Lenders Beware: National Privacy Commission Strengthens Guidelines On Processing Of Borrower Information

On December 1, 2022, the NPC issued NPC Circular No. 2022-02 entitled "Amending Certain Provisions of NPC Circular No. 20-01 on the Guidelines on the Processing of Personal Data for Loan-Related Transactions" (Amended Loan Transaction Guidelines). The Amended Loan Transaction Guidelines amended NPC Circular No. 2020-01, which provided for the guidelines on the processing of personal data for loan-related transactions.

Lending companies, financing companies, and other persons acting as such (collectively, Lenders) must reassess their loan processing activities to ensure compliance with the Amended Loan Transaction Guidelines. This is particularly important for Lenders that operate online through online lending platforms and access clients' contact list, camera roll, location, and storage, among others.