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 statement on Monday, the SEC said its Financing and Lending Companies Division (FinLend) issued separate orders dated Aug. 15 against 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.
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 necessary registration and approval.
“In light of the [companies’] continued unauthorized operation of [their OLPs], the commission finds it necessary to issue [these cease-and-desist orders] in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies,” 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 disclose their OLPs, as well as the moratorium on the registration of new 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 authorized to impose enforcement actions, such as a cease-and-desist order, against financial service providers for noncompliance.
“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.
The SEC has been intensifying its monitoring and enforcement efforts on both registered and illegal online lending platforms.
In June, the SEC FinLend issued an order directing companies operating online platforms and mobile applications to provide landline numbers for both their principal offices and branches to strengthen the commission’s monitoring of financing and lending companies.
The company’s name and address must match those declared in its articles of incorporation, the order said.
“The SEC is mandated to carry out the state’s policy under the Financing Company Act (FCA) and Lending Company Regulation Act (LCRA) to, among others, regulate the establishment of financing and lending companies to place their operation on a sound, efficient, and stable condition to derive the optimum advantages from them as an additional source of credits, and to prevent and mitigate, as far as practicable, practices prejudicial to the public interest,” the order said.
BusinessWorld was unable to reach Cash Konek, Pesosuki, Swiftloan, Pera Loan, Peso101, and Peso Cow, as their websites and Facebook pages could not be found.
Yescom Lending-Quick Cash Loan had yet to respond to BusinessWorld’s e-mailed request for comment as of press time. — Revin Mikhael D. Ochave
