The Securities and Exchange Commission (SEC) said Tuesday it issued cease-and-desist order against six financing and lending companies which are not compliant with the rules and regulations of the commission.
The six firms that were ordered to stop operations were 9F Lending Philippines Inc., Elending Lending Inc., Hovono Lending Corp, Makati Loan Inc., Second Pay Financing Inc. and Tekwang Lending Corp.
It said the order was issued pursuant to the Republic Act No. 11765, or the Financial Consumer Products and Services Consumer Protection Act.
These firms failed to comply with the rules provided under memorandum circular issued by the SEC, the corporate regulator said.
It said these rules include submission of an official e-mail and contact number, disclosure of advertisements and reporting of online lending platforms, registration with the Credit Information Corp. and submission of the list of third-party service providers.
“These financing and lending 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,” the SEC said.
The SEC said it has been going after lending firms for engaging in illegal activities and unfair debt collection practices.
It issued draft rules in 2021 for the registration and operation of online lending platforms (OLPs) to eradicate abusive and predatory practices.
