SEC, PNP bust illegal lending scheme

MANILA  -Eight individuals working for a lending operator based in Pasig City were arrested during a  joint operation conducted by the Securities and Exchange Commission (SEC) and the Philippine National Police (PNP).

In a statement on Monday, the SEC said the operators, managers, employees and agents of Realm Shifters BPO Services/FESL BPO Services were busted last May 16 for engaging in illegal lending practices.

The Eastern Police District Mobile Force Battalion, PNP Intelligence Group, and the Special Weapons and Tactics Philippines also participated during the operation.

The Pasig City Regional Trial Court Branch 159 issued the search warrant against Real Shifters registered owner Jennifer Mangubat and other company employees for “misuse of device,” which includes “offenses against the confidentiality, integrity and availability of computer data and systems.” No further information was provided regarding the case.

The regulator shared there have been several complaints for violating the policies, including abusive debt collection practices such as shaming on social media and even issuance of death threats against the borrowers.

“The SEC warned that those who engage in abusive debt collection practices may now be criminally prosecuted for violation of Section 8(d) of the Financial Products and Services Consumer Protection Act (FCPA),” the government agency said.

The SEC FCPA implementing rules and regulation noted that individuals who violated such a provision would be penalized with a fine of up to P2 million or five years of imprisonment, or both.