THE Securities and Exchange Commission (SEC) has issued cease-and-desist orders against seven entities accused of operating online lending platforms (OLPs) without the required registration.
In a press release on Monday, the SEC said its Financing and Lending Corporations Division (FinLend) issued separate orders dated Aug. 15 against Money Konek, Pesosuki, Yescom Lending-Quick Money Loan, Peso101-Fast Loans PH, Peso Cow-Mabilis Pera Loan, Swiftloan: Loan App Philippines, and Pera Loan: Fast Money PH.
The regulator directed the entities, including their owners, operators, promoters, representatives, agents, and others acting on their behalf, to stop offering, promoting, or facilitating lending-related transactions until they secure the essential registration and approval.
“In light of the [companies’] continued unauthorized operation of [their OLPs], the commission finds it essential to issue [these cease-and-desist orders] in an effort to prevent further harm or prejudice to the general public, and to safeguard the integrity of the regulatory framework governing lending firms,” the orders read.
The commission said the operation of unrecorded OLPs violates SEC Memorandum Circular (MC) No. 19 issued in September 2019 that requires financing and lending firms to reveal their OLPs, in addition to the moratorium on the registration of latest OLPs imposed under MC No. 10 issued in November 2021.
Under Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act, the SEC is permitted to impose enforcement actions, resembling a cease-and-desist order, against financial service providers for noncompliance.
“The businesses’ operations of unregistered and undisclosed OLPs circumvent the commission’s regulatory and supervisory authority, thereby exposing most of the people to potential risks, resembling abusive and unfair debt collection practices, unjust rates of interest, and violation of knowledge privacy rights,” the SEC said.
The SEC has been intensifying its monitoring and enforcement efforts on each registered and illegal online lending platforms.
In June, the SEC FinLend issued an order directing firms operating online platforms and mobile applications to offer landline numbers for each their principal offices and branches to strengthen the commission’s monitoring of financing and lending firms.
The corporate’s name and address must match those declared in its articles of incorporation, the order said.
“The SEC is remitted to perform the state’s policy under the Financing Company Act (FCA) and Lending Company Regulation Act (LCRA) to, amongst others, regulate the establishment of financing and lending firms to put their operation on a sound, efficient, and stable condition to derive the optimum benefits from them as a further source of credits, and to forestall and mitigate, so far as practicable, practices prejudicial to the general public interest,” the order said.
BusinessWorld was unable to achieve Money Konek, Pesosuki, Swiftloan, Pera Loan, Peso101, and Peso Cow, as their web sites and Facebook pages couldn’t be found.
Yescom Lending-Quick Money Loan had yet to reply to BusinessWorld’s e-mailed request for comment as of press time. — Revin Mikhael D. Ochave