The Securities and Exchange Commission (SEC) has initiated legal proceedings against six lending firms for engaging in abusive debt collection practices and failing to disclose their online lending platforms to the regulatory authority.
Criminal complaints were filed against FESL Lending Investor Corp., FESL Business Process Outsourcing Services, Realm Shifters Business Process Outsourcing Services, U-Peso.ph Lending Corp., Philippine Microdot Financing Corp., and Armorak Lending Inc.
These companies have been found to be in violation of Republic Act No. 11765, commonly known as the Financial Products and Services Consumers Protection Act, which prohibits lending corporations from employing unfair and abusive debt collection practices against borrowers.
Several other corporations, including Fancing PTE. LTD., ScoreOne Technology PTE. LTD., Richie Rise PTE. LTD., and Sharemax Investment Inc., have been implicated due to their connections with the respondent companies.
Under the Lending Company Regulation Act of 2007, or RA No. 9474, it is illegal for a corporation to operate as a lending company without proper authorization from the SEC. Lending and financing companies are mandated to disclose all their online lending platforms to the regulatory body.
In response to the escalating number of complaints against abusive lenders in the country, the SEC’s task force on online lending applications collaborated with the Philippine National Police Anti-Cybercrime Group to conduct a joint operation, with the aim of addressing this issue.
SEC’s goal is to protect the interests of borrowers and uphold the integrity of the lending industry.