SEC issues cease and desist orders against six financing, lending firms

MANILA, Philippines — The Securities and Exchange Commission (SEC) has issued cease and desist orders (CDOs) against six financing and lending companies that are not compliant with the commission’s rules and regulations.

In a statement, the SEC said that pursuant to Republic Act No. 11765, or the Financial Consumer Products and Services Consumer Protection Act, the CDOs were issued against the following financing and lending companies:

1. 9F Lending Philippines Inc.
2. Elending Lending Inc.
3. Hovono Lending Corp.
4. Makati Loan Inc.
5. Second Pay Financing Inc.
6. Tekwang Lending Corp.

In a statement, the SEC said these financing and lending companies failed to comply with the following
memorandum circulars and orders:

1. MC No. 03, Series of 2022, which requires the submission of the Impact Evaluation Report on or before Jan 15 of each year beginning 2023

2. MC No. 28, Series of 2022, which requires the submission of an official e-mail and contact number

3. MC No. 19, Series of 2019, which requires the disclosure of advertisements and reporting of online lending platforms

4. Order dated 07 February 2024, which requires the submission of complaints handling mechanism

5. Order dated 06 July 2023, which requires registration with the Credit Information Corporation

6. Order dated 08 June 2023, which requires the submission of the list of third-party service providers

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The SEC said these companies, including their owners, operators, promoters, representatives, and agents are directed to immediately cease and desist from engaging in, carrying out, promoting (which includes offering and advertising) their lending business through the internet and/or any other media, and facilitating any lending activity or transaction.

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