Lawmakers have introduced House Bill 10366 to reinforce legal safeguards for borrowers and clamp down on abusive practices by online lending platforms.
Filed on Wednesday by Akbayan Party-list Representatives Chel Diokno, Perci Cendaña, and Dadah Ismula, alongside Dinagat Islands Representative Kaka Bag-ao, the bill targets predatory online lenders accused of harassment, data misuse, hidden fees, and unfair debt collection.
Diokno emphasized that the measure responds to a relentless surge in complaints from vulnerable borrowers.
“Even before I became a lawmaker and until now, complaints against abusive online lending apps keep on coming at an alarming pace. These apps exploit borrowers through harassment, public humiliation, and other abusive collection practices,” Diokno said.
“No Filipino should have to endure these simply because they fell on hard times,” Diokno said.
The proposed legislation guarantees clear loan terms, data privacy, and mandatory assessments of a borrower’s ability to repay before approval.
To prevent predatory debt traps, HB 10366 caps the total payable amount—including interest and penalties—at 200% of the original principal. It strictly bans hidden fees, automatic loan renewals, public shaming, and threats of baseless criminal charges.
Violators face prison sentences of three to six years and fines ranging from ₱100,000 to ₱1 million, with steeper penalties for severe harm or illegal operations.
Additionally, the bill proposes establishing a Victim Compensation Board under the Securities and Exchange Commission (SEC) to award damages and refunds to victims, while granting the agency expanded powers to block and remove illegal lending apps.