By Joann Villanueva
MANILA – Cease and desist orders (CDOs) have been issued by the Securities and Exchange Commission (SEC) against seven online lending firms operating unregistered.
In a statement on Monday, the Commission said the CDOs were issued last 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.
These firms were stopped from “promoting or facilitating lending-related transactions without the necessary registration and approval from the Commission.”
SEC said “the orders also cover the companies’ owners, operators, promoters, representatives, agents, and any and all persons claiming or acting on their behalf.”
It said the firms’ unrecorded online lending platforms (OLPs) violate SEC Memorandum Circular (MC) No. 19, Series of 2019, which requires financing and lending firms to disclose their OLPs while their operations violate registration policies.
It said Republic Act 11765, otherwise known as the Financial Products and Services Consumer Protection Act, “authorizes the SEC to impose enforcement actions, such as a CDO, against financial service providers for noncompliance with the provisions of the law, its implementing rules, and other applicable laws.”
“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, according to FinLend,” it said.
“In light of the [companies’] continued unauthorized operation of [their OLPs], the Commission finds it necessary to issue [these CDOs] in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies,” it added. (PNA)
