PH authorities crack down on lending apps that have ‘ties’ to Chinese scammers

‘Meron kasi kaming tinitignan dito na may possibility na ‘yong ibang mga dating nag-o-operate ng POGO is nag-switch na sa ganitong loan scamming,’ says Presidential Anti-Organized Crime Commission chief Gilbert Cruz

Trigger warning: Mentions of suicide

MANILA, Philippines – Philippine authorities started a renewed crackdown on online lending applications (OLA) that have alleged connections to Chinese scammers.

“Meron kasi [kaming] tinitignan dito na may possibility na ‘yong ibang mga dating nag-o-operate ng POGO is nag-switch na sa ganitong loan scamming (We’re looking at the possibility that those who previously operated POGOs had already switched to these types of loan scamming),” Presidential Anti-Organized Crime Commission (PAOCC) Executive Director Gilbert Cruz told reporters on Friday, January 31.

“May mga nahuli na kasi tayo before na nagpapatakbo [ay] mga Chinese nationals. So, we will be checking on this grupo na ‘to, kung ito is the same group na involved before. Kasi ‘yong mga una namin na na-check, mga grupo rin sila na mga magpo-POGO e,” the PAOCC chief added.

(We raided some lending businesses before that were run by Chinese nationals. So, we will be checking on this group if this is the same group that was involved before. Because the first ones that we checked are groups involved in POGOs as well.)

“Aware naman po kami na karamihan po sa operator ng OLA ay mga Chinese operators po. At ang sakit po noon na sila po nakikinabang sa mga Pilipino, pero ang mga trabahador nila, Pilipino rin na kapwa namin, [ang] nangha-harass (We are aware that most of the OLA operators are Chinese. It’s painful because they benefit from Filipinos’ money, and their employees are Filipinos who harass their fellow Filipinos),” Kikay Bautista of the United OLA Victims Movements said.

Through search warrants issued by the Makati Regional Trial Court Branch 147, the National Bureau of Investigation (NBI), PAOCC, and the Securities and Exchange Commission (SEC) raided WeWill Tech Corp. in Makati City. The authorities said that through Filipino employees, the corporation harasses its clients who have loaned money from applications Peso Wallet App and Credit Cash App.

Of the 131 Filipino employees apprehended in the company’s Makati office, those proven to have been involved in harassment would be held under custody and subjected to inquest proceedings. Inquest is an expedited version of a preliminary investigation done if the subjects were arrested without an arrest warrant. According to the rules, subjects should also be charged with a crime in less than 36 hours under inquest.

“Sobrang lala na po. Marami na pong ‘yong mga [nagtangkang] magpakamatay…. Nasira ‘yong buhay, ayun po, nagkaroon ng depression. Kaya sobrang lala na talaga at kailangan nang simulang puksain ‘yong mga ganitong klaseng online lending application,” Ric Espino of the NBI Anti-Organized and Transnational Crime Division, told reporters.

(It’s become too much. Because of these applications, many people have committed suicide. Some lives were destroyed, too, while some people suffered from depression. It’s too much, and that’s why we need to crack down on these types of lending applications.)

The NBI said the apprehended individuals might face cases for alleged violation of the Data Privacy Act and for cyber libel, among others.

Harassment, threats

Catherine (not her real name) witnessed the NBI, PAOCC, and SEC’s joint operation on Friday. She was among the victims of the raided corporation.

Aside from the harassment, victims like Catherine raised the alarm over the firms’ excessive loan interests. In her case, she originally loaned P20,000, but after signing up, it became P1,500. In the end, only P900 went into her account, but she was still forced to pay the whole amount of P20,000.

She had a week to pay off her debt. But even before her due, she already started experiencing harassment from the firm: “Tine-text po nila ‘yong pamilya ko, pakisuyo daw na kausapin ako kasi scammer daw po ako. Nakakahiya po kasi hina-harass po ako e. Nakakatakot po, lalo na sabi po nila ‘yong patong na daw po ako sa ulo. Tapos pupuntahan daw po sa bahay, pati po ‘yong pamilya ko.”

(They were texting my family, telling them that they should talk to me because I was a scammer. I was ashamed because I was being harassed. I was also afraid, most especially when they told me I had a bounty on my head and that they would also come for my family.)

Espino said that just like in previous cases of hostile lending companies, the subject of their warrant also asked their clients for access to the list of contacts and even the phone’s photo gallery. There were times, according to the NBI official, that some clients were blackmailed using private photos accessed through their phones.

Cruz said the loan’s interest was around 35% per week, dragging victims down under more debts.

Stages of harassment

According to the PAOCC, there are five stages of harassment that victims endure from online lending applications:

• First: After receiving the loan, the lending firm will remind you of your seven-day deadline. Within this period, the firm will also threaten you that they will contact your loved ones and friends to inform them about your unpaid debt.

• Second: If you fail to pay within seven days, the firm will proceed to the second stage. Aside from forcing you to pay huge penalties, the employees will also start contacting your loved ones. They will set another 14-day deadline to settle your loan.
• Third: After two weeks of nonpayment, the firm will threaten you with a complaint with the small claims court or barangay. They will also threaten you with an administrative complaint that will be filed with the entity that you are working for.
• Fourth: The firm will harass your loved ones with obscene and disrespectful words after one month of nonpayment. They will also threaten to post you on social media or even “terrorize your residence.”
• Fifth: If you fail to pay for months, the firm will resort to death threats.

– Rappler.com