Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies, Securities and Exchange Commission Memorandum Circular No. 18, Series of 2019 (Philippines)

The Memorandum Circular extends its coverage to third party service providers (TPSPs) engaged by lending companies (LCs) and financing companies (FCs) for the collection of a borrower's debt. It defines, penalizes and enumerates unfair collection practices, including the use of threat, violence or criminal means, or the disclosure, or publication of personal information of borrowers and the use of deceptive means to collect debt or obtain information of the borrower. The Circular allows FCs and LCs to outsource the collection of a debt through TPSPs, and the latter shall be considered as the FCs and LCs' agents.