SEC halts another batch of unlicensed online lending apps

The Securities and Exchange Commission (SEC) on Monday said it has issued cease and desist orders against a dozen more online lending operators that are not registered and do not have licenses to operate.

The owners, operators, and agents of the following online lenders were ordered to stop their unauthorized activities that are being advertised on social media:

•     A&V Lending Mobile
•     A&V Lending Investor
•     A.V. Lending Corporation
•     Cashaku
•     Cashaso
•     CashEnergy
•     Happy Loan
•     Peso Pagasa
•     Vito Lending Corp.
•     Phily Kredit
•     Rainbow-Cash
•     Rainbowcash.Ph Lending Corp.

According to the SEC, the Lending Company Regulation Act of 2007 provides that “no lending company shall conduct business unless granted an authority to operate by the SEC.”

The commission warned that violators may face fines ranging from P10,000 to P50,000 or imprisonment of six months to 10 years.

An SEC investigation revealed that operators of these lending apps were able to gain access to borrowers’ personal information.

“The online lending operators then used such information to exact prompt payment. They would send a text blast to the borrower’s contacts to inform them about the borrower’s indebtedness and his/her supposed refusal to pay the amount due. In other cases, the borrower would be threatened of legal action or public shaming,” the SEC said.

These are “unfair debt collection practices” which are prohibited by the commission.

The SEC had issued cease and desist orders against 30 other online lending applications. —Dona Magsino/VDS, GMA News