Assessing Awareness of Predatory Mobile Lending Applications Among Residents of Tolosa, Leyte

Abstract

This study examined the level of awareness of predatory mobile lending applications among residents of Tolosa, Leyte, a municipality in Eastern Visayas where poverty incidence remains high. Mobile lending apps have rapidly expanded across the Philippines, offering convenience but also exposing users to exploitative practices such as excessive interest rates, harassment, and privacy violations. Using a quantitative approach, structured surveys were administered to 393 respondents. Results revealed that while mobile lending apps are widely recognized, awareness of predatory lending risks remains critically low, with 85.5% of respondents reporting insufficient understanding of these risks. These findings highlight significant knowledge gaps in financial literacy and underscore the need for targeted educational interventions to protect vulnerable populations.