Ethical Concerns in Digital Lending Platforms in Negros Occidental

This study examines the ethical practices of digital lending platforms in Negros Occidental, Philippines, focusing on compliance with data privacy regulations and the prevalence of predatory lending behaviors. A mixed-methods approach was used, combining document analysis of privacy policies from five major platforms—GCash (GLoan/GCredit), Tala, Home Credit, Cashalo, and MoneyCat—with survey data from 30 borrowers in the province. Findings from the document review show that GCash and Tala demonstrated relatively strong compliance with the Data Privacy Act of 2012 (RA 10173), providing clear consent procedures and transparent policies. In contrast, Cashalo and MoneyCat lacked key disclosures regarding informed consent, data retention, and user rights. Survey results revealed that 43.3% of borrowers experienced unclear interest rates or fees, 20% reported excessive charges, and 33.3% faced aggressive collection tactics, including harassment and third-party contact. These results suggest persistent ethical and regulatory gaps among some digital lenders. The study concludes that while certain platforms follow responsible practices, others demonstrate limited adherence, particularly in less-regulated areas. Recommendations include audit in strengthening enforcement, improving transparency in loan terms, promoting digital financial literacy, and developing local complaint mechanisms to better protect borrowers’ rights.