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Lending applications halt operations due to SEC restrictions violation.

Securities and Exchange Commission (SEC) announces companies' violation of regulations mandating the disclosure of their Order Lifecycle Processes (OLPs), and their insubordination to a ban on registering new platform developments.

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Lending applications suspended for violating SEC's prohibition period
Lending applications suspended for violating SEC's prohibition period

Lending applications halt operations due to SEC restrictions violation.

SEC Issues Cease and Desist Orders Against Seven Unregistered Online Lending Platforms

The Securities and Exchange Commission (SEC) in the Philippines has taken action against seven online lending platforms, aiming to safeguard the public from potential risks associated with unregistered online lending platforms (OLPs).

The seven platforms, which include 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, have been issued cease and desist orders by the SEC's Financing and Lending Companies Department (FinLend).

The orders were issued on August 15, with the intention to prevent further harm or prejudice to the public. The SEC's enforcement action is authorized under the Financial Products and Services Consumer Protection Act, and is part of its efforts to regulate the online lending industry in the Philippines.

The SEC claims that the companies' operation of unregistered OLPs violates SEC Memorandum Circular (MC) No. 19, which requires lending firms to disclose the OLPs they operate. The companies have been directed to immediately stop any lending-related transactions.

The public is at risk due to the non-compliance of the companies with SEC regulations. The risks to the public include, but are not limited to, abusive debt collection practices, unfair interest rates, and violations of data privacy rights.

The cease and desist orders were issued to protect the public from potential risks associated with unregistered OLPs. The orders cover the companies' owners, operators, and agents.

It's worth noting that there is no publicly available information on the names of the individuals who lead and operate these seven online lending companies.

The moratorium on the registration of new OLPs was placed by MC No. 10 as of November 5, 2021. The SEC's cease and desist orders are intended to protect consumers from unregistered online lending platforms, and aim to safeguard the integrity of the regulatory framework governing lending companies.

The SEC's actions are a clear indication of its commitment to regulate the online lending industry and protect consumers in the Philippines.

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