Friday, July 11, 2025

SEC orders 2 online lenders to cease operations

The Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) against two lending companies for operating illegally online.

Those slapped with CDOs are Bravo Zulo Romeo Lending Corp. (BZR Lending) and affiliate Magic Peso.

The SEC said it has ordered BZR Lending and its agents — owners, operators, promoters, representatives, agents, and all persons claiming and acting for and, on their behalf — to immediately refrain from facilitating any lending activity or transaction.

This follows complaints filed by borrowers who reported abusive collection practices, such as threatening them with lawsuits  from online lending platform Magic Peso.

The SEC said an investigation conducted by its Financing and Lending Companies Department (FinLend) revealed that Magic Peso is owned and operated by BZR Lending.

BZR Lending has not disclosed the operation of Magic Peso to the SEC, the FinLend department said.

“This constitutes a violation of SEC Memorandum Circular No. 19, Series of 2019, which requires full disclosure and reporting requirements for financing and lending companies using OLPs,” the SEC said.

“On account of [BZR] Lending’s continuing operation of Magic Peso, the Commission holds that the issuance of a CDO is warranted…not only to penalize the [company], but also to prevent fraud, injury, or harm to the public and financial consumers who are at the [company’s] mercy,” the SEC said in an order.

At the same time, the SEC also issued a cease and desist order (CDO) against Magic Peso for illegally operating an online lending platform (OLP) and for engaging in unfair debt collection practices.

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