SEC Junks uses 3 online lenders
September 1, 2022 | 00:00
MANILA, Philippines — The Securities and Exchange Commission (SEC) has dismissed petitions from three online lending operators who allegedly carried on business without the necessary license from the commission.
The SEC said it had made permanent its cease-and-desist order against online lending operators Skymart, Withu and Spendcash.
The commission en banc dismissed the respective motions filed by Skymart, Withu and Spendcash to lift the cease and desist order dated February 10 for lack of merit.
The cease and desist order was issued by the commission en banc after finding that the three entities engaged in lending and financing activities without obtaining the necessary licenses from the SEC.
They were also found to have violated relevant regulations such as the requirement for registered lending and finance companies to disclose and report their online lending platforms to the SEC, and the prohibition on abusive trading practices. Debt recovery.
The Loan Company Regulation Act of 2007 or Republic Act 9474 requires persons or entities operating as loan companies to register as companies and obtain the necessary authorization from the SEC to operate.
In addition, the SEC said it has found that online lenders impose onerous and unreasonable terms, charge high interest rates, and perform acts that violate the privacy rights of their borrowers.
The commission en banc, in its resolution declaring the cease and desist order permanent, said the registered companies expected to operate the three loan companies failed to comply with SEC Memorandum Circular 19, Series of 2019, which requires lending and finance companies to declare all their existing online lending platforms.
According to the SEC, the registration of online lending platforms was not completed until eight days after the cease and desist order was issued and months after the deadline for such registration expired.
The SEC assured the public that it regularly monitors loan and finance companies to ensure they comply with applicable laws, rules and regulations, as it seeks to protect borrowers from predatory lenders, contrary to the ethical and illegal.