The Securities and Exchange Commission (SEC) has issued cease and desist orders (CDO) against seven companies for operating unregistered online lending platforms (OLP).
The SEC said it issued cease and desist orders to Cash Konek, Pesosuki, Yescom Lending-Quick Cash Loan, Peso101-Fast Loans PH, Peso Cow-Mabilis Pera Loan, Swiftloan:Loan App Philippines, and Pera Loan: Fast Cash PH, last August 15. The SEC flagged them for promoting or facilitating lending-related transactions without the necessary registration and approval from the SEC.
“The orders also cover the companies’ owners, operators, promoters, representatives, agents, and any and all persons claiming or acting on their behalf,” the SEC said in a statement on Monday, August 25.
The SEC said the companies have violated its order that requires financing and lending firms to disclose their OLPs.
It said the firms’ unrecorded OLPs violated SEC Memorandum Circular (MC) No. 19, Series of 2019, which requires financing and lending firms to disclose their OLPs, while their operations violate registration policies.
It said Republic Act 11765, otherwise known as the Financial Products and Services Consumer Protection Act, “authorizes the SEC to impose enforcement actions, such as a CDO, against financial service providers for noncompliance with the provisions of the law, its implementing rules, and other applicable laws.”
They also violated the moratorium on the registration of new OLPs the SEC issued in November 2021.
“The companies’ operations of unregistered and undisclosed OLPs circumvent the Commission’s regulatory and supervisory authority, thereby exposing the general public to potential risks, such as abusive and unfair debt collection practices, unjust interest rates, and violation of data privacy rights,” the SEC said.
“In light of the [companies’] continued unauthorized operation of [their OLPs], the Commission finds it necessary to issue [these CDOs] in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies,” it added.
Malaya Business Insight tried to get a complete list of all erring lending firms that have been penalized by the SEC but the information was not available as of press time. (With reports from the PNA)
