The Securities and Exchange Commission (SEC) has halted the operations of Microdot Lending Corp. for running several unreported online lending platforms (OLPs) and engaging in unfair online debt collection practices.
In an order dated September 23, the SEC’s Financing and Lending Companies Department (FinLend) issued a cease and desist order (CDO) against Microdot and its OLPs, including MF Cash, Credit Cash, Credit Peso, Pesoloan Mart, Cash Baka, Cash Mabilis, Go Peso, Instant Loan, and Timely Loan, directing them to immediately stop offering and promoting any lending activities online
Investigators found that Microdot failed to declare the operations of two online platforms — Credit Peso Pro and MF Cash — a clear violation of SEC Memorandum Circular No. 19, Series of 2019, which mandates financing and lending companies to submit a complete list of their online platforms for monitoring.
The SEC has also been receiving numerous complaints from borrowers since 2024, detailing harassment and unethical debt collection through Microdot’s mobile apps and digital channels.
These practices breach the Financial Products and Services Consumer Protection Act (Republic Act No. 11765) and the Lending Company Regulation Act (RA 9474), according to the order
The commission said Microdot’s “blatant disregard” of regulatory directives and operation of undisclosed lending apps could “cause grave or irreparable injury” to borrowers.
The order stressed that its use of digital platforms to collect loans abusively magnifies the potential harm to consumers, especially as mobile lending becomes a dominant mode of borrowing in the Philippines.
