The Securities and Exchange Commission (SEC) has ordered seven online lending operators to cease operations after they were found to be operating without proper registration.
In separate orders dated August 15, the SEC’s Financing and Lending Companies Department (FinLend) directed 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 to stop offering lending services.
The cease-and-desist orders (CDOs) also apply to the companies’ owners, operators, agents, and all persons acting on their behalf.
According to the SEC, the firms violated SEC Memorandum Circular No. 19, Series of 2019, which requires financing and lending companies to disclose their online platforms, as well as the moratorium on new online lending platforms under MC No. 10, Series of 2021.
The regulator warned that such unregistered operations undermine its oversight authority and put the public at risk of unfair debt collection practices, excessive interest rates, and data privacy violations.
“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,” the orders stated.
The move was anchored on Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act, which empowers the SEC to enforce actions against erring financial service providers.
