The Senate approved on third and final reading Senate Bill No. 1744, or the Fair Debt Collection Practices Act, a proposed measure that seeks to regulate debt collection activities and protect borrowers from abusive, harassing, and misleading practices.

Senator Joel Villanueva, the bill’s sponsor, said the measure clearly defines and bans harassment and other unfair practices in debt collection.

"With the passage of this measure, we take a significant step toward ensuring that financial access in our country is not built on fear and intimidation, but on fairness, accountability, and respect for human dignity," he added.

Villanueva noted that the Presidential Anti-Organized Crime Commission (PAOCC) received 47,144 complaints related to abusive online lending applications between August 2024 and January 2026.

He also cited data from the National Privacy Commission, which recorded 2,244 complaints against online lending apps from 2018 to 2025, most of which involved unauthorized access, misuse, or disclosure of borrowers’ personal information.

"What we have seen in recent years is deeply alarming. Borrowers are hunted, shamed, and threatened simply for borrowing small amounts of money for their daily needs. Mr. President, this is not debt collection. This is harassment," Villanueva said.

The bill identifies several prohibited acts in debt collection, including threats of violence or criminal harm, the use of insulting or obscene language, public shaming or unauthorized disclosure of personal information, repeated or unreasonable communications, contacting employers, coworkers, or unrelated third parties, misrepresentation or intimidation, and collecting any amount beyond the principal obligation without explicit authorization in the agreement.

Villanueva stressed that while borrowers have a responsibility to settle their debts, this should not justify humiliating or degrading them.

"This measure is not about encouraging people to evade their obligations. However, I want to emphasize that while paying debt is an obligation, having debt is not a sin.

"Debt collection must remain lawful, fair, and humane. It (SB 1744) prohibits abusive, deceptive, and harassing collection practices while protecting the dignity and privacy of borrowers. At the same time, it ensures that legitimate lenders can still collect debts through lawful and ethical means," he added.