Senator Sherwin Gatchalian cautioned the public on Sunday about using online lending applications. He asserted these services could cause more harm than good to individuals in need of financial assistance.
In a recent radio interview with DZBB, Gatchalian revealed that he has received a slew of complaints from borrowers who experienced harassment and exorbitantly high-interest rates of 10 to 40 percent from these online lending platforms.
Even more troubling, he said, is that some lending firms have reportedly accessed and hacked personal data of borrowers and their contacts. There have been alarming reports of intimidation tactics used by lenders against borrowers who default on their loans.
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“There were reports that those who failed to pay are being threatened. Sometimes, they received wreaths. They were even able to monitor the daily activities of those people who could not pay their loans. This is alarming and scary,” Gatchalian expressed.
The Senator advised caution and skepticism towards lending agencies that provide loans too easily. He recommended that the public should check the legitimacy of lenders with the Bangko Sentral ng Pilipinas (BSP), which maintains a complete list of legitimate lending firms.
Furthermore, Gatchalian noted that the public could also approach the Securities and Exchange Commission, the Department of Information and Communications Technology, and the National Privacy Commission for help with issues concerning lending firms.
In light of the rising concerns against online lending apps and companies, Gatchalian plans to call for an investigation through the Committee on Banks, Financial Institutions, and Currencies.
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