The Senate Subcommittee on Banks, Financial Institutions & Currencies has launched an investigation into alleged unethical debt collection practices by lending companies. Leading the probe, Senator Raffy Tulfo is focusing on SEC Circular 18-2019, a regulation that allows online lending firms to share borrower information with collection agencies.
Tulfo raised concerns that this provision may be enabling harassment and other abusive collection strategies, stressing the need for stronger consumer protections. The investigation seeks to address mounting complaints from borrowers who claim to have experienced aggressive and unfair debt recovery methods.
To ensure a thorough examination, the Senate panel will hear testimonies from key stakeholders, including officials from the Securities and Exchange Commission (SEC), lending companies, and consumer rights advocates. The goal is to assess whether existing regulations are adequate in safeguarding borrowers and, if necessary, recommend policy reforms to prevent exploitation in the lending sector.
