SEC, BSP should be proactive vs unsavory lending apps –Gatchalian

Senator Sherwin Gatchalian on Sunday called on the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) to be proactive in detecting online lending applications that reportedly harass and threaten debtors who fail to pay on time.

Interviewed on Super Radyo dzBB, the lawmaker said that online lending applications have now become “sophisticated,” with some not undergoing BSP registration, and having the ability to track down where their victims are and have them profiled.

“Dapat maging proactive din ang BSP, kasama ang SEC dahil ang SEC nire-regulate naman ang mga korporasyon. Dapat maging active sila na ma-detect ‘yung mga ganitong hindi magaganda at i-report na kaagad sa Apple Store or sa Google Play Store para matanggal,” Gatchalian said.

(The BSP should also be proactive, along with the SEC because the SEC regulates corporations. They should be active in detecting these unsavory practices and immediately report them to the Apple Store or the Google Play Store to be deleted.)

In May, Gatchalian filed Senate Resolution 626 directing the Senate Committee to conduct an inquiry into the proliferation of unauthorized online lending applications and abusive lending corporations.

“[I]t is important that measures are in place that will safeguard the interests of the consumers against trade malpractices, false and misleading advertisements, and other types of misrepresentations," said Gatchalian in his resolution.

"It is equally important that we make sure that such measures are properly implemented and complied with, including ensuring that these applications are authorized to operate by proper government authorities and that they are operating in accordance with the rules and regulations, fair practices and responsible lending.”

The Philippine Association of Loan Shark Victims Inc. (PALSVI), earlier filed cyberbullying, harassment, grave threat, and data privacy complaints against 15 online lenders with the Philippine National Police Anti-Cybercrime Group.

PALSVI’s complaints stemmed from the harassment, humiliation, and threats experienced by its members from the collecting agents of online lenders if they were unable to pay their loans on time.

Gatchalian further reminded Filipinos to be wary of people or organizations that offer to lend them money in an easier and faster way.

“May catch ‘yan o merong kapalit ‘yan dahil ang pagpapautang merong regulasyon ‘yan eh. Lahat ‘yan dumadaan sa BSP. Ang pagpapautang, meron din ‘yang proseso. Pero kung napakabilis…mag-ingat ka kaagad dahil may kapalit ‘yan na hindi maganda,” he added.

(It has a catch or there is a consequence because lending has regulations. All of the organizations go through the BSP. Lending also has a process. But if it's too fast... be careful because that may have a negative outcome.) — DVM, GMA Integrated News