NextGen Day

On September 15, 2021, Wednesday, the National Privacy Commission (NPC) and financial organizations “seriously” criticized certain online lending platforms’ collection of excessive information, such as storing their customers’ contact lists and picture galleries.

The NPC, Fintech Alliance.PH, the Philippine Finance Association, and other non-bank financing companies stated in a joint statement that the application (app) permissions used by certain online lending platforms on their mobile apps are “unreasonable and superfluous.”

The joint statement said, “Such conduct is unnecessary since an applicant’s creditworthiness may be established via other legal and reasonable methods.”

Non-compliant online lending companies also use their borrowers’ personal data to “shame and force them into paying their debts,” according to the report.

“We remind concerned digital lending players to follow the FinTech Alliance’s Code of Conduct and Ethics, as well as the Code of Collection Standards and Ethics.

The Philippine government and the Philippine Finance Association have developed and standardized industry standards to guarantee rigorous compliance while promoting consumer safety, according to the statement.

It said that while processing the personal data of their clients, finance companies must adhere to the Data Privacy Act of 2012 and associated legislation.

“Lending businesses must remember that they are always responsible for the personal information in their possession or control. As a result, they must develop and execute appropriate rules for managing borrowers’ personal data,” it said.

It urged non-compliant lending platforms to evaluate credit scores and collect debts using lawful and “reasonable” methods rather than harassing borrowers “through the use of insults or profane language, violent threats, or false representation, and unnecessarily exposing their borrowers’ personal data to unauthorized persons.”

On the NPC’s instructions, the Google Store removed four online lending applications, all of which were determined to be collecting “grossly excessive data” such as media files and social media data.

The directives were the latest in the NPC’s assault on internet lenders that breach their clients’ privacy rights.

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