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SEC revokes SunCash Lending’s license over unfair debt collection practices, disclosure violations

The Securities and Exchange Commission has canceled SunCash Lending Investors Corp.’s registration and certificate of authority due to unfair debt collection practices and breach of disclosure obligations.

According to the SEC, SunCash Lending had employed unfair debt collection practices, including threatening borrowers with shaming on social media and disclosing personal information to the borrower’s contact list, in violation of memorandum circular (MC) 18.

The company was also found to have violated MC 19 for failing to properly disclose its online lending platforms.

In addition, SunCash Lending failed to pay its annual fees and did not file its interim financial statements for the first semester of 2020 and the second semester of 2019 and 2020.

The revocation of the company’s corporate registration was also deemed appropriate due to the severity and duration of the company’s violations.

SunCash Lending was previously the subject of a joint operation by the SEC Corporate Governance and Finance Department, the SEC Enforcement and Investor Protection Department, and the Philippine National Police Anti-Cybercrime Group in December 2022, resulting in the arrest of 83 company directors, officers, agents, and employees and the discovery of unauthorized online lending applications.

Milyonaryo | Latest News