The National Privacy Commission ('NPC') issued, on 4 January 2023, the Circular No. 2022-02 amending certain provisions of NPC Circular No. 20-01 on the guidelines on the processing of personal data for loan-related transactions, which was published on 14 September 2020. In particular, the NPC noted that under the Circular No. 2022-02, the amendments cover the processing of personal data for evaluating loan applications, granting loans, collection of loans, closure of loan accounts, character references, and a new provision added for guarantors.

Moreover, the NPC highlighted that the amended Circular No. 2022-02 further addresses the data privacy concerns due to the prevalence of online lending. Furthermore, the NPC provided that, amongst others, the Circular No. 2022-02 allows the processing of a borrower's contact information for identity verification and to check the truthfulness of the information provided by borrowers. However, the NPC emphasised that the Circular No. 2022-02 notes that the processing must not be unbridled or unconstrained, excessive, and disproportional to its purpose, including:

• processing that leads to harassment;
• processing for collection of debt outside of the guarantors provided by the borrower; and
• processing that results in unfair collection practices.

Lastly, the NPC outlined that the Circular No. 2022-02 protects the data privacy rights of a borrower's character reference and guarantor.

You can read the press release here and the Circular No. 2022-02 here.