The Presidential Anti-Organized Crime Commission (PAOCC) announced on Thursday, August 14, their commitment to ending the abuse of Online Lending Applications (OLAs) that harass, intimidate, and abuse people.
Undersecretary Gilbert Cruz, PAOCC Executive Director, reminded the public to be cautious about who they approach when borrowing money in times of emergency.
Following reports of the increasing number of OLAs exploiting and harassing borrowers, Cruz emphasized that debt collection must always be in accordance with the law and carried out in a proper manner.
PAOCC encourages people to first approach government agencies that provide calamity loans, such as PAG-IBIG, SSS, and GSIS, and to report abusive lending apps.
Although there is a process and waiting involved, these agencies offer low interest rates and clear terms. Banks and cooperatives can also be approached for systematic and legal loans.
According to Cruz, before using lending apps, make sure that the company is registered, has clear billing terms, and has a good reputation.
He also stressed the importance of avoiding OLAs that lack clear contracts, have excessively high interest rates, or engage in harassment. Think carefully and don’t rush when choosing the right option that suits your ability to repay.
“Sa oras ng pangangailangan, ang tamang loan ay solusyon–hindi pabigat,” Cruz said.
Moreover, Senator Juan Miguel “Migz” Zubiri, said at Thursday's hearing of the Committee on Games and Amusement, that some loan apps are allegedly linked to online gambling platforms.
“The BSP should also be aware of the online lending apps. Because they are using it, both the legal and illegal, for these online gaming sites. Pag natalo na po kayo, lalabas yung app, meron kayong pwedeng utangan,” Zubiri stated.
He also called the abusive lending apps “as nothing but loan sharks”.
The senator also stressed that these apps often take advantage of users who have exhausted their funds on gambling sites, urging the Bangko Sentral ng Pilipinas (BSP) to step in and address the issue.
