The National Privacy Commission asked lending companies, financing companies or lending individuals to register with the commission and submit the complete list of all publicly available applications they own and operate.
NPC commissioner John Henry Naga said the amended NPC Circular No. 2020-02 and the corresponding guidelines on the processing of personal data for loan-related transactions aimed to address the data privacy concerns due to the prevalence of online lending.
“NPC Circular No. 2022–02 provides amendments that will serve as an added protection to both borrowers and lending companies. The NPC aims for smooth transactions between the two parties, where borrowers are afforded their data privacy rights and lending companies are given the opportunity to ethically conduct their business and establish trust among their customers,” Naga said.
Under the circular, violators will be subject to penalties, fines and other disciplinary measures as provided in the Data Privacy Act of 2012. The amended circular covers the processing of personal data for evaluating loan applications, granting loans, collection of loans and closure of loan accounts; character references; and a newly added provision for guarantors. Othel V. Campos