Online Loan Sharks in the Philippines: Reporting Harassment and Legal Remedies (2024)

The Philippines has witnessed a concerning surge in online loan shark operations, leading to widespread harassment of borrowers. These unscrupulous lenders often resort to aggressive tactics to recover their funds, including harassment, threats, and, in extreme cases, violence.

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However, being a victim of such harassment does not mean you must suffer in silence. CashExpress PH will delve deeply into the world of loan sharks in the Philippines, providing insights into what constitutes loan shark harassment, the steps you can take to report it, and the legal remedies available to victims. Additionally, we will offer valuable insights on how to avoid falling prey to loan sharks in the first place.

Understanding Loan Sharks

Loan Shark Definition

A loan shark is an individual or entity that provides loans at exorbitant interest rates, far exceeding those offered by legitimate financial institutions. These predatory lenders often employ aggressive and, in many cases, illegal collection methods, such as harassment, threats, or even physical violence, when borrowers fail to meet their repayment obligations.

Loan Sharks in the Philippines

Loan sharks in the Philippines are unauthorized and clandestine money lenders who operate outside the realm of legal and regulated financial institutions. They offer loans with shockingly high interest rates, sometimes lending ₱5 for every ₱6 borrowed, and these loans come with extremely strict terms. Interest rates can quickly spiral to levels that exceed 30% to 50% within an exceptionally short repayment period, leaving borrowers in a cycle of debt and despair.

Loan Shark Interest Rates

The interest rates imposed by loan sharks in the Philippines can vary widely, and they are often associated with illegal or unlicensed lenders. Unlicensed loan firms or individuals, commonly referred to as loan sharks, can charge interest rates that reach up to 20% or more per month. However, it is essential to note that the Philippines has legal regulations in place that cap interest rates, setting a limit of 15% per month for loans ranging from ₱1,000 to ₱15,000 and 16% for loans exceeding this amount. Loan sharks typically offer short-term loans with astronomical interest rates, often starting at around 5% to 6% for the first month, and increasing to 6% to 7% for subsequent months. Dealing with loan sharks is not only financially detrimental but is also illegal. Borrowers are strongly advised to seek legitimate and regulated lending options to avoid predatory interest rates and the potential for harassment.

Noteworthy Loan Sharks

Some of the infamous loan sharks in the Philippines include “5-6 lenders” and “sangla ATM lenders.” These unscrupulous lenders are known for charging excessively high interest rates and employing threats or violence to pressure borrowers into making repayments. The term “5/6” is commonly used in reference to lending ₱5 or 500 pesos with the expectation of receiving ₱6 or 600 pesos in return.

In the Philippines, there are laws and regulations in place to protect borrowers from the predatory practices of loan sharks and other illegal lenders. These laws are designed to ensure that individuals are not subjected to harassment, unreasonable terms, or exploitative lending practices. They regulate interest rates, repayment terms, and lending procedures to prevent predatory lending. It is crucial for borrowers to be aware of their rights and exercise caution when dealing with lenders. Additionally, borrowers are encouraged to report any harassment or illegal lending activities to the appropriate authorities, such as the Securities and Exchange Commission (SEC), which actively takes measures to crack down on abusive lenders operating in the country.

List of Online Loan Sharks in the Philippines 2024

A list of online loan shark entities operating in the Philippines in 2024 is provided below, along with the reasons for their inclusion in this list:

Lender Issue
CashWill ⭐ Imposes highly unreasonable terms, making it difficult for borrowers to meet their obligations and manage their finances effectively. The terms are often stacked against the borrower.
RushLoan ⭐ Systematically misrepresents fees and charges, leading borrowers to believe they are taking out a loan with lower costs than they end up facing. This misleading information can cause significant financial strain.
Cashuttle ⭐ Engages in aggressive and harassing practices towards borrowers, creating a hostile and distressing environment for individuals seeking financial assistance. Borrowers often feel harassed and intimidated.
PesoBee ⭐ Shares borrowers’ personal and financial information without consent, violating their privacy rights and potentially exposing them to various risks, including identity theft and fraud.
QuickPera ⭐ Conceals additional charges and fees that are not disclosed upfront, leaving borrowers surprised by the hidden costs when it’s too late to back out of the loan agreement. This lack of transparency can be financially detrimental.
Tapa ⭐ Imposes exorbitant and skyrocketing interest rates, causing borrowers to accumulate substantial debt and making it nearly impossible for them to repay their loans within reasonable terms.
SpendCash ⭐ Pursues aggressive debt collection practices, which can include frequent and intimidating communications, creating undue stress and anxiety for borrowers in financial distress.
CashJeep ⭐ Operates without proper regulation or oversight, exposing borrowers to potentially exploitative lending practices and putting them at risk of predatory loan terms.
Pesopop ⭐ Lacks transparency in its lending practices, making it difficult for borrowers to fully understand the terms and conditions of their loans, which can result in unexpected financial consequences.
Lemon Loan ⭐ Violates borrowers’ privacy by mishandling their personal information, potentially leading to data breaches and misuse of sensitive data, endangering borrowers’ financial and personal security.

Reporting Loan Shark Harassment

Reporting a loan shark in the Philippines is crucial to protect yourself and others from the illegal and harmful practices of these lenders. Below are the steps to follow when reporting loan shark harassment:

  • Step #1: Gather Evidence – If you are being harassed or threatened by a loan shark, collect evidence such as screenshots or records of communication.
  • Step #2: Identify the Lender – Try to gather as much information as possible about the lender, including their name, contact details, and location.
  • Step #3: Report to the Securities and Exchange Commission (SEC) – Visit the SEC’s website and download the complaint form for lending companies. Fill out the form and submit it via email to Provide valid government-issued ID and evidence/proof of the harassment or illegal lending.
  • Step #4: Contact Authorities – If you feel threatened or unsafe, contact your local police and inform them about the loan shark’s activities.
  • Step #5: Seek Confidential Help – Reach out to specialist illegal money lending teams who investigate and prosecute illegal lenders in the Philippines if you are concerned about your safety.

By following these steps and providing evidence to the SEC and local authorities, you can take effective action against loan sharks in the Philippines, ultimately contributing to efforts to put an end to their illegal lending practices.

Loan Shark Reviews on Reddit

Online loan shark Philippines reviews on Reddit can provide valuable insights into people’s experiences with these illegal lenders. It is essential, however, to recognize that loan sharks are notorious for their exploitative practices, including charging exorbitant interest rates and often employing illegal means to collect debts.

Here are some of the common points made by individuals in Reddit discussions:

  • Loan sharks charge extremely high interest rates, making it challenging for borrowers to repay the loan.
  • They may use threats or violence to collect payments.
  • Loan sharks may not be registered with the government, leaving borrowers with no legal recourse if problems arise.

In summary, Reddit discussions and online resources consistently advise against engaging with loan sharks due to their harmful financial consequences and illegal activities.

Tips for Avoiding Loan Sharks

To avoid falling victim to loan shark harassment in the Philippines, consider the following tips:

  • #1. Verify the Lender’s License: Check if the lender is licensed and registered with the appropriate authorities.
  • #2. Avoid Unsolicited Offers: Be cautious of lenders who contact you through unsolicited texts, calls, or social media messages. Most legitimate lenders do not engage in aggressive marketing tactics.
  • #3. Research the Lender: Investigate the reputation of the lender and read reviews from other customers. This can help you determine if the lender has a history of taking advantage of borrowers.
  • #4. Don’t Share Personal Information: Refrain from providing sensitive personal information like your ID, ATM card, or passwords to lenders. Trustworthy lenders do not require such sensitive data.
  • #5. Report Suspected Loan Sharks: If you encounter a lender engaging in illegal or predatory practices, report them to the appropriate authorities, such as the Securities and Exchange Commission (SEC).
  • #6. Document Transactions: Maintain records of all loan transactions, including agreements and payments. This documentation can protect you in case of disputes.
  • #7. Seek Financial Advice: If you require financial assistance, consider speaking with a financial advisor or a credit counseling service. They can help you find safer ways to borrow money and manage your finances effectively.

By following these tips, you can significantly reduce the risk of becoming a victim of loan sharks in the Philippines and ensure that your financial transactions are conducted legally and securely.

Frequently Asked Questions

FAQ Let’s address some frequently asked questions to provide further clarity on the issue of loan sharks in the Philippines:

Can I borrow money from a loan shark?

Borrowing money from a loan shark is strongly discouraged and potentially illegal. Loan sharks are illegal lenders who often charge very high interest rates, sometimes exceeding 20%, and may use threats or violence to recover their funds. Engaging with loan sharks puts borrowers at risk and may lead to legal consequences.

Is Moneycat a loan shark?

No, Moneycat is not a loan shark app. Moneycat is a legitimate financial institution that offers personal loans and other financial services. Loan sharks, on the other hand, typically engage in illegal and predatory lending practices. Moneycat operates within the legal framework and adheres to financial regulations.

Is loan shark illegal in the Philippines?

Yes, loan sharks online, involving lending money at exorbitant interest rates, are illegal in the Philippines. Philippine law prohibits loan sharks and sets regulations on interest rates for legitimate lenders. These unlicensed moneylenders charge exorbitant interest rates and often operate outside the law, making them subject to police or tax examinations.

How to solve loan shark problems?

If you are facing issues with a loan shark, it is essential to record your interactions and maintain copies of all loan documents and communications with the lender or their representatives. Taking screenshots of inappropriate social media posts can serve as evidence of your borrower status. Furthermore, notify the authorities about the loan shark’s activities.

Can a loan shark take you to court?

No, a loan shark cannot sue you in court. Loan sharks engage in illegal lending practices, and the loans they provide typically come with unlawful terms and exorbitant interest rates. Since their activities are illegal, they lack the legal standing to enforce repayment through the court system.


The issue of loan sharks in the Philippines is a serious concern that preys on vulnerable individuals in desperate need of financial assistance. If you find yourself being harassed or threatened by a loan shark, it is crucial to understand that there are steps you can take to protect yourself. By reporting the harassment to the relevant authorities, seeking legal assistance, and educating yourself about the dangers of loan sharks, you can safeguard yourself and your family from the detrimental effects of these unscrupulous lenders. The fight against loan sharks requires collective effort and awareness, and by taking action, you can contribute to the eradication of their illegal lending practices, making the Philippines a safer place for all borrowers.

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