Lawmakers introduced a new bill aimed at curbing abusive online lending practices. The proposal seeks to tighten regulations on digital loan providers, targeting issues such as harassment, hidden fees, excessive interest rates, and deceptive collection tactics.
Under the bill, lenders would be required to evaluate borrowers’ repayment capacity before approval, ensuring that loans remain affordable. The legislation also mandates full disclosure of all loan terms and the safeguarding of consumers’ personal data.
A compensation board would be established under the Securities and Exchange Commission to assist victims of predatory lending. The regulator would gain authority to block unlicensed online lending applications, enhancing oversight of the sector.
Violators of the new rules could face penalties including up to six years in prison and fines reaching one million pesos. The measures represent a significant effort to protect consumers in the rapidly growing online lending market.
