5 Things to Think About Before Using Online Lending Apps (OLAs)

Online lending apps promise fast cash, but they often come with a hidden cost—your peace of mind. Many Filipinos have faced harassment, embarrassment, and financial stress after using these apps. Before you hit “Apply,” take a moment to think about these five points.

1. Is it an Emergency?

Ask yourself if you truly need the loan right now. Emergencies, like medical bills or urgent repairs, might justify borrowing. But if the money is for something less critical, like shopping or leisure, it’s better to wait. Borrowing for non-essentials can put you in a financial hole.

Loans from online lending apps can feel convenient, but their interest rates and penalties can quickly add up. Paying back the loan might be harder than you think, especially if your income is already tight. Consider your priorities and weigh if the expense is worth the potential stress.

2. Do you understand the costs?

Online lending apps often highlight low interest rates, but the real cost can be much higher. For example, an advertised 3% monthly rate might sound reasonable, but when compounded annually, it becomes an overwhelming 50% or more.

Besides interest, watch out for hidden fees like service charges, processing fees, and penalties for late payments. Some apps deduct fees upfront, meaning you get less money than you borrowed but still owe the full amount. Always read the terms carefully and calculate the total repayment. If the terms seem confusing or unfair, think twice before proceeding.

3. What about your privacy?

Online lending apps often require access to your phone’s contacts, gallery, and files. While this seems harmless, it gives them significant power over you. Many apps use this data to shame borrowers who miss payments by sending messages to their friends, family, and even colleagues.

Imagine your tita, your high school crush, or your barangay captain getting a text about your unpaid loan. It’s not only humiliating—it can damage relationships. Protecting your privacy is crucial. If an app demands too much access, consider it a red flag. No loan is worth risking your personal data and reputation.

4. Have you explored safer options?

Online lending apps should be your last resort. There are other ways to get the financial help you need without risking harassment or sky-high interest rates.

• Ask Family or Friends: It might feel awkward, but borrowing from people you trust is safer than dealing with predatory apps.
• Cooperatives and Banks: These options take longer but often have better terms and lower interest rates.
• Freelance Work or Selling Items: Try offering a service or selling things you don’t need. Even small amounts can help bridge the gap.

Taking time to explore these options can save you from long-term stress and financial trouble.

5. Are you ready for the risks?

Using an online lending app comes with risks. Some apps harass borrowers with threats or lawsuits. Others might sell your personal data to third parties. Even apps that seem legitimate can resort to shady practices.

Before borrowing, check if the app is registered with the Securities and Exchange Commission (SEC). Apps registered with the SEC must follow strict rules to protect borrowers. Also, read reviews and feedback from other users to learn about their experiences. If the app has a history of harassment or unreasonable fees, avoid it.

Here are only a few of these OLAs’ horror stories that redditors have shared:

Think Before You Borrow

Borrowing from online lending apps may solve short-term problems but can lead to bigger issues if you’re not careful. Always explore safer options, understand the risks, and have a solid plan for repayment.

If you do decide to use an app, choose one that’s SEC-registered and trustworthy. Borrow only what you can afford to repay, and don’t give unnecessary access to your personal data. Protect your peace of mind and your reputation.

Fast cash isn’t always worth the stress it brings. Stay smart and stay safe.

For more real-life stories and lessons, visit the r/ola_harassment subreddit. Learn from others and avoid falling into the same traps.

Where to Report Online Lending App Harassment

If you’re facing harassment from online lending apps in the Philippines, it’s crucial to report these incidents to the appropriate authorities. Here’s how you can take action:

1. Securities and Exchange Commission (SEC)

The SEC regulates lending and financing companies in the Philippines. If you encounter unfair debt collection practices, you can file a complaint through their official channels.

• Complaint Form: Access and submit the complaint form via the SEC’s official website.

2. National Privacy Commission (NPC)

For violations related to data privacy, such as unauthorized access to your personal information, the NPC is the appropriate body to contact.

• Email: complaints@privacy.gov.ph
• Website: Visit the NPC’s official website for more information.

3. Philippine National Police Anti-Cybercrime Group (PNP-ACG)

If the harassment involves cybercrime elements, such as online threats or identity theft, the PNP-ACG can assist.

• E-Complaint Desk: File a complaint online through their e-complaint platform.
• Email: acg@pnp.gov.ph
• Hotline: (02) 8414-1560 or 0998-598-8116

4. National Bureau of Investigation (NBI) Cybercrime Division

For severe cases involving cyber harassment, the NBI Cybercrime Division can conduct investigations.

• Email: crd@nbi.gov.ph
• Online Reporting: Submit reports through the NBI’s official website.

5. Bangko Sentral ng Pilipinas (BSP)

If the harassment involves banks or financial institutions under BSP supervision, you can file a complaint through these channels:

Contact the BSP Financial Consumer Protection Department:

• Call: (02) 5306-2584 or (02) 8708-7087
• Email: consumeraffairs@bsp.gov.ph
• Use the BSP Online Buddy (BOB) chatbot: www.bsp.gov.ph
• Message the BSP on Facebook Messenger: @BangkoSentralngPilipinas
• Text: 21582277 (available for Globe subscribers only)

If you’re not satisfied with how your concern is handled, you can escalate the matter to the BSP’s Consumer Protection and Market Conduct Office for further assistance.

Important Steps to Take

• Document Everything: Keep records of all communications, including messages, call logs, and any evidence of harassment.
• Stay Calm: Do not engage with the harassers. Instead, focus on gathering evidence and reporting the incident.
• Seek Legal Advice: Consult with a legal professional to understand your rights and the best course of action.

By reporting these incidents, you not only protect yourself but also help in curbing unethical practices by online lending platforms in the Philippines.