By Ade S. Fajardo
Online lending companies, Fast Cash Global Lending Inc., Unipeso Lending Company Inc., and Fynamics Lending Inc., have been summoned by the National Privacy Commission (NPC) over reports that they have accessed and used mobile phonebooks of their borrowers without the latter’s consent.
Using data in the phones of their alleged victims, these online lenders notified people in the contact list that they had been named as co-makers or character references by borrowers.
The NPC has also issued summons by publication to 67 more operators of online lending applications. They are the subject of data privacy complaints but they have so far hidden their identities and business addresses.
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These online lenders have been shown to target low income earning employees who are strapped for cash and are desperate for immediate relief.
Unscrupulous lenders access the borrower’s photo gallery and use private or protected images and send offensive or threatening messages. Borrowers have reported getting blackmailed with personal photos.
Sensitive photos are a goldmine to online loan sharks who use high-pressure collection tactics to recover loans with very high interest rates.
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Shady online lenders advertise easy access to cash via social media platforms like Facebook and YouTube. The application process is simple and straightforward — a couple of identification cards and the borrower’s social media account. The borrower also needs to download the lending app.
However, once installed, the lenders require access to almost all that is contained in the borrower’s phone. Those data are not used legitimately. Rather they are harassment tools for exaction of usurious amounts.
Oftentimes the victims have to borrow money from other online lenders to satisfy aging payables, thus further burying themselves in debt.
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Holding these online harassers to account presents a distinct challenge.
“Our investigation team is committed in attending to all the complaints filed against online lending apps. However, to date, only the Uniform Resource Locator and the developers behind the 67 apps are identifiable. They have no known company name and business address, nor has anyone appeared before the commission to represent them. Our investigators are aware that some of these online lending apps are just existing in the cloud. With the defendants being unknown, summons by publication is needed in order to comply with the rules on acquiring jurisdiction and the principle of due process,” said Privacy Commissioner Raymund Enriquez Liboro.
Republic Act No. 10173, otherwise known as the Data Privacy Act of 2012, was enacted to address abuse in digital spaces and shield personal information from illegal access and circulation.
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The NPC has also summoned faceless lenders Happy Cash, Hello Papaya, Cashalo, and Lalapeso.
People are encouraged to know their rights. Only data necessary for credit assessment may be collected. It is illegal to use contact lists for online vilification or shame campaigns. Imagine having your friends and relatives receive hurtful and repetitive messages about you.
It is also unlawful to steal online identity for online purchases made without the borrower’s knowledge and consent./WDJ