Four online lending apps were ordered closed due to the unauthorized use of data of borrowers, the National Privacy Commission said Wednesday.
JuanHand, Pesopop, CashJeep, and Lemon Loan are under investigation for unauthorized use of personal data that resulted in the harassment and shaming of borrowers and for violations of the Data Privacy Act and other NPC issuances.
The companies may face jail time and fines for such violations, the Department of Justice said in an earlier warning.
To protect borrower data privacy rights, the NPC furnished orders to the National Telecommunications Commission for the removal of the apps on Google Play Store. The ban is effective until lifted by the commission.
According to the NPC, the apps have access to information on the borrowers' mobile devices such as contacts, location, media files, e-mails, and social media data from platforms like Facebook, Instagram, and Google that could be weaponized to harass and shame delinquent clients before contacts in order to collect debt.
“These online lending apps raised many red flags and the companies operating these apps demonstrate problematic data actions that expose borrowers to serious privacy risks and harms,” Privacy Commissioner Raymund Liboro said.
The four companies were given the opportunity to reply to the findings. Two failed to convince the commission why a ban should not be imposed while the remaining two did not file position papers.
The commission continues to investigate more than 200 OLAs available for download.
This is not the first time lending companies were warned for using unfair collection practices. Earlier this year, the Department of Justice said online lending companies may face criminal charges for such acts.
Such forms of harassment violate the Cybercrime Prevention Act (RA 10175), the Data Privacy Act (RA 10173), the Revised Penal Code and a memorandum circular from the Securities and Exchange Commission.
An online lending firm gaining unauthorized access to a debtor's contacts list may constitute illegal access under the Cybercrime Prevention Act. This could carry jail time of up to 12 years and fines of at least P200,000. Disclosure fetches jail time and fines of up to P1 million.
What do I do if I'm being harassed?
Apart from the NPC, he DOJ said borrowers can approach the National Bureau of Investigation-Cybercrime Division, the Philippine National Police-Anti-Cybercrime Group, and the SEC.
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