Prohibition on Unfair Debt Collection Practices of Financing Companies (FC) and Lending Companies (LC)

August 19, 2019SEC MEMORANDUM CIRCULAR NO. 18-19TO:All Financing and Lending Companies   SUBJECT :Prohibition on Unfair Debt Collection Practices of Financing Companies (FC) and Lending Companies (LC) WHEREAS, the Commission has been receiving numerous complaints against Financing Companies (FCs) and Lending Companies (LCs) that allegedly harass borrowers and employ abusive, unethical, and unfair means to collect debts; WHEREAS, the Commission is aware of the practice of FCs and LCs of purposefully engaging the services of third party service providers (TPSPs) in their efforts to avoid liability for client harassment, by invoking the latter's separate juridical personality;WHEREAS, the Commission exercises regulatory and supervisory authority over FCs and LCs by virtue of Republic Act No. 8556, or the Financing Company Act of 1998, as amended, and Republic Act No. 9474 or the Lending Company Regulation Act of 2007;IN VIEW OF THE FOREGOING, without limiting the general application of the foregoing and without prejudice to the application of the New Civil Code, Revised Penal Code, Revised Corporation Code of the Philippines, Data Privacy Act, and other applicable laws and...