Online lending companies in the Philippines have been accused of harassing their borrowers for late payments. However, is this really the case? In this blog post, we will take a closer look at the issue and explore the different sides of the story.
Here in the Philippines, salaries are mostly at Bare Minimum. Companies pay their workers just to meet the government's Requirements, Also there is a difference between Location Rates, Manila Rates are higher than Provincial Rates.
So, people need to find some other means of Income just to survive in their everyday lives, now here comes Lending Companies. In the past, these kinds of Business was just a few, because anyone who wants to apply for a loan must have a lot of patience and courage to ask for some amount of money and return back with Interest.
They will require the borrowers a lot of documents just to pass the applications, not to mention the amount of money that they can borrow will depend on how much they earn. But now Lending Companies use Technologies, and the procedure now is easier than before.
We can see a lot of Social Media posts from Online Lending Companies that seem to have Requirements that are easy to comply with, sometimes with just 1 Identification Card, you can now ask for Money. Yes seems easy but there is a catch that most borrowers didn't know, and most of the Online Lending Companies didn't bother to tell.
Sometimes, upon receiving the Loan Amount, they will already deduct the whole interest rate for the Loan Duration, so the borrower will get surprised, but they don't have a choice because they needed the money at that time. And upon receiving the money, and signing the contract, here comes the problem.
90% of us didn't read and understand the different Terms and Agreements of most Companies that we are signing up to. Even if we signed up on our Social Media sites, we just click the check box that says, "I Understand and Accept the Terms and Conditions of this Agreement". Well, as almost every says "Who Cares?" only Lawyers and some Experts only read that, If they are something fishy that is already happening.
Now sometimes what we called "Harassing the Borrowers" was included in that Agreement and we didn't even notice and we just agreed to it, and the Online Lending Companies didn't bother to tell us that "If you don't pay us, we will do this to you"
Ok, aside from that, here is the other side of the story. Most of the Debt Collectors are not working for Online Lending Companies directly, they are hired on Third Party or Outsourcing Companies, or sometimes Freelance. Without knowing the Borrower's full details, the capacity to pay? or even payment histories.
Online Lending Companies can hire almost anyone online, some Virtual Assistants, some Outbound Call Centers, etc. Passing the burden of calling the borrowers every day, just to remind them, ask them, or even demand their Late Payments.
Some Collectors are tasked just to get the payments from you no matter what, because one of the big reasons is that they are just Per Commission Based, meaning they earn from what they can collect, the more they collect, the higher they get paid, if they can't make the Borrowers to pay, they will don\t have any compensation from the companies, even for their effort to ask for payments.
So there is news going around now, that Online Lending Companies are so-called "Harassing their Borrowers" for late payments, yes that's entirely true, but let us keep in mind that if you are a Legit Online Lending Company, you don't want to put your Companies' Reputation in jeopardy, just to collect some late payments.
Sometimes, this is the work of another Unpaid Worker, that will do the unethical thing to do, just to bring food to their tables, eat, and just call it a day, because tomorrow life will continue as is, and the work will have to continue.
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