SEC to shut down eight more online loan applications

Metro Manila (CNN Philippines, September 27) – The Securities and Exchange Commission (SEC) will continue its crackdown on illegal online lending platforms.

In an interview with CNN Philippines Business Roundup, SEC Commissioner Kelvin Lee said more apps were on the chopping block.

“There are eight more that are on our radar. I anticipate the cease and desist order maybe next week,” Lee said.

He added that the SEC is also investigating 64 other online lending platforms.

“Not all are illegal, there are a number that are legitimate. But there are some that deserve a second look,” Lee said.

To date, the SEC has issued cease and desist orders against the following lenders: Binixo, Cash 100, CashBus, Cashcat, Cash Whale, Cashafin, CashFlyer, CashMaya, Cashope, Cashuttle, Cashwarm, Cashwow, Crazy Loan, Creditpeso, ET Easy Loan, Flash Cash, Happy2Peso, Hatulong, Instant Pera, Lendmo Philippines, MeLoan, MoneyTree Quick Loan, Pera Express, Pera4u, Peramart, PesoLending, Peso2Go, QuickPera, QuickPeso and Umbrella.

These companies violated the Loan Company Regulation Act 2007. These companies are required by law to register as a company with the SEC and obtain certificates of authorization to operate.

READ: SEC shuts down 11 other online lenders

The commission received complaints of high interest rates, unreasonable terms and conditions, misrepresentation, privacy violations, harassment and other collection purposes.

The National Commission for the Protection of Privacy (NPC) received approximately 1,000 harassment and invasion of privacy complaints from borrowers who used online lending applications.

Metro Manila Police Chief Major General Guillermo Eleazar led the raid on Fuwei Lending Corporation in Pasig City on Thursday. It said they would file 2012 data protection law violation cases against its five Chinese owners and 49 employees.

The best mangyari dito matigil with ginagawang panloloko and pananakot with ating kababayan nagreresulta sa kanilang kahihiyan at the same time a violation of the privacy of ng kanilang according to the law, ”Eleazar said.

[Translation: We want to stop them from scamming and intimidating our countrymen, which result to their shame and at the same time violating their right to privacy in accordance to the law.]

How can borrowers protect themselves?

The SEC on September 20 issued Circular Memorandum 19. This would give finance and loan companies until October 5 to comply with the requirement to publish their compliance with SEC regulations on their website. easily accessible to the public.

“All finance and loan companies are expected to register all of their online platforms as trade names with the SEC. the online platform, proof of compliance with our circular memorandum, ”said Lee.

The circular would also require companies to disclose their company name, SEC registration number and certificate of authorization to operate a finance or loan company.

In addition to verifying these requirements, Lee advised potential borrowers to do their due diligence. A list of registered finance and loan companies can be found on the SEC website.

“We encourage responsible borrowing. Borrowers are encouraged to review and exercise due diligence,” Lee said.

Complaints against illegal or shady lending practices can be filed with the SEC, while complaints against data privacy breaches can be filed with the NPC.

“By law, the SEC is the primary regulator of loan and finance companies,” said the commissioner.

SEC Circular Memorandum 18, issued on August 20, sanctions unfair collection practices such as the use of threats, obscenities and insults, the publication of personal information of borrowers who allegedly refuse to pay debts. debts, false statements and calls to borrowers between 10 p.m. and 6 a.m. without their consent.

Violators could face fines of 25,000 to 1 million yen and could have their certificates of authorization to operate revoked.

“With this circular memorandum, we have broadened our reach, broadened our reach, in an effort to ban all of these abuses,” Lee said.

The SEC is also considering an online loan financial literacy program.

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David A. Albanese