Crackdown on abusive online lending apps launched
MANILA, Philippines — The government has launched a formal campaign to crack down on online lending applications, or OLAs, that take advantage of Filipino users, following a sharp rise in complaints over harassment, fake court orders and exploitative lending practices.
In a statement on Monday, June 16, the Presidential Anti-Organized Crime Commission (PAOCC) reported receiving more than 13,000 complaints in April and May alone.
These lending apps have caused “financial, psychological, and reputational injury to thousands of Filipinos through their threats and harassment,” the commission said.
“These abusive online lending operators have caused serious harm to thousands of Filipinos,” said PAOCC Chief Gilberto Cruz. “Under the President’s directive, we are going after these groups to protect our people and ensure they are held accountable.”
Multi-agency action. The crackdown has already resulted in the banning of 27 OLA administrators and 89 online scam loan pages on February 25, according to the PAOCC.
The campaign’s official launch on Monday was attended by officials from the Philippine National Police–Criminal Investigation and Detection Group (PNP-CIDG), the Securities and Exchange Commission (SEC), the National Telecommunications Commission, and the PAOCC itself.
About 100 OLA victims were present to give sworn statements and testimonies to the PNP-CIDG.
The SEC, meanwhile, reminded the public not to engage with online lenders operating without proper registration or licensing.
It warned that doing so could expose borrowers to abusive collection tactics, data privacy breaches, and excessive fees. The SEC said it had already ordered the removal and blocking of several OLAs found to be operating illegally.
Tactics of harassment. Authorities noted that some OLAs have used forged court orders to pressure borrowers into repayment.
Several social media posts have shown alleged court documents bearing Regional Trial Court logos and judges’ names, demanding that individuals settle their debts.
In April, Supreme Court Chief Justice Alexander Gesmundo warned the public against falling for such fake court notices and advised Filipinos to verify all supposed judicial issuances.
Usage soars, risks rise. The campaign comes amid a surge in digital loan app usage. According to a May 2025 study by digital lender Digido, the number of “unique users” of lending apps rose from 47.46 million to 67.84 million, while active users increased from 7.7 million to 11.78 million.
Filipinos reportedly spent around 1.54 billion seconds on such apps in 2024.
Bangko Sentral ng Pilipinas Deputy Governor Bernadette Romulo-Puyat noted that while digital lending supports financial inclusion, it underscores the need for stronger financial literacy and consumer safeguards.
“While this can support inclusion, it also highlights the need for stronger financial literacy and consumer protection — especially with the growing use of personal and BNPL (buy now, pay later) loans,” Romulo-Puyat said in a report by Philstar.com.
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