The owners of an online lending app allegedly found to be violating data privacy rules is now facing the full force of the law and may end up getting six years of jail time and paying up to P6 million in fines.
The National Privacy Commission (NPC) on Friday recommended the prosecution of Fynamics Lending Inc., the operator of PondoPeso, an online lending app. Scores of borrowers have filed complaints against the app for reportedly subjecting them to public shaming to pressure them to pay.
In a 40-page decision, the NPC concluded Fynamics and its board of directors should be made to face charges of breaching Section 25 of the Data Privacy Act (DPA).
Criminals found guilty of unauthorized processing of personal information could be imposed with three years of imprisonment and P2 million in fine. Further, violators could be sentenced with up to six years behind bars and made to pay as much as P4 million in penalty.
The NPC is submitting its findings and pertinent case papers to the Department of Justice, as it proposes to prosecute the respondents on charges of unauthorized processing under Section 25 of the DPA.
Based on complaints filed before the NPC, PondoPeso allegedly used personal information from the borrowers’ contact list without their consent or authority. Worse, these personal information were allegedly shared with third persons, including friends, relatives and colleagues.
In some cases, these third persons were allegedly compelled by PondoPeso to settle the loan on behalf of the borrowers.
Likewise, PondoPeso agents were accused of allegedly using the personal information of the borrowers to damage their reputation to the point of coercing them to pay their loan. In the worst scenarios, sensitive information against the borrowers were allegedly shared on social media by PondoPeso, which the NPC ruled as excessive beyond what is agreed upon by parties.
Privacy Commissioner Raymund E. Liboro reminded firms to comply with the provisions of the DPA and to uphold the data privacy rights of their clients.
He warned the NPC will hunt down business owners and operators who exploit their borrowers by stealing their personal information and using it against them. He added firms should abide by the DPA to protect products and services from any doubts on data privacy.
From July 2018 to July 2019, the NPC received a total of 689 complaints against online lending firms and their apps, of which at least 113 were made against PondoPeso.
In 2019 the NPC issued a directive prohibiting 26 online lending apps from processing personal information on charges of breaking the DPA. Download store Google Play then took down these apps from its platform to prevent any further users from accessing them.
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