SEC suspends operations of five online lenders

The Securities and Exchange Commission (SEC) said on Tuesday that it had blocked five other online lending operators from conducting lending activities without prior authorization.

In a statement, the commission said a Feb. 3 order directed Tacolan, VCash, 365 Cash, SwipeCash and BootCash to cease and desist from trading “until they have incorporated and obtained from from the SEC their respective certificates of authorization to operate as a loan or finance company (CA).”

“The companies, their agents, representatives and promoters, and the owners and operators of their accommodation sites, have been further directed to cease offering and advertising their lending business via the Internet or any other media. , and to remove any material involving such,” the SEC added.

The commission said the order comes after finding that none of the operators are registered as companies and have obtained CAs.

The Loan Companies Regulation Act 2007 requires those operating as loan companies to register as companies and obtain the necessary license to operate from the commission.

“[T]The commission thus observes and retains that the issue of a CDO is justified in this case not only to put an end to the illegal act, but also to prevent the continuation of fraud on the public which is brought by loan operators online to believe they are a legitimate business,” the en banc commission said.

The commission added that it had also received complaints about unfair debt collection practices by online lending operators.

The cease and desist (CDO) order is the second issued by the SEC this year, following one issued against Goodpocket and EasyMoney online lending earlier.

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