Philippine raid on suspicious Makati office! Is a POGO behind the online loan company?!

Recently, some borrowers in the Philippines have complained to the authorities that after using certain online lending apps, they not only encountered exorbitant high interest rates but also suffered from relentless harassment by collection agents, even receiving threats to their lives. Some individuals, despite having paid off their loans, were still forced to continue borrowing, falling into a bottomless pit of debt cycles.

The Presidential Anti-Organized Crime Commission (PAOCC) and the National Bureau of Investigation (NBI) have launched investigations and conducted a raid on a suspected office involved in Makati. The investigation revealed that the operators of these online lending platforms might be associated with Philippine Offshore Gaming Operators (POGO).

Law enforcement officials stated that they have received numerous complaints, with some borrowers unable to withstand the pressure from collectors, experiencing mental breakdowns, and even some choosing extreme measures to end their lives. "Online lending has not only ruined their financial status but also destroyed their mental health," said NBI case agent lawyer Rick Espino.

The tactics of these online lending apps are extremely toxic: they approve loans very quickly, but the interest rates are frighteningly high, and they require borrowers to provide access to their contact lists and phone galleries when applying for loans. Once overdue, the collection agents can access the borrower's personal information, bombard them with calls, and even Photoshop threats, making the borrowers overwhelmed. Moreover, they induce borrowers to "rob Peter to pay Paul," using new loans to pay off old ones, causing the debt to snowball and trapping them in a deep abyss.

Currently, although no behind-the-scenes bosses of the online lending platforms have been arrested, the collection agents responsible for harassing customers might face criminal charges. Law enforcement agencies are conducting in-depth investigations into the backgrounds of these online lending companies and trying to ascertain their connections with POGO. PAOCC Executive Director Cruz revealed that some POGO practitioners turned to online scams after the ban was tightened, and the operational models of these online lending companies are very similar to those of the POGO scam gangs uncovered in the past.

Authorities have stated that they are intensifying law enforcement efforts and are calling on victims to actively report, in order to eradicate these illegal online lending organizations as soon as possible and protect the legitimate rights and interests of borrowers.