The recent news about shaming and privacy violations by some online lending apps of borrowers who missed their payment schedules unearths the ugly side of credit collection.
At least 3 lending apps are now under investigation by the National Privacy Commission (NPC) as they were allegedly able to access mobile phone features like the borrower’s phone directory, camera, location, and text messages. Some of these apps even went to great lengths to contact a borrower’s relative, friend, and other contacts, exposing the debtor to public shaming. These actions clearly were in violation of the Data Privacy Act. The Securities and Exchange Commission (SEC) to-date has barred 30 illegal online lending firms from operating due to alleged unreasonable and abusive collection practices.
Continue reading “The ugly side of credit collection — shaming, harassment, and privacy violations”