SEC orders closure of 5 online lenders
The Securities and Exchange Commission (SEC) has ordered the immediate shutdown of five online lending operators that are offering loans to the public without authority to do so.
In an order issued February 3, the SEC en banc directed Tacoloan, VCash, 365 Cash, SwipeCash, and BootCash to immediately stop their lending and financing businesses as well as 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 companies, their agents, representatives and promoters, as well as the owners and operators of their hosting sites, were further enjoined to cease from offering and advertising their lending business through the internet or any other media, and to remove all materials involving such.
The SEC found out that all of these five entities have not registered as a corporation. Neither have they secured CAs from the corporate watchdog. It thus said the issuance of a cease and desist order (CDO) was warranted in these cases “not only to stop the illegal act, but also to prevent the continued fraud on the public who are led by the online lending operators to the belief that they are a legitimate business.”
In addition to their illegal operations, the SEC has also received complaints about the unfair debt collection practices of the online lending operators.
Subscribe to our business newsletter
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.