The Securities and Exchange Commission (SEC) has revoked the authority of Super Cash Lending Corp. to operate as a lending company, for implementing unfair debt collection practices.
In a statement released Monday, the SEC said its Corporate Governance and Finance Department (CGFD) found Super Cash — through its online lending platforms Super Cash, Cash Porter, and Loan Bee — liable for nine violations under an order dated November 11.
Super Cash was reported to have threatened borrowers with shaming on social media through the publication of their loan and personal details, as well as with estafa and theft charges; threatening them to be blacklisted with the National Bureau of Investigation (NBI); and using profane and abusive language to collect debts.
"Worse, in one of the screen captures submitted by one of the complainants, messages showing threats of inflicting grave physical harm upon the person of the complainant could be seen. These unfair collection practices are all too obnoxious to ignore," the CGFD said.
"[T]he revocation of respondent’s [certificate of authority] is not merely appropriate, but rather necessitated by the gravity and number of its offenses," it added.
Under SEC Memorandum Circular 18, violators of the corporate regulator's efforts to curb unfair lending and financing practices may face either a monetary fine, a suspension, or revocation of the certificate of authority depending on the gravity of the case.
"We respect the right of lending and financing companies to formulate and adopt certain strategies to effectively collect debts and secure their profitability," said SEC commissioner Kelvin Lester Lee.
"However, harassment and other abusive or predatory practices will never be acceptable and tolerated. As we pursue erring lending and financing companies, we also advise the public to be cautious and mindful of their transactions with entities representing themselves as such," he added.
The corporate regulator earlier this year revoked the certificate of authority of FCash Global Lending Inc. for committing unfair debt collection practices. It previously operated online lending platforms Fcash, Fast Cash, and Fast Cash Loan, and had one of the most number of complaints for collection harassment.
Other lending applications — CashAB, CashOcean, KwikPeso, and LittleCash — were also ordered to cease operations for lack of authority to operate as a lending or financing company. They were also found by the SEC to have employed abusive collection practices.—AOL, GMA News