The Securities and Exchange Commission (SEC) has ordered five illegal online lending operators to stop their operations which were found to be without prior authorization from the commission.
The SEC en banc has directed Tacoloan, VCash, 365 Cash, SwipeCash, and BootCash to immediately cease and desist from operating, engaging in, carrying out, abetting, and/or promoting lending/financing businesses and related activities until they have incorporated and secured from the SEC their respective certificates of authority to operate as a lending or financing company (CA).
The SEC issued the order after finding out that not one of the five ventures is registered as a corporation, nor have they secured CAs from the commission.
Republic Act No. 9474, or the Lending Company Regulation Act of 2007 (LCRA), requires persons or entities operating as lending companies to register as corporations and to secure from the SEC the necessary authority to operate.
“The commission is duty-bound to strictly implement the provisions of the (LCRA), ensure that public interest is at all times upheld and the public is protected from persons who carry out unauthorized or illegal lending activities,” it said.
In addition to their illegal operations, the SEC has also received complaints about the unfair debt collection practices of the online lending operators.
Earlier the SEC also directed Goodpocket and EasyMoney Online Lending to stop all lending activities until they have secured the necessary licenses from the commission.
To see the list of licensed lending and financing companies and their registration status, SEC advises the public to visit the lending and financing companies corner on its website at https://www.sec.gov.ph/lending-companies-and-financing-companies-2/lending-companies-and-financing-companies/.