SEC orders 5 online lending companies to cease operations
The Securities and Exchange Commission (SEC) has issued cease and desist orders against five online lending companies for conducting lending activities without obtaining proper commission authorization.
In an order issued on February 3, the En Banc Commission ordered Tacoloan, VCash, 365 Cash, SwipeCash and BootCash to halt their lending operations until they incorporated and obtained Certificates of Authorization (CA ) to operate as a loan or financing company of the second.
“The SEC issued the order after finding that neither group was registered as a corporation and had not obtained a CA from the Commission,” the regulator said in a statement on Tuesday.
The Loan Companies Regulation Act of 2007 (LCRA) or Republic Act No. 9474 requires individuals or corporations operating as loan companies to register and obtain a CA with the Credit Union Commission. exploitation.
“[T]The Commission thus concludes and maintains that the issuance of a CDO (cease-and-desist order) is justified in this case not only to stop the illegal act, but also to prevent the continuation of the fraud on the public which is led by the Online Lending Operators to believe they are a legitimate business,” the En Banc Commission said.
Besides entities, people involved in offering illegal lending services, such as agents, representatives and promoters, have been ordered to stop offering and advertising their lending transactions online. and remove online advertising media.
The regulator said it has also received complaints about unfair debt collection policies from illegal online lending operators. — Keren Concepcion G. Valmonte