The Presidential Anti-Organized Crime Commission (PAOCC) reported receiving 47,446 complaints against companies operating online lending applications between August 2024 and January 2026, many of which involve allegations of abusive collection practices and rapidly increasing debt.
Officials said a common concern raised by borrowers is how their debts continue to grow instead of decreasing, leaving many struggling to keep up with payments.
Borrowers Struggle as Debts Continue to Grow
PAOCC Executive Director Benjamin Acorda Jr. said some borrowers find themselves trapped in a cycle where penalties and charges cause their loans to balloon beyond what they initially borrowed.
“What is painful about this is that there are reports that many of our fellow Filipinos are suffering from depression. They don’t know how to pay off their debts,” Acorda said during a press briefing in Camp Crame.
He added that there are cases where borrowers are unable to settle their obligations because their outstanding balances keep increasing.
Government Tightens Watch on Online Lending Platforms
To address the issue, PAOCC signed a memorandum of agreement with the Cybercrime Investigation and Coordinating Center (CICC), an attached agency of the Department of Information and Communications Technology (DICT).
The agreement aims to strengthen the government’s campaign against illegal online activities, including abusive practices tied to some digital lending platforms.
Authorities Target Illegal and Abusive Lending Practices
CICC Executive Director Aboy Paraiso said he has also met with officials from the Online Lending Association of the Philippines to discuss the issue and encourage responsible lending practices.
Paraiso noted that legitimate online lending applications can help stimulate economic activity and provide financial assistance to Filipinos in need. However, he warned that some companies operate without licenses or use manipulative systems and abusive collection tactics.
“These practices can lead to distrust in the system,” Paraiso said.
