Some loan apps linked to online gambling, says senator
MANILA, Philippines — As senators begin deliberations on bills that would regulate or ban online gambling, the issue of online loan apps has also been raised, with Sen. Juan Miguel Zubiri calling them “loan sharks.”
During the hearing, Zubiri questioned the Bangko Sentral ng Pilipinas (BSP) on the extent to which they can regulate payment methods used on gambling sites. While the BSP has already ordered electronic wallets to unlink from online gambling platforms, Zubiri raised concerns about another related issue.
“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,” Zubiri said.
Zubiri said that there are cases in which, once a person loses, a pop-up ad appears suggesting they can borrow from a loan app.
The senator described it as a “shame campaign.”
However, BSP Deputy Governor Mamerto Tangonan said that it is not the central bank that regulates loan apps, but the Securities and Exchange Commission (SEC). This means the BSP can only regulate financial institutions such as banks.
Zubiri questioned this, saying that loan apps charge interest.
“I think the BSP should get into this because they are loan sharks, nothing but loan sharks,” he said.
He added that there have been cases where loan sharks have resorted to threatening people with physical violence.
The lawmaker opened the possibility of crafting a law on this to enable the BSP to regulate online lending apps.
Sen. Erwin Tulfo called these online lending apps “bastos (audacious)”.
“Walang hiya. Papahiyain ka,” Tulfo said. (No shame. But they will shame you.)
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