for harassing delinquent borrowers, the National Privacy Commission (NPC) said in a circular it published today, October 19.
The commission issued Circular No. 20-01 in response to numerous complaints that online lenders were illegally using personal data of clients and those of others on their contact lists, causing damage to their reputation and violating their rights as data subjects.
The harassment and shaming of delinquent borrowers before relatives, friends and colleagues persist despite separate orders last year from the NPC and the Securities and Exchange Commission (SEC) to shut down errant online creditors.
The circular comes into effect 15 days after its publication in the Official Gazette or two newspapers of general circulation.
All lending and financing companies in possession of their borrowers’ contact lists in whatever form in violation of the guidelines shall dispose of the information in a secure manner that would prevent further unauthorized processing, access, or disclosure to any other party or the public, the NPC said.
