THE Senate has advanced Senate Bill 1744, or the proposed Fair Debt Collection Practices Act, which remains pending on second reading after its sponsorship in plenary on February 10.
The measure was filed on February 4 by Senators Sherwin Gatchalian, Robinhood Padilla, Joel Villanueva, and Francis “Kiko” Pangilinan.
Villanueva said the bill seeks to protect Filipino borrowers from “abusive, deceptive, and unfair debt collection practices” while emphasizing that legitimate financial obligations must still be honored.
He cited complaints involving harassment, threats, and misleading tactics allegedly used by some debt collectors.
Gatchalian earlier pushed for similar reforms in previous Congresses, noting the need to consolidate scattered protections under one comprehensive statute.
Existing safeguards are currently found in various laws and regulatory issuances.
The bill seeks to prohibit intimidation, harassment, false representations, threats, and unauthorized disclosure of personal information in debt collection.
The measure defines who may be considered a debt collector and enumerates prohibited acts.
The push for the bill comes amid continued enforcement actions by regulators.
The Securities and Exchange Commission recently imposed penalties on a financing company over unfair and abusive debt collection practices, reinforcing calls from lawmakers for clearer statutory backing.
Consumer protection provisions are currently dispersed across laws such as the Financial Consumer Protection Act and regulatory circulars issued by the SEC and the Bangko Sentral ng Pilipinas.
Lawmakers argue that a dedicated statute would close enforcement gaps, especially with the rise of digital lending platforms.
A counterpart measure, House Bill 7736, has also been filed in the House of Representatives and is under deliberation.
No major amendments or committee hearings have been reported since the bill’s sponsorship, but it continues to move forward as part of the Senate’s consumer protection agenda.
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