The Securities and Exchange Commission (SEC) of the Philippines has intensified its regulatory oversight on online lending platforms (OLPs) by issuing cease and desist orders against seven operators found to be operating without proper registration.
The affected entities include 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. These companies were identified as conducting lending-related transactions without securing the necessary approvals from the SEC, thereby violating the regulatory framework governing such financial services.
The cease and desist orders extend beyond the companies themselves to encompass their owners, operators, promoters, representatives, agents, and any individuals acting on behalf of these entities. The SEC cited violations of SEC Memorandum Circular 19, Series of 2019, which mandates that all financing and lending firms disclose their OLPs. Additionally, these operations contravened the moratorium on the registration of new OLPs implemented on November 5, 2021.
The Financial Products and Services Consumer Protection Act grants the SEC the authority to enforce measures, including cease and desist orders, to address noncompliance with legal provisions and rules pertinent to financial service providers. According to the SEC’s Financing and Lending Companies Department, the unregistered and undisclosed operations by these companies circumvent the commission’s regulatory and supervisory functions. This noncompliance exposes the public to significant risks, such as aggressive debt collection practices, unfair interest rates, and potential breaches of data privacy rights.
The SEC’s decisive actions are aimed at mitigating further harm to the public and preserving the integrity of the regulatory framework that governs lending companies. By halting these unauthorized operations, the SEC underscores its commitment to enforcing compliance and protecting consumer interests in the evolving financial services landscape.
