PICTURE borrowing money to cover essential expenses, only to be harassed, have your privacy violated, or feel trapped by predatory terms. Unfortunately, that’s the harsh reality for many in the online lending industry in the Philippines.
With public trust in freefall and financial inclusion efforts suffering, the Cybercrime Investigation and Coordinating Center (CICC) is stepping in. By partnering with JuanHand, a digital lending platform, they aim to clean up the industry and establish a safer, more transparent lending environment.
This collaboration is about more than just words; it’s a serious effort to tackle cybercrime and end unethical practices that hurt borrowers. With reports of aggressive and unauthorized debt collection methods on the rise, the Department of Justice (DoJ) Office of Cybercrime recently issued a public warning, reminding lenders that invading borrowers’ personal contacts or using threats is strictly off-limits.
A formal step toward safer lending
On Oct. 18, 2024, at the National Cybercrime Hub in Taguig City, the CICC and JuanHand made their commitment official by signing a memorandum of agreement (MoA). This partnership represents a significant step toward bolstering efforts against cybercrime and creating a more secure, trustworthy fintech lending landscape. It aims to provide peace of mind for borrowers seeking financial assistance.
Under the agreement, CICC and JuanHand will collaborate on data sharing, fraud detection, and improving digital lending standards. This partnership will foster operational and technical cooperation, helping to build consumer trust, protect users from harassment, and ensure registered platforms adhere to ethical practices. The CICC also sees this MoA as a foundation for bringing more fintech partners into its digitalization initiatives.
Prominent figures present at the signing included Undersecretary Alexander Ramos, executive director of CICC; Director Alvin Navarro of CICC; Francisco “Coco” Mauricio, CEO of JuanHand; and Xiaodong Sun, head of International Business at FinVolution Group, which owns JuanHand.
Addressing predatory lending, harassment
During the event, Undersecretary Ramos highlighted the urgency of addressing harassment and unauthorized collections, particularly by unregulated platforms.
“Many victims are being harassed by lenders who are not even registered,” he said. “We need to guide borrowers toward legitimate platforms to protect them from predatory practices.”
He also emphasized how some borrowers end up paying several times the original loan amount due to exploitative schemes.
Mauricio echoed these concerns, underscoring the need for fair lending practices. He stressed that making borrowers uncomfortable with legitimate lending options pushes them toward informal lenders, exposing them to even greater risks and harassment.
“The last thing we want is to make people uncomfortable with online lending,” Mauricio said. “If they turn away from legitimate platforms, they might resort to informal lenders and face worse consequences.”
Commitment to ethical lending
JuanHand provides microloans of up to P50,000, with repayment terms of up to nine months and daily interest rates below 0.49 percent. Registered with the Securities and Exchange Commission (SEC) and regulated under WeFund Lending Corp., JuanHand is a founding member of the Consumer Lending Association of the Philippines (CLAP), promoting responsible and transparent operations.
Backed by FinVolution Group, listed on the New York Stock Exchange (NYSE: FINV), JuanHand operates in multiple markets, including China, Indonesia, Mexico and Pakistan.
Addressing user complaints could further strengthen JuanHand’s reputation and improve borrower experiences. In the r/utangPH subreddit, a community dedicated to debt-related discussions, users shared their experiences with the lending app. Some have voiced concerns about the company’s aggressive communication tactics, such as frequent calls and text messages. One user mentioned facing issues when trying to re-borrow from the app, even after successfully paying off previous loans.
Empowering borrowers, restoring confidence
By improving public confidence in online lending, the company hopes to promote financial literacy and contribute to national development.
“We believe that financial empowerment can be a catalyst for growth,” said Mauricio. “Our mission is not just to provide loans but to help Filipinos realize their potential and improve their financial well-being.”
Borrowing money should be safe and straightforward, but concerns like cybercrime and unethical practices have made it risky for many. As CICC and JuanHand collaborate to address these challenges, staying informed and advocating for fair, transparent lending practices becomes even more important.
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