CIBAC Party-List Rep. Bro. Eddie Villanueva filed House Bill No. 7736 or the proposed \u201cFair Debt Collection Practices Act,\u201d a measure that seeks to regulate debt collection practices and protect borrowers from abuse, harassment, and deception.<\/p>\n\n\n\n

The bill serves as House counterpart of similar Senate measure being sponsored by Senator Joel Villanueva, which aims to address the rising complaints against financing companies, lending firms, and online lending platforms about unfair and oppressing debt collection practices.<\/p>\n\n\n\n

Rep. Bro. Eddie stressed that while access to credit is vital for financial inclusion, the rapid expansion of lending \u2014 especially through online platforms \u2014 has been accompanied by widespread reports of abusive and unfair collection methods.<\/p>\n\n\n\n

\u201cThese practices include harassment, public shaming, intimidation, misuse of personal data, and threats of criminal prosecution, which undermine human dignity and erode public trust in the financial system,\u201d he said.<\/p>\n\n\n\n

The measure establishes a rights-based framework that clearly defines allowable and prohibited debt collection conduct. It expressly bans harassment, threats, repeated and indiscriminate calls and messages, public disclosure of debts, misuse of personal data, and false representations involving arrest or imprisonment. The measure also requires loan cost transparency, including a built-in loan calculator for online lending platforms, so borrowers can clearly see the true cost of credit before entering into any agreement.<\/p>\n\n\n\n

The CIBAC solon clarified that the bill protects borrowers without blocking lawful collection.<\/p>\n\n\n\n

\u201cImportantly, the measure does not interfere with legitimate debt recovery or judicial remedies. It ensures that collection efforts remain lawful, proportionate, and respectful of due process. While debts may be enforceable, harassment, humiliation, and coercion are not,\u201d added Rep. Bro. Eddie.<\/p>\n\n\n\n

The proposed law also provides civil remedies for victims of abusive collection practices, and imposes solidary liability on creditors for violations committed by their agents and\/or contractors.<\/p>\n\n\n\n

CIBAC underscored that the measure is part of its continuing consumer protection agenda and urged swift congressional action, emphasizing the need to safeguard ordinary Filipinos \u2014 especially low-income and first-time borrowers \u2014 from exploitative lending and collection practices.#<\/p>\n","protected":false},"excerpt":{"rendered":"

CIBAC Party-List Rep. Bro. Eddie Villanueva filed House Bill No. 7736 or the proposed \u201cFair Debt Collection Practices Act,\u201d a measure that seeks to regulate debt collection practices and protect borrowers from abuse, harassment, and deception. The bill serves as House counterpart of similar Senate measure being sponsored by Senator Joel Villanueva, which aims to […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"templates\/template-cover.php","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-2433","post","type-post","status-publish","format-standard","hentry","category-press-release"],"yoast_head":"\n