After revoking the registration and license of online lending operator Digido, the Securities and Exchange Commission (SEC) has ordered two more online lending firms to stop their operations.
In an order dated May 13, the SEC said it has issued a cease and desist order against Hupan Lending Technology for operating an unrecorded online lending platform (OLP) Magic Peso.
The regulator directed Hupan Lending to cease and desist from operating Magic Peso and its declared OLPs, Cashme, Sukiloan, Pesopoly, and Loan Tayo.
“The continuous operation of Magic Peso violates the ongoing moratorium on new OLPs, as provided under SEC Memorandum Circular No. 10, Series of 2021. The SEC views the issuance of CDO as necessary to prevent fraud, injury, or harm to the public and financial consumers who are using Magic Peso,” the SEC said.
The agency, meanwhile, has also cancelled the lending license of Hi-Fin Lending Inc., which operates OLPs Peso Wallet and Credit Cash, for its failure to disclose WeWill Tech Corp. as one of its third-party service providers.
In an order dated May 13, the SEC found that Hi-Fin Lending failed to comply with the order dated June 8, 2023, which requires all financing and lending companies to submit a list of their third-party service providers, as required under Republic Act 11765 or the Financial Products and Services Consumer Protection Act.
Accordingly, FinLenD revoked Hi-Fin Lending’s certificate of authority to operate as a lending company and its primary registration.
