Copperstone Lending Lauds Senate Approval of Fair Debt Collection Bill, Backs Stronger Standards for Online Lending

Copperstone Lending Lauds Senate Approval of Fair Debt Collection Bill, Backs Stronger Standards for Online Lending | The Philippine online lending sector is entering a new phase of regulatory maturity following the Senate’s approval of the Fair Debt Collection Practices Act under Senate Bill No. 1744 on third and final reading on March 9, 2026. This is a move that responsible lenders say will strengthen consumer protection and restore trust in the digital credit ecosystem.

Copperstone Lending Inc., one of the country’s emerging digital lending companies advocating responsible lending practices, welcomed the Senate’s action, describing the measure as a step toward clearer standards and stronger accountability across the online lending industry.

The Senate legislative record for the bill, including the third-reading copy, can be accessed through this link: https://legacy.senate.gov.ph/lis/bill_res.aspx?congress=20&q=SBN-1744.

A release from the Senate Public Relations and Information Bureau said the bill aims to prohibit harassment, abusive communications, deceptive collection tactics, and other unfair practices in debt collection.

For Copperstone Lending, the legislation represents an important development in the government’s broader effort to address abusive practices that have affected the reputation of parts of the online lending sector.

David S. Balamon, Chief Executive Officer of Copperstone Lending Inc., said responsible lenders should welcome clearer regulatory standards that protect both borrowers and legitimate fintech companies.

“We strongly support the Senate’s move to establish clearer national standards for debt collection practices. Responsible lenders have nothing to fear from stronger consumer protection—on the contrary, it strengthens trust in the entire financial ecosystem,” Balamon said.

He emphasized that ethical collection practices are essential for the long-term credibility of the digital lending industry.

“Digital lending is an important financial inclusion tool for millions of Filipinos. But innovation must always be accompanied by accountability. Clear rules help ensure that borrowers are treated with dignity while legitimate lenders can continue to operate responsibly.”

The proposed legislation also reinforces principles already reflected in existing regulations governing lending companies.

These include SEC Memorandum Circular No. 18, Series of 2019, which prohibits harassment, intimidation, public shaming, and deceptive tactics in debt collection.

Debt collection activities must also comply with the Data Privacy Act of 2012, enforced by the National Privacy Commission, which has repeatedly warned against the harvesting of borrowers’ phone contact lists for collection purposes.

For institutions supervised by the Bangko Sentral ng Pilipinas, consumer protection rules likewise prohibit harassment and unfair collection conduct by lenders or their agents.

Balamon said the proposed law would help unify these standards into a single national framework, making enforcement clearer while helping legitimate lenders differentiate themselves from operators that rely on abusive tactics.

“The online lending industry has grown rapidly in recent years, but that growth must be accompanied by strong governance and responsible practices. Measures like this help separate legitimate financial service providers from those who exploit consumers.”

Copperstone Lending has also emphasized the importance of collaboration between regulators, law enforcement, and responsible fintech firms to address online lending scams and protect consumers.

The company has been working with government partners, including the Cybercrime Investigation and Coordinating Center (CICC) and the Philippine National Police Anti-Cybercrime Group, to support efforts against fraudulent online lending operations and cyber-enabled financial scams.

“Public-private collaboration is critical in protecting consumers from fraudulent online lending schemes,” Balamon added. “We believe responsible fintech companies must work closely with regulators and law enforcement to ensure the digital credit ecosystem remains safe and trustworthy.”

Industry observers say the Senate’s approval of the Fair Debt Collection Practices Act reflects growing recognition that consumer protection must evolve alongside the country’s fast-growing fintech lending market.

The bill must still pass the House of Representatives before it becomes law. In the 20th Congress, lawmakers have introduced related measures, including House Bill No. 7736, which seeks to regulate debt collection practices and protect borrowers from harassment and misrepresentation.

Another measure addressing unfair debt collection practices, House Bill No. 2662, was filed in July 2025.

Balamon said the Senate’s action represents an opportunity for the industry to strengthen its credibility and rebuild public confidence.

“Stronger safeguards ultimately benefit everyone—borrowers, regulators, and responsible lenders alike. We welcome reforms that promote transparency, accountability, and ethical financial services.”

With lawmakers pushing for clearer rules and regulators stepping up enforcement, the Philippines’ online lending industry may be entering a new era—one defined not only by innovation, but by accountability and responsible financial practices.