HE Securities and Exchange Commission (SEC) said it is canceling the lending license of Hi-Fin Lending Inc., which operates online lending platforms (OLP) Peso Wallet and Credit Cash, for its failure to disclose it has tapped WeWill Tech Corp. as a third party service provider (TPSP).
In a statement issued Monday, the SEC said Hi-Fin failed to comply with its June 2023 order requiring all financing and lending companies to submit a list of their TPSPs, as required under the Financial Products and Services Consumer Protection Act (RA11765).
The SEC said that when Hi-Fin submitted the list of its TPSP, it only disclosed the service of 8X8 Philippines Inc., CIBI Information Inc., QuantumKey Services Inc. and Pays0 Inc.
WeWill Tech, which serves as collection agent for Hi-Fin, was only discovered after the National Bureau of Investigation (NBI) and the Presidential Anti-Organized Crime Commission (PAOCC) raided the premises of WeWill Tech in January this year for alleged harassment of customers of online lending platforms.
Separately, the SEC said it has issued a cease and desist order against Hupan Lending Technology Inc. after it was discovered to be operating an unregistered OLP, Magic Peso.
The SEC said Hupan Lending is operating Magic Peso amid an imposed moratorium on new OLPs since 2022.
“The continuous operation of Magic Peso violates the ongoing moratorium on new OLPs, as provided under SEC Memorandum Circular No. 10, Series of 2021. The SEC views the issuance of CDO as necessary to prevent fraud, injury, or harm to the public and financial consumers who are using Magic Peso,” the SEC said.
