GLOBAL DOMINION Financing, Inc. (GDFI) said the recent Securities and Exchange Commission (SEC)-reported incident involving debt collection practices was isolated and that it has taken steps to strengthen compliance and oversight in its collection operations.
“While the matter arose from an isolated case, we take it seriously and have taken steps to bolster our compliance and oversight processes, particularly in relation to collection practices,” the corporate told BusinessWorld in an e-mail searching for comment.
“We acknowledge the executive effective imposed by the SEC and respect the Honorable Commission’s decision,” it added.
Global Dominion Financing is a SEC-regulated financial institution providing loans for Filipino customers’ needs, including cars, business capital, tuition, home improvements, emergencies, and medical expenses, with flexible payment options.
The corporate said it’s fully committed to regulatory compliance and maintaining skilled standards in all borrower interactions.
“GDFI maintains compliance and consumer protection frameworks aligned with applicable laws and regulations, and we proceed to strengthen internal controls and monitoring systems to make sure consistent and responsible implementation across our operations and partner engagements,” it noted.
In a press release on Tuesday, the SEC imposed a P50,000 administrative effective on Global Dominion Financing for what it described as debt collection practices that violated applicable rules.
The SEC Financing and Lending Corporations Department (FLCD) found that Global Dominion violated Section 1 (A), (B), and (H) of SEC Memorandum Circular (MC) No. 18, Series of 2019, and Section 4.4 (A), (B), (H), and (I) of the implementing rules and regulations of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA).
The order arose from a borrower’s grievance about third-party agents of the financing firm, who reportedly used road intercepts, repeated text messages demanding immediate partial payments, and threats over late payments.
Other than the effective, the Commission ordered Global Dominion to stick to debt collection standards under the law, while noting that repeat violations could end in higher fines or suspension/revocation of its operating authority.
MC 18 and the FCPA prohibit debt collection practices that use or threaten violence or criminal means to affect an individual, status, or property; the usage of insulting or profane language against borrowers; and contacting individuals in a borrower’s contact list, apart from guarantors or co-makers. — Alexandria Grace C. Magno