SEC orders shutdown of 5 online lenders

The Securities and Exchange Commission (SEC) has ordered the immediate closure of five online lending operators that offer loans to the public without permission to do so.

In an order issued on February 3, the SEC en banc ordered Tacolan, VCash, 365 Cash, SwipeCash and BootCash to immediately cease their lending and financing activities and related activities until they have constituted and obtained from the SEC their respective certificates of authority. operate as a loan or finance company (CA).

The companies, their agents, representatives and promoters, and the owners and operators of their hosting sites, were further directed to cease offering and advertising their lending business via the Internet or any other media. , and to delete any related material.

The SEC found that these five entities did not register as corporations. They also did not obtain certificate authorities from the company’s watchdog. He thus stated that the issuance of a cease and desist order (CDO) was justified in such cases “not only to stop the illegal act, but also to prevent the continuation of the defrauding of the public which is tricked by online loan operators into believing that they are a legitimate business.

In addition to their illegal operations, the SEC has also received complaints about unfair debt collection practices by online lending operators.

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