The Securities and Exchange Commission in Davao Region has documented an alarming 85 complaints from individuals who experienced severe harassment from illegal Online Lending Platforms (OLPs). This troubling trend highlights the growing risks faced by borrowers turning to unregulated digital lenders.
Victims Face Threats and Intimidation
According to Lawyer Katrina Ponco-Estares, regional director of SEC-Davao, her office had received 85 formal complaints from victims as of November 21, 2025. The primary issues reported included excessively high interest rates and various forms of harassment that crossed legal boundaries.
The harassment tactics employed by these illegal lending operations included death threats and intimidation directed not only at the borrowers themselves but also toward their family members and contacts listed in their personal information. Victims reported being targeted through persistent text messages and emails containing threatening language.
Estares revealed the emotional toll on victims, noting that "most of the complainants were crying while seeking help in our office." She emphasized that these documented cases represent only a fraction of the actual victims, as many lack the courage to come forward.
Easy Access Leads to Severe Consequences
The appeal of these illegal online lending platforms lies in their simplified application process. Unlike traditional financial institutions that require extensive documentation, these OLPs typically ask for minimal information:
- Borrower's name and personal details
- Desired loan amount
- Contact information from the victim's phone directory
Estares warned that this apparent convenience comes with dangerous consequences. Both the borrowers and everyone in their contact lists become targets for harassment when repayment issues arise. The regional director noted that many victims were initially drawn to these platforms precisely because of the easy access to quick cash with minimal requirements.
SEC Intensifies Crackdown and Public Awareness
The commission is ramping up its efforts to combat illegal online lending activities through multiple approaches. SEC-Davao has been actively disseminating information about the risks of unregistered OLPs, targeting both working professionals and students who might be vulnerable to these schemes.
Estares strongly advised the public to exercise extreme caution when encountering online lending services advertised on social media platforms, mobile games, and various websites. She clarified that legitimate lending and financing businesses, including those operating online, must register with the SEC and obtain secondary licenses before commencing operations.
A significant challenge in regulating these illegal operations is their lack of physical presence. "Most illegally operating online lending apps lack an actual office or ground personnel who can be held accountable," Estares pointed out, making enforcement particularly difficult.
The public is urged to verify the registration status of any online lending platform through the SEC's official website before engaging with their services. The commission continues to issue regular advisories listing unauthorized lending apps and websites to help consumers identify and avoid illegal operators.
This recent surge in complaints follows SEC-Davao's earlier report of 77 complaints related to illegal lending and financing activities across the region from January to June 2025, indicating a persistent problem that requires continued vigilance from both regulators and the public.
