The Securities and Exchange Commission (SEC) has ordered three more online lending platforms- Peso Tree, Pesoalo and Pinoy Cash Loan – to immediately stop their illegal operations.
All these three lending platforms were not registered as corporations. None of them holds the necessary certificate of authority to operate as a lending company.
The SEC Commission En Banc issued the order on January 21, enjoining the owners, operators, promoters, representatives, agents and any and all persons claiming and acting for and in their behalf to immediately cease and desist from engaging in, promoting and facilitating unauthorized lending activities.
The SEC likewise ordered Peso Tree, Pesoalo and Pinoy Cash Loan to stop advertising their lending business through the internet and to delete or remove promotional presentations and offerings from the internet.
The Lending Company Regulation Act of 2007 states that a lending company must be established only as a corporation. It further provides that no lending company must conduct business without an authority to operate from the SEC.
Illegal lenders may face a fine ranging from P10,000 to P50,000 or imprisonment of six months to 10 years or both, under Section 12 of the Lending Company Regulation Act.
The SEC earlier issued cease and desist orders covering a total of 48 online lending platforms and their operators for engaging in the business of lending or financing without incorporating and securing a certificate of authority.