SEC halts operations of 7 more online lenders

MANILA, Philippines — The Securities and Exchange Commission (SEC) continues to crack down on unregistered online lending platforms (OLPs), issuing cease and desist orders against seven more operators.

The commission has ordered 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 operating OLPs that are not registered with the SEC.

These entities were found promoting or facilitating lending-related transactions without the necessary registration and approval from the commission.

The orders also cover the owners, operators, promoters, representatives, agents and any and all persons claiming or acting in behalf of the seven companies.

The SEC said that operations of the companies’ unrecorded OLPs constitute a violation of SEC Memorandum Circular 19, Series of 2019, which requires financing and lending firms to disclose their OLPs.

The commission said that the operations also violated the moratorium on the registration of new OLPs imposed on Nov. 5, 2021.

The Financial Products and Services Consumer Protection Act authorizes the SEC to impose enforcement actions, such as a cease and desist order, against financial service providers for noncompliance with the provisions of the law, its implementing rules and other applicable laws.

The companies’ operations of unregistered and undisclosed OLPs circumvent the commission’s regulatory and supervisory authority, thereby exposing the public to potential risks, such as abusive and unfair debt collection practices, unjust interest rates and violation of data privacy rights, according to the SEC Financing and Lending Companies Department.

“In light of the companies’ continued unauthorized operation of their OLPs, the commission finds it necessary to issue (these cease and desist orders) in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies,” the order stated.