MARCH 10, 2026 — The Philippine Senate has finally taken a decisive step against abusive debt collection practices with the approval of Senate Bill No. 1744, the Fair Debt Collection Practices Act. On March 9, senators voted unanimously — 20-0-0 — to pass the measure on the third and final reading, signaling a rare moment of unity in protecting Filipinos from harassment and intimidation.

Senator Joel Villanueva, who sponsored the bill, said, “What we have seen in recent years is deeply alarming. Borrowers are hunted, shamed, and threatened simply for borrowing small amounts of money for their daily needs. Mr. President, this is not debt collection. This is harassment.” 

The numbers back him up. From August 2024 to January 2026, the Presidential Anti-Organized Crime Commission logged a staggering 47,144 complaints against abusive online lending apps. Meanwhile, the National Privacy Commission received 2,244 complaints from 2018 to 2025, mostly tied to unauthorized access and misuse of personal data. 

These figures paint a disturbing picture: debt collection in the digital age has often crossed into outright abuse.

The bill sets clear boundaries. Prohibited acts include threats of violence, obscene language, public shaming, repeated untimely calls, contacting employers or unrelated third parties, and misrepresentation. Collectors are also barred from charging anything beyond the principal obligation unless explicitly authorized. 

In short, the law tells collectors: collect fairly, or don’t collect at all.

Villanueva stressed that the measure isn’t about letting borrowers off the hook. 

“This measure is not about encouraging people to evade their obligations. However, I want to emphasize that while paying debt is an obligation, having debt is not a sin,” he argued. 

For millions of Filipinos who rely on small loans to survive daily expenses, this law could be a game-changer. It recognizes that debt is part of life, but dignity should never be collateral. By outlawing harassment, the Senate is pushing for a financial system built not on fear, but on fairness.

The question now is how effectively this law will be enforced. After all, rules are only as strong as the will to implement them. But for borrowers who’ve endured humiliation and threats, this bill offers hope that the balance of power is finally shifting.

Do you think this new law will really change how debt collectors operate in the Philippines, or will they just find another way to keep the harassment going?

(Image: Senate of the Philippines | Facebook)