SEC warns vs illegal lending via FB, Twitter
THE Securities and Exchange Commission warned the public against transacting with unregistered online lenders advertising in Facebook and Twitter.
SEC advised prospective borrowers to check with the Commission if the online lending companies are registered and have a Certificate of Authority to operate as a lending company.
Many have been duped into remitting processing fees after filing applications only to find out the lender could no longer be contacted and the applicants are blocked from accessing the lender.
The Commission also warned of invasive collection practices adopted even by some SEC-registered lenders by using the personal information of borrower, humiliating and insulting borrowers who could not pay their loans.
R.A 9474, or the Lending Company Regulation Act of 2007, provides that “no lending company shall conduct business unless granted an authority to operate by the SEC.” Any person who shall engage in the business of lending without a valid authority to operate may face a fine ranging from P10,000 to P50, 000 or imprisonment of six months to 10 years or both.
SEC has so far revoked the Certificates of Registration of 2,081 lending companies for their failure to obtain the required authority to operate as a lending or financing company. The Commission has also issued Cease and Desist Orders against lending applications such as Cash Whale, Cash 100, Cashafin, CashMaya, ET Easy Loan, among others.
Share your Comments or Reactions
Powered by Facebook Comments
