6 lending firms charged for harassing clients

MANILA, Philippines — Six companies in Metro Manila and 30 of their affiliates were charged before the Department of Justice (DOJ) yesterday for allegedly harassing clients who cannot pay their debts.

The Securities and Exchange Commission (SEC) filed charges of violating the Lending Company Regulation Act of 2007 and Financial Products and Services Consumer Protection Act against FESL Lending Investor Corp., FESL BPO Services and Realm Shifters BPO Services and Philippine Microdot Financing Corp. in Pasig; U-Peso.ph Lending Corp. in Parañaque and Armorak Lending Inc. in Makati.

Last month, police implemented a search warrant on FESL and Realm Shifters over shaming clients on social media and death threats.

Lawyer Oliver Leonardo, SEC’s enforcement and investor protection director, said yesterday’s filing would be followed by more as the regulator has its eyes set on penalizing SEC-registered firms using unregistered online lending platforms.

Violators face a maximum of five years in prison and a maximum of P2 million in fines.

Leonardo called on citizens who experience abusive collection practices to file complaints with the SEC.