Solon wants shady online lenders probed

By Butch Fernandez @butchfBM

SENATE Majority Leader Emmanu- el Joel Jose Villanueva filed Senate Resolution 641 paving the way for an inquiry into unauthorized and unregistered online lending platforms victimizing hundreds of vulnerable Filipinos.

The Villanueva Resolution was prompted by rising cases reported to his office involving transactions through digital platforms, noting that there has also been an increase in abusive collection and debt recovery practices by some companies.

“Our office has been receiving hundreds of complaints from people who were harassed, intimidated, and shamed by the collecting agents of these online lending platforms for being unable to pay their loans on time,” the Majority Leader said.

“We need to put a stop to this inhumane and unethical practice and make sure that our kababayans are truly protected,” Villanueva added.

The Majority Leader reminded that measures should be in place and properly implemented to guarantee that consumers are only transacting with registered and authorized online lending companies to protect their interest and general welfare.

He recalled that early this year, the Securities and Exchange Commission (SEC) revoked the Certificates of Registration of 2,084 lending and financing companies that failed to secure their Certificates of Authority (CA) and cancelled the CA of 39 financing and lending companies due to various violations.

In a number of cases, Villanueva noted that some lending firms unduly increase the interest rates and other charges for failure to pay on schedule.

At the same time, some collectors also hurl “expletives and violent language” at the debtors to force them to pay.

Villanueva also asked the appropriate Senate committee to look into reports that some online lending platforms are engaging in irresponsible data harvest- ing that violate their clients’ right to privacy and safe and secure transactions.

Republic Act (RA) 11765 (Financial Products and Services Consumer Protection Act) provides that financial service providers are prohibited from employing abusive collection or debt recovery practices against their financial consumers.

In addition, RA 7394 (Consumer Act of the Philippines) specifically provides for the promotion of “fair, honest and equitable relations among parties in consumer transactions.” Meanwhile, RA 3765, or the Truth in Lending Act, mandates that lenders must be honest regarding the finance and other related charges that they impose on borrowers, and to make them aware of the true cost of credit.

“Our people should be protected against deceptive, unfair, and unconscionable acts and practices, including abusive collection and debt recovery practices,” Villanueva said adding that “debtors deserve to be treated fairly and with dignity.”

BIR removes 26, suspends 2 employees from

BUREAU of Internal Revenue Commissioner Romeo D. Lumagui Jr. revealed that the BIR has removed 26 and suspended two employees since last year. These numbers show how the BIR is committed to discipline members of its ranks pursuant to Lumagui’s pillar of integrity and professionalism of the institution and its employees, a statement from the BIR read.

“As we transform the BIR into an institution of integrity and excellence, we have removed 26 and suspended 2 erring employees. Keep in mind that you have no business working for the BIR if you fail to meet our standards for ‘integrity and profes-