The SEC released for public comment the draft guidelines on November 19, following the imposition of a moratorium on the registration of new online lending platforms (OLPs) on November 5.
Sen. Sherwin Gatchalian said the liability of lending firms should not only be administrative as some of the acts committed against financial consumers already constitute criminal accountability such as infringement of data privacy and cyber harassment.
The Securities and Exchange Commission (SEC) has revoked the Certificate of Authority (CA) of Familyhan Credit Corporation to operate as a lending company after it engaged in unfair debt collection practices.
In what is believed to be the first case of a local firm found violating the data privacy law, the National Privacy Commission (NPC) has recommended the criminal prosecution of Fynamics Lending Inc., the operator of the PondoPeso online lending application that was the subject of numerous data privacy complaints.
The NPC ordered online lender Familyhan to immediately take down its master database online to prevent more people from gaining unauthorized access to it.
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.
