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SEC suspends licenses of 84 lenders

/ 12:30 AM March 24, 2017

In support of President Duterte’s crackdown on usurious lending, the Securities and Exchange Commission has suspended the primary licenses of 84 lending companies which were found conducting lending operations without authority.

The 84 lending companies have failed to obtain secondary licenses, or a certificate of authority, to operate as a lending company required under Republic Act No. 9474 or the Lending Company Regulation Act of 2007.

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Earlier, SEC sent out more than 300 show-cause letters twice to every registered company engaged in lending which did not possess license to operate as such. The show cause letters required the companies to explain why their certificates of registration (as a corporation) should not be suspended in view of their failure to secure the certificate. Out of the 300 letters, 84 were returned to sender.

The SEC suspended the primary licenses of these 84 companies for 60 days. If they still do not respond within the suspension period, proceedings for revocation of their certificates of registration will immediately ensue, the SEC said.

Section 3 of R.A. 9474 defines a lending company as a “corporation engaged in granting loans from its own capital funds or from funds sourced from not more than 19 persons.”
The definition excludes banking institutions, investment houses, savings and loan associations, financing companies, pawnshops, insurance companies, cooperatives and other credit institutions which are regulated by law.

The law also states that no lending company should conduct business unless granted an authority to operate by the SEC.

Director Justina Callangan of the SEC’s Corporate Governance and Finance Department—which is tasked to regulate lending companies—said R.A. 9474 was approved in 2007 and had taken effect in 2008. By this time, she said all persons and entities engaged in lending activity should have secured their corresponding certificates of authority.

Callangan said these entities had been given more than sufficient time to comply with the law.
“The Commission is one with the President in adopting a tough stance against illegal lending,” Callangan added.

Aside from suspension, a fine of not less P10,000 or imprisonment of not less than six months but not more than 10 years or both, awaits those who violate the law.

COMPANIES ON THE LIST

1. “Pautang Bayan” Lending Inc.
2. 3CF Lending Corp.
3. 888 Loans Corp.
4. Addmore Credit Resource Inc.
5. AKA-SH Lending Investors Inc.
6. Alfonso Lending Investor Corp.
7. Alik Lending Investors Corp.
8. Allstate Loans Corp.
9. Alps Credit Corp.
10. Anchor 8 Lending Systems Corp.
11. ANJ Loans Inc.
12. B.M.P Lending Corp.
13. Baliuag Lending Corp.
14. Bathurst Capital Inc.
15. Blou Platinum Corp.
16. Bravo Credit A Lending Investors Corp.
17. C A S Lending, Inc.
18. Cambridge Credit Corp.
19. Cash Agad Lending Inc.
20. Cash and Credit Specialist Lending Investor, Inc.
21. D.G.E.N. Lending Corp.
22. Dhandwal Lending & Trading Corp.
23. Drcube Lending Corp.
24. DRJJ Lending Corp.
25. Erlee Credit Corp.
26. First Binondo Credit Corp.
27. First Kabuhayan Lending Corp.
28. Fortunate Star Lending Corp.
29. Good Samaritan Lending Investors Inc.
30. Goodway Lending Corp.
31. Grants Credit Resources Inc.
32. Gurminder-Harminder Lending & Trading Corp.
33. Harrods Credit Corp.
34. Hedwig Lending Corp.
35. Interlend Credit Corp.
36. Kings Hopewell Group Corp.
37. Lakbir Lending & Trading Corp.
38. Le Maison Lending Inc.
39. List Lending Investor Inc.
40. Lucky “8” Credit and Lending Corp.
41. Milestone Lending Corp.
42. Monarch Loans & Credit Corp.
43. Novo Ecijano Credit Corp.
44. Ongkie Multi Ventures Lending Ivestors Inc.
45. Palmera Lending Investor Corp.
46. Paul & Patrick Lending Investors Inc.
47. Planters Lending Corp.
48. Primerica Credit Corp.
49. Ready Resources Investors Lending Corp.
50. Red Carpet Lending and
Credit Corp.
51. RSB Lending Investors Inc.
52. San Miguel Credit Corp.
53. Sardonyx Lending Investors Inc.
54. Seagal Lending Investors Co. Inc.
55. Sikh Lending & Trading Co. LTD.
56. Sinag Araw Credit Corp.
57. South Pearl Lending & Credit Corp.
58. SVA Loans Credit Corp.
59. Swiss Credit Corp.
60. Tagapaglingkod Credit Corp.
61. Thakuri Lending Corp.
62. The Upholder Lending (Parañaque) Corp.
63. Trendlines Credit Corp.
64. Triumph Loans & Credit Corp.
65. True Worth Lending Corp.
66. Winthex Credit Inc.

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Partnerships

67. A.P. Lending Co.
68. Businessmate Lending Investor Co.
69. Ests Lending Investor Co.
70. Fabconn Lending and Collection Company
71. Fuji Lending Investor Ltd. Co.
72. G R R Lending & Trading Co.
73. Jay Anne Lending Investors & Marketing Co.
74. L and K Credit Partnership
75. Lucky Jewel Lending Co.
76. Nitram Lending & Trading Co. Ltd.
77. Pargat Lending & Trading Co.
78. Satram Lending & Lending Co. Ltd.
79. SM Sons Credit Company 80. Sun Ace Lending Co.
81. Swagat Lending & Trading Co.
82. Uni-loans Lending Co.
83. Vil Star Lending Investor Co.
84. William K Lending Company

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