MANILA — CIBAC Party-List Representative Bro. Eddie Villanueva has introduced House Bill No. 7736, also known as the proposed Fair Debt Collection Practices Act, which seeks to establish clear rules for debt collection and protect borrowers from abusive tactics. The measure mirrors a Senate proposal sponsored by Senator Joel Villanueva, reflecting growing concern over complaints against lending firms and online financing platforms.

Rep. Villanueva emphasized that while credit access is crucial for financial inclusion, the rapid growth of digital lending has also led to troubling reports of misconduct.

“These practices include harassment, public shaming, intimidation, misuse of personal data, and threats of criminal prosecution, which undermine human dignity and erode public trust in the financial system,” he said.

The bill outlines specific prohibitions against harassment, threats, excessive communication, public disclosure of debts, and deceptive claims of arrest or imprisonment. It also mandates transparency in loan costs, requiring online lenders to provide built-in calculators so borrowers can fully understand repayment obligations before committing.

Villanueva clarified that the measure is not intended to hinder lawful debt recovery.

“Importantly, the measure does not interfere with legitimate debt recovery or judicial remedies. It ensures that collection efforts remain lawful, proportionate, and respectful of due process. While debts may be enforceable, harassment, humiliation, and coercion are not,” he added.

The proposal also introduces civil remedies for victims of abusive collection practices and holds creditors accountable for violations committed by their agents or contractors.

CIBAC underscored that this initiative is part of its broader consumer protection agenda, urging Congress to act swiftly to safeguard ordinary Filipinos — particularly low-income and first-time borrowers — from exploitative lending practices.

📷 CIBAC