THE Police Regional Office-Davao Region (PRO-Davao) has urged the public to borrow only from legitimate, authorized lenders amid warnings about illegal lending and abusive collection practices affecting borrowers.
In a public advisory, PRO-Davao cautioned the public against loan sharks, or illegal moneylenders who may take advantage of people facing financial difficulties, particularly during the holiday season.
The police identified several warning signs of illegal lending, including excessively high interest rates, a lack of paperwork, threats and intimidation, and pressure to take out additional loans.
“PRO 11 urges the public to borrow only from legitimate and authorized lenders,” the police office said.
The warning comes as the Securities and Exchange Commission-Davao Region (SEC-Davao) has reported complaints involving online lending platforms and financing schemes in the region.
In 2025, SEC-Davao Director Lawyer Katrina Jamilla Ponco-Estares said the office had received more than a hundred complaints, most involving harassment, including death threats, and high interest rates.
The commission also warned that some online lending platforms advertised on social media were not registered with the agency.
Nationally, the Philippine National Police reported in March 2026 that 47,446 complaints against online lending firms had been filed from August 2024 to the first quarter of 2026, based on data from the Presidential Anti-Organized Crime Commission.
Borrowers reported threats, public shaming, and the unauthorized use of personal contact lists, prompting the PNP to intensify efforts against online lending operators allegedly involved in harassment, privacy violations, and other cybercrime offenses.
The SEC requires lending and financing companies to secure the necessary registration and a Certificate of Authority to operate legally. Borrowers are advised to verify both the company and the specific online lending platform before applying for a loan.
The commission maintains an official list of recorded online lending platforms on its website.
Complaints against registered lending and financing companies and their online lending platforms may be filed through the SEC's iMessage Portal at https://imessage.sec.gov.ph/. Complaints involving individuals or companies conducting lending activities without a Certificate of Authority may be sent to the SEC's Enforcement and Investor Protection Department at epd@sec.gov.ph.
PRO-Davao advised the public to avoid loans without proper documentation and to check the legitimacy of lenders before entering into any agreement.
As alternatives, the police recommended government loan programs offered by the Social Security System, Government Service Insurance System and Pag-Ibig Fund, as well as registered cooperatives, banks and employer-provided salary loans.
Those needing financial assistance may also approach their local government units, the City Social Welfare and Development Office or the Department of Social Welfare and Development, subject to applicable requirements.
“If this sounds familiar, please seek help!” PRO 11 said in its advisory.
The police urged borrowers to report loan sharks and their illegal activities to the nearest police station. For emergencies, the public may call 911. DEF