In the Philippines, various legal measures are in place to combat loan sharking and safeguard borrowers from exploitative lending practices. Here’s an overview of the key legal frameworks and enforcement mechanisms designed to protect consumers:
Don’t overlook:
Top 10 Fast Online Loans in Philippines – A Valid ID is All You Need Updated in December 2024
| Rank | Lender Name & Application Link | Loan Amount | Loan Term | Interest Rate | Repayment | ID Required | Age Range | Special Feature |
|---|---|---|---|---|---|---|---|---|
| #1 |
SOSCREDIT |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 70 | Receive money in 15 mins |
| #2 |
CREDIFY |
₱1,000 – ₱25,000 | 3 – 12 months | 0% for first loan | Monthly or End of term | Only National ID required | 20 – 70 | Receive money in 15 mins |
| #3 |
CREZU |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #4 |
FINBRO |
₱1,000 – ₱50,000 | 1 – 12 months | 0% for first loan | Monthly or End of term | Only ID Card required | 20 – 65 | Receive money in 10 mins |
| #5 | CREDITIFY Apply Now |
₱1,000 – ₱25,000 | 1 – 180 days | 0.1% | Monthly or End of term | Only ID Card required | All accepted | Approve Bad credit |
| #6 | CASHSPACE Apply Now |
₱1,000 – ₱25,000 | 2 – 4 months | 0% for first loan | Monthly or End of term | Only ID Card required | 18 – 70 | Easy loan approval |
| #7 | DIGIDO Apply Now |
₱1,000 – ₱25,000 | 3 – 6 months | 0% for 7 days | Monthly or End of term | Only ID Card required | 21 – 70 | Receive money in 4 mins |
| #8 | KVIKU Apply Now |
₱500 – ₱25,000 | 60 – 180 days | 1.2% per month | Monthly or End of term | Only ID Card required | 18 – 65 | Receive money in 5 mins |
| #9 | CASHEXPRESS Apply Now |
₱1,000 – ₱20,000 | 7 – 30 days | 0% for first loan | End of term | Only ID Card required | 21 – 70 | Receive money in 5 mins |
| #10 | MONEYCAT Apply Now |
₱500 – ₱20,000 | 7 – 180 days | 0% for first loan | End of term | Only ID Card required | 22 – 65 | Easy loan approval |
Main Laws
- Anti-Usury Law (Act No. 2031) This pivotal law establishes a cap on the interest rates that lenders can charge, thus curbing the practice of usurious lending. It is specifically designed to combat loan sharks who often impose exorbitant and illegal interest rates on their borrowers.
- Code of Commerce (Act No. 37) The Code of Commerce governs lending practices in the country. It mandates that all legitimate lenders must register with the Securities and Exchange Commission (SEC). Loan sharks, operating without such registration, are in direct violation of this law.
- Republic Act No. 8556 (The Philippine Deposit Insurance Corporation (PDIC) Charter) This law empowers the PDIC to intervene in cases of illegal lending that threatens the stability of the financial system. Loan sharks, by disrupting financial stability, fall under the PDIC’s regulatory scope.
Additional Measures
- Consumer Protection Laws The Philippines has several consumer protection statutes that offer additional safeguards against unfair lending practices:
- The Truth in Lending Act (TILA) TILA requires lenders to provide clear and comprehensive information about loan terms, including interest rates, fees, and repayment schedules. Loan sharks often obscure these details to exploit borrowers.
- The Fair Debt Collection Practices Act (FDCPA) FDCPA regulates debt collection practices, aiming to prevent harassment and intimidation of borrowers. Loan sharks frequently use aggressive and illegal tactics to coerce repayment.
Enforcement
- Securities and Exchange Commission (SEC) The SEC is responsible for the licensing and regulation of lending institutions. It has the authority to investigate and penalize those involved in illegal lending practices, including loan sharks.
- Law Enforcement Agencies The Philippine National Police (PNP) and the National Bureau of Investigation (NBI) play crucial roles in investigating and apprehending loan sharks, especially those engaged in criminal activities such as harassment or threats.
How These Laws Help
- Deter Loan Sharking: By imposing penalties and enforcing registration requirements, these laws act as a deterrent to loan sharking activities.
- Protect Borrowers: They ensure fair lending practices, prevent exorbitant interest rates, and protect borrowers from harassment.
- Promote Financial Stability: The regulations contribute to a more stable and reliable financial system in the Philippines.
Remember: If you are experiencing harassment from a loan shark, report the incident to the appropriate authorities and seek assistance from consumer protection agencies. The law is on your side, and you have the right to protection and fair treatment.