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Online Lenders Publicly Shame Debtors in the Philippines Using Their Facebook Contacts (inquirer.net) 65

Posted by EditorDavid from the I-know-what-you-borrowed-last-summer dept.
A man named Roger was surprised to hear from an old college friend after all these years, reports the Philippine Daily Inquirer -- and even more surprised to find out why. What she wanted to know was why he gave her number to an online lending company that was hounding him at that time. The company told her that he was in debt and needed to pay up. Roger took out a loan using the company's app back in May, after seeing an ad on Facebook. His payment had been overdue for a week when the company contacted his college friend. But in fact he didn't give the company her number. The company tapped his contact list, then messaged his college friend to get him to make good on his debt. The company also called his wife and threatened to report him to his boss so he would lose his job. Roger, 26, has since paid back the loan. And he vowed to never use the app again...

Roger is not alone. The National Privacy Commission (NPC) has reported receiving 921 formal complaints since July 2018 about online lending companies who publicly shame borrowers to get them to pay up... Three companies are facing cases filed by the NPC for violating the Data Privacy Act of 2012... Privacy Commissioner Raymund Enriquez Liboro earlier released copies of the investigators' fact-finding reports, which recommended criminal prosecution of the board members of the three companies. "The investigation determined that their business practice specifically targets the privacy of persons, practically making a profit out of people's fear of losing face and dignity. These unethical practices simply have no place in a civilized society and must stop," Liboro then said...

In an affidavit sent to the NPC, one complainant said Fast Cash threatened to post her selfies on Facebook. Another said the CashLending app changed her profile picture on Facebook to an obscene picture... None of these would have happened unless the users gave permission to these apps. But many users backed into a corner by circumstance didn't have a choice. Roger, for one, said he could not use the app unless he agreed that the company could access his contacts... [T]he NPC argued that although the users gave their approval, the lack of easily understandable and clear information, among other factors, meant that it was not a "valid" consent... Among the charges filed against the companies are noncompliance with the legal requirements of processing personal data, as well as malicious and unauthorized disclosure. Their operators may face imprisonment of up to seven years and fines of not more than P5 million [about $97,000 U.S. dollars] under the Data Privacy Act of 2012.
One person who filed a formal complaint with the government later received a discouraging text message from the company in question. "Before you sue us, we already [sent] a text blast to all of your contacts. We know your home address, your office and even your ugly face. Good luck with your privacy law."
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Online Lenders Publicly Shame Debtors in the Philippines Using Their Facebook Contacts More

Online Lenders Publicly Shame Debtors in the Philippines Using Their Facebook Contacts

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  • Send these guys to jail (Score:5, Insightful)

    by jonwil ( 467024 ) on Sunday September 15, 2019 @07:01PM (#59197612)

    Send the top executives of these companies to jail. Oh and not one of those nice "club fed" jails like they have in the US, one of those hellhole jails the President has been sending all the drug dealers to.

    That will send the message to these online lenders that this practice has to stop.

    • Re: (Score:2, Insightful)

      by greenwow ( 3635575 )

      You're mad at the victims instead of the thieves that stole money?

      • Re:Send these guys to jail (Score:5, Insightful)

        by fuzznutz ( 789413 ) on Sunday September 15, 2019 @07:50PM (#59197710)
        As someone who has been an innocent victim of these assholes who constantly harass people with similar names day and night, I'd agree with the GP. I've even been hounded for an ex-wife I had divorced eight years earlier. These companies are run by and employ the worst and slimiest scum on Earth and deserve their pit in Hell.

        • Yup. My first job & apartment after college was back in the days of landlines and new phone numbers when you moved to a new town. By stupid dumb luck, my new phone number had once been assigned to someone who'd skipped out on some debts. Did it matter to the debt collectors that *I* was not the one who'd run up debts and not paid? Not at all. And no amount of first telling them to stop calling me; and eventually blasting an airhorn into the phone after telling them to go fuck themselves would make

          • I finally got my worst pest to stop calling when I talked to the supervisor in charge and told them that the next call I received from them would result in me filing a harassment complaint with the State Attorney General's Office and their phone provider and then I would be contacting my personal attorney to file a lawsuit. They had harassed me for nearly a year. That finally got their attention. One of my kids still gets debt collectors calling his cell phone looking for the former owner of his number a
            • So... Any idea how to fix it? I believe that companies should be able to collect debt (Though the facebook shaming is clearly wrong and should be illegal if it is not). I also believe that the number of calls to collect debt that go to wrong numbers are ridiculous. I have had my phone number for 11 years now. I still randomly get debt collection calls for names I do not recognize. I have thought about this... Having a database of numbers that change hands could potentially stop this, however once that dat

              • SO how do you let legitimate debt collection proceedings happen properly while preventing abuse and avoiding creation of a new abuse mechanism?

                It is NOT my responsibility to fix their business plan and methods. It IS their responsibility to NOT HARASS innocent parties. Once they have been notified that I am not the party they are seeking and they continue calling day and night, it IS harassment. They have no business with me. I am not in any way responsible to help find their debtor nor am I responsible to answer for them. In short, I DO NOT CARE if they recover their money or not. It is not my business. If they try to make it my business,

      • It's only theft if they actually never intended to pay the money back when they took the loan.

        Now, I agree with a certain amount of hounding of debtors who are behind on their payments, but many of these companies go beyond the pale. I've experienced being harrased by debt collection companies in the USA where I didn't even know the person who owed the debt - they were the people who owned the house I bought two sales earlier. Somehow they got my phone number from the address and started bugging me about

        • Re: (Score:2)

          by EMN13 ( 11493 )

          Not to mention they may not even have understood or read the terms of the loan, because clearly the loansharks weren't trying to be upfront about those kind of things. As far as the lenders were concerned, they might still have been behaving reasonably.

          And *even if* their loan was overdue: harassing all kind of other people is, well... harassment ;-). The only reason they ever had to have access to that list of friends was harassment; i.e. even asking for that is worthy of punishment, regardless of whether

      • Please clarify, who's the thief here? The guys taking out loans or the loan sharks turned blackmailer?

        I want to make sure I'm angry at the right people.

      • Re: (Score:2)

        by Calydor ( 739835 )

        Threatening to get someone fired when he's a week behind on repaying a loan - how likely are you to see that loan repaid when he doesn't have a job anymore?

      • Taking out a loan and being two weeks late on a payment does not make you a thief.

      • You're mad at the victims instead of the thieves that stole money?

        Loan sharks are not victims.

    • Jail for what? Did they do something illegal? This seems to be standard practice in the debt collection industry.

      • Nobody said the law was perfect.

        That's why guns exist.

        • Nobody said the law was perfect.

          That's why guns exist.

          So you can shoot people when you disagree with the law?

          • Just pointing out, this is in Duterte's Philippines. Being shot by corrupt police for being accused of dealing drugs is perfectly acceptable.

            Or is that too Pee Cee... Do I have to call it an "extrajudicial loss of life"

            • Just pointing out, this is in Duterte's Philippines. Being shot by corrupt police for being accused of dealing drugs is perfectly acceptable.

              At some point you have to ask yourself, are the ladyboys really worth it?

          • While in general being against the law, I am still quite capable of doing so. Considering that the operation of a gun is hardly rocket science and that the average person has a very low tolerance to accelerated metal, it is perfectly possible for me to shoot people.

    • Re: (Score:2, Flamebait)

      by iggymanz ( 596061 )

      pffft

      so deadbeats get some shaming. maybe they should pay their loans?

    • This is the Phillipines. Just accuse them of offering you heroin. They'll become so overwrought with shame that they'll punch themselves to death, sign a confession, and donate their ill gotten gains to local law enforcement. In that order.

    • Re: (Score:2, Flamebait)

      by Greyfox ( 87712 )
      It's the Philippines. The same place with death squads that will kill you for being gay, a drug user or an opponent of death-squad based policies. These death squads endorsed by the guy running things there. I'm guessing the people in charge don't mind this at all. If anything, it just gives them more people for the death squads to kill. If you're a one-trick pony and your only trick is death squads, that's probably going to sound good to you. Now you might think maybe not put people who like death squads i

    • Re: (Score:1)

      by Tablizer ( 95088 )

      Article: "which recommended criminal prosecution of the board members"

      This almost never happens in the USA. Evil commands from the top are usually given verbally, and later denied, claiming it was a minion's own idea. Maybe Filipino law is different.

    • What? No!

      These guys are scum, sure. How about we not be? How about not making gaols hell holes? Some people can never be reformed and must be kept locked away, but how about we be civilised about it even if they are not?

  • Meanwhile, In the US... (Score:5, Interesting)

    by Foundryman ( 306698 ) on Sunday September 15, 2019 @07:31PM (#59197662)

    Meanwhile, in the US, debt collectors shame debtors by tracking down their relatives and calling them on the phone.

    • Re: (Score:2)

      by novakyu ( 636495 )

      And hopefully get sued for violation of Fair Debt Collection Practices Act [wikipedia.org].

      I sure hope Filipinos have some similar law.

    • Meanwhile, credit where credit is due! From the Inquirer's article [inquirer.net]:

      The NPC filed complaints against the following officials:

      Fcash Global Lending Inc.: Kellon de Jesus Manalastas, Tiancai Huang, John Christian Sia, Jovy Co Ting and Zichao Su.
      Unipeso Lending Co.: Haolong Li, Guanqun Luo, Flordeluna Rosell, Rizza Mae Lorilla and Renyvic Duquiatan.
      Fynamics Lending Inc.: Meng Li, Changjin Wang, Kwinnie Mae Fianza, Jacquielyn Chua Garrido, Helen Joy Amican de Luna and Bernard Salvacion, Jr.

      "Companies" that consist of little more than a website, a FaceBook page, and an app. Website Whois info showing Chinese sounding registrants. Official complaint pointing in same direction.

      Conclusion: it's the Chinese! Color me surprised... (just some electronics hobbyist here that sees China-made fake parts & equipment come across his desk on a semi-regular basis)

      • Re: (Score:2)

        by Mal-2 ( 675116 )

        You don't need semiconductor fabs, or any sort of production capability really, to become the Uber of payday lenders. That's basically what happened here, with rather predictable results. Why do you assume China has anything more to do with it than not caring if the scammers rent Chinese servers? Loan sharking is probably the second oldest profession, right after prostitution.

  • I know from several people in developing countries the "Facebook Craze" that happened - a few years back, suddenly everyone and their mother was inviting everyone else to join Facebook in these countries. It became an "it thing" to be on Facebook, kind of like owning a smartphone or a nice car, and people in these countries are so tech illiterate that they simply could NOT calculate ANY of the privacy and data security implications of joining Facebook. Your average Facebook user in the developing world disc

  • XPrivacy (Score:4, Informative)

    by ctilsie242 ( 4841247 ) on Sunday September 15, 2019 @07:40PM (#59197686)

    Probably one of the best apps around in this sector was XPrivacy. Sure, an app can have access to contacts. It will just get random tuples. Music selection? Static. Camera and mic? Random junk. Location info, happily bouncing somewhere else.

    I wouldn't be surprised if debt collectors in the US started pulling this soon. I've received calls at 2:00 AM from a debt collector saying that a neighbor owed money, and they were "doing the needful" by letting all neighbors know what a shameful person he is. Because the debt collection agency was offshore, the Federal Debt Collections Act has no power over them, even if the debt is actually real, and it isn't some type of fraud.

    • Comment removed based on user account deletion

      • Re: (Score:2)

        by Mal-2 ( 675116 )

        Yes, I'm sure your local police will be quite eager and able to assist in tracking down an offshore collection company.

        • Yes, I'm sure your local police will be quite eager and able to assist in tracking down an offshore collection company.

          This thing will become a whole lot more common when the lending agencies go overseas as well. At the moment, at least over here, you can’t just set up a lending agency or offer loans in our country, there’s a ton of regulations to abide by, and they include rules for debt collection as well. So they will have to resort to “other” measures, since they will have few legal options to collect a debt

          Incidentally this is just one of the reasons why EU and US are very wary of FaceBooks c

      • LEOs can't do anything, because it is in a different country, and one that isn't best buds with the US. The "solution" was to just turn on do not disturb mode unless it is someone in my contacts.

        • Often they are VOIP and the Police could go after the local VOIP breakout provider, well in the UK they can, and those soon clean up the act when they get fines a few thousand pound for each harassment call.

    • Re: (Score:2)

      by PPH ( 736903 )

      I've received calls at 2:00 AM from a debt collector saying that a neighbor owed money, and they were "doing the needful" by letting all neighbors know what a shameful person he is.

      Shameful? I guess it's a cultural thing. I'd just ask the collection agent who my neighbor borrowed from and if they are still lending over a person's credit limit. Because if all they can do is phone neighbors, I've my eye on a BMW and a flat screen TV set that I can't afford.

  • You asked for it. You defended private companies "are private and can do whatever they want."

    Well, enjoy the world you created.

    • Re: (Score:1)

      by AHuxley ( 892839 )
      Is the social media the publisher and owner of the data entered and flowing around :)

  • Kind of counterproductive to... (Score:5, Insightful)

    by CanadianMacFan ( 1900244 ) on Sunday September 15, 2019 @10:13PM (#59197918)

    The company threatened to call the guy's boss and have him fired. Sounds kind of counterproductive if the company wants it's money back any time soon.

    • Under the U.S. legal system that would be considered tortious interference, because there is a contractual relationship between the employee and employer, so the debt collector would be liable for all lost wages that resulted from the debtor loosing their job. Furthermore, some states allow for treble damages if you can prove what the debt collector did was libelous.

    • It is stupid for them to follow through, but they make the threat to create fear, uncertainty and doubt and that would be sufficient to get some people to pay up.

  • Personal debt, reprehensible! Corporate debt... (Score:5, Insightful)

    by Daemonik ( 171801 ) on Sunday September 15, 2019 @10:22PM (#59197938) Homepage

    ..is just business.

    Honestly I'm tired of people acting like going into debt is a personal moral failure deserving of public humiliation while corporations walk away from debt every day and nobody cares. So sorry, that debt isn't the investor's problem, they're safe behind 20 LLC's. Nope, not the CEO's problem, his golden parachute is contractually obligated and can't be taken away in the bankruptcy. Just blame the workers and the unions! Then we'll sell it to an investment firm who'll pay off the investors with borrowed money and make the company service it's previous debt PLUS the cost of their new loans, scrape off as much profit as possible and dump the husk when it's over. Business!

  • So, this is one of the cases where the owners of this company should be put in stocks in the town square, tarred and feathered. And, that's after their company is permanently shut down.

  • US debt collectors are actually worse (Score:3)

    by Applehu Akbar ( 2968043 ) on Monday September 16, 2019 @06:28AM (#59198510)

    The companies being cited here are at least the original lenders of debt. What is way worse than Facebook shaming by a lender you stiffed is having expired debt, which may represent nothing more than a disputed transaction, be bought out by some out-of-state third party you never heard of, which then hounds you using illegal tactics forever.

  • Those people had _NO_ choice what so ever, but accept this app to have access to their contacts/facebook/pictures/...

    This is just a modern version of a loanshark, why do people never learn?
    If anything these guys are at least half decent and are just using your contacts to shame you into paying up.
    Some of them are not so nice and you just basically end up on the street.

    "Roger, 26, has since paid back the loan. And he vowed to never use the app again"

    He couldn't have gotten a better life-lesson then this.

  • No seriously! What is wrong with your country? How did you let it get to this state?

  • The article does not mention the interest rates charged but rates can be obscene. The poorly educated and/or desperate people will agree to crazy interest rates like 20%. You say, that's not a bad until you learn it is 20% per week! Here is a good summary of the situation: https://www.rappler.com/though... [rappler.com]

  • I can't believe that one of the threats was "pay up or we'll get you fired" .... from the job that provides the money to pay your bills. Seems rather counter to the shakedown. i guess it's the electronic equivalent of "pay up or cousin Vinny will break your kneecaps"

    I feel like we're all preaching to the choir. I have refused for years to give apps access to my FB info, even going in and removing app access for the few that I once did provide access. Sure, sometimes an app only allows a select lis

  • This gave me a new idea if you're into wasting scammer's time with robo-calls.

    When they call to get your to do something, tell them you first have certain terms before you will continue with their scheme. First you need a throw-away facebook account. Next, tell them you don't have any friends and want them to friend you before you will do whatever scam they want. Kinda of like a Japanese thing where you need a personal relationship before you allow a business relationship. Then friend them, make them chat w

  • I don't share such details like facebook account. Also I don't think that online loan is something like shame. In our life can be different situations..But still before using online loans I recommend to know how to apply for sss online [cashcat.ph], it is also quite important.

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