Updated
December 23, 2019, 11:04 AM By Bernie Cahiles-Magkilat
As the phenomenal case
of online lending operators conducting public shaming campaigns versus their
delinquent borrowers is no longer unique in the Philippines having reached
ASEAN level, the Philippines National Privacy Commission (NPC) has sought for
an authority to impose administrative fines on violators and a multi-pronged
ASEAN approach.
National Privacy
Commissioner Raymund E. Liboro said that Congressman Victor Yap has already
filed a bill recently that would amend the Data Privacy Act of 2012. Foremost
in the bill is the explicit power of NPC to mete out administrative fines of
not more than ₱5 million.
Liboro explained that
the power to mete out administrative fine is meant to teach companies
accountability, compliance and ethics in handling personal data.
Calling it a “slap in
the wrist,” Liboro said the administrative fine provides a middle ground
because the current law only specifies imprisonment, which could not possibly
result in jail terms as complainants may choose to settle out of court.
“With the
administrative fine, we can now compel accountability when a company violates
handling of personal data. Companies with no Data Privacy Officer are also
liable of non-compliance,” he adds.
Liboro also believes
this “carrot and stick” approach is easier to implement and more effective
because it is preventive than the threat of imprisonment.
Liboro admitted that NPC had spent most of its time attending to over 2,000 complaints filed against online lending firms that conducted public shaming on their delinquent borrowers.
Liboro admitted that NPC had spent most of its time attending to over 2,000 complaints filed against online lending firms that conducted public shaming on their delinquent borrowers.
NPC had ordered the
shutdown of 26 online lending firms apps in coordination with Google and the
National Telecommunications Commission. NPC also filed charges against three
most-complained lending firms Fynamics Lending, Inc., Unipeso Lending Company,
and Fcash Global Lending, Inc. NPC already denied the motion of Unipeso and
Fcash to dismiss the charges.
At the ASEAN level,
Liboro said that Vietnam and Malaysia have confirmed at the recent ASEAN
Privacy Forum that some of their online lending firms were also engaged in
similar public shaming efforts to force delinquent borrowers to pay up.
“We don’t know yet how prevalent this has become but we have to tackle this from many fronts,” said Liboro.
“We don’t know yet how prevalent this has become but we have to tackle this from many fronts,” said Liboro.
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