The Securities and Exchange Commission (SEC) has fined Global Dominion Financing P50,000 for abusive debt collection practices, including the use of aggressive digital communications, as regulators tighten oversight of how financing firms deploy technology in dealing with borrowers.
In a Jan. 28 order, the SEC’s Financing and Lending Companies Department (FLCD) found that the company violated SEC Memorandum Circular No. 18, Series of 2019, and the implementing rules of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA).
The case stemmed from a borrower’s complaint over the conduct of third-party collection agents. Apart from physically intercepting the borrower on the road to demand payment, agents allegedly sent repeated text messages pressing for immediate partial payments and hinting at adverse consequences in case of non-cooperation.
The SEC ruled that such electronic communications amounted to undue pressure and could undermine consumer protection mechanisms, particularly if they deter borrowers from seeking regulatory recourse. Intercepting a borrower without a court order or lawful authority was also deemed illegitimate and coercive.
Regulators stressed that financing firms remain solidarily liable for the acts of their accredited third-party service providers, including those using SMS and other digital tools for collections.
“[Global Dominion] cannot evade administrative accountability by attributing the prohibited acts to collection agents or third-party providers,” the order read, citing the FCPA’s framework on shared liability.
Aside from the P50,000 fine, Global Dominion was warned that repeat violations could result in higher penalties, suspension, or revocation of its certificate of authority.
