SEC files criminal complaints vs Easypeso operator

MANILA, Philippines — The Securities and Exchange Commission (SEC) has filed charges against the employees, officers and owners of the operator of online lending application Easypeso for engaging in abusive collection practices.

The commission, together with the National Bureau of Investigation (NBI) and the National Privacy Commission, has lodged criminal complaints with the Department of Justice (DOJ) against 173 employees of Creditable Lending Corp. as well as its incorporators, officers, directors and beneficial owners.

They were charged for violating the Financial Products and Services Consumer Protection Act and the Data Privacy Act. 

In addition, they were implicated for misuse of devices and illegal access in violation of the Cybercrime Prevention Act.

The SEC said the filing of the complaint stemmed from  the implementation by law enforcement agencies of the search warrants issued by Branch 46 of the Regional Trial Court of Manila against Creditable Lending, which led to the arrest of the company’s employees at its office in Pasig City on July 15.

Items seized during the operation include computers, company-issued phones, pre-registered SIM cards, text blasters as well as scripts that were allegedly used by the employees to harass borrowers during collection, the commission said.

 Following the raid, the SEC Financing and Lending Companies Department issued a cease and desist order against Creditable Lending and Easypeso, including any and all persons acting on their behalf, directing them to immediately stop promoting and facilitating any lending activity or transaction.

The SEC said that Creditable Lending has been a subject of the discussions of the Task Force on Online Lending Application, a dedicated group established to lead the crackdown on lending operators engaged in unfair debt collection practices, following increasing reports of harassment committed by lenders.