The SEC said Super Cash Lending Corp., operating through its online lending platforms Super Cash, Cash Porter, and Loan Bee, threatened borrowers with shaming on social media through the publication of their loan and personal details, as well as with estafa and theft charges.
The National Privacy Commission (NPC) has issued a circular in response to numerous complaints that online lenders were illegally using personal data of clients and those of others on their contact lists, causing damage to their reputation and violating their rights as data subjects.
Under the Lending Company Regulations Act, investors or entities that offer money for lending as a business need to incorporate and register with the SEC, while the BSP also has jurisdiction over lending firms because of its power to supervise activities like “credit granting,” which is essentially lending.
There's an estimated 124 fintech lenders in the Philippines comprising of 75 mobile apps, 40 Web-based, and five brick-and-mortar with tech platform. But less than half of these firms are registered with the government.
Based on the data of 1.52 millions of Filipinos who have used online lending services in 2019, the analysis has shown that urbanization facilitates online lending.
