NextGen Day

The Securities and Exchange Commission (SEC) has ordered five illegal internet lending companies to cease operations unless the commission gives them permission first.

Tacoloan, VCash, 365 Cash, SwipeCash, and BootCash were ordered by the Commission en banc to cease and desist from operating, engaging in, carrying out, abetting, and/or promoting lending/financing businesses and related activities until they have incorporated and obtained from the SEC their respective certificates of authority to operate as a lending or financing company (CA).

The companies, their agents, representatives, and promoters, as well as the owners and operators of their hosting sites, were also ordered to stop offering and advertising their loan business on the internet or through any other medium, as well as to remove any information related to it.

The SEC issued the order after discovering that none of the organizations are registered as corporations and have not obtained certificates of authority from the commission.

The Lending Company Regulation Act of 2007 (LCRA), or Republic Act No. 9474, requires persons or entities functioning as lending firms to register as corporations and get from the Securities and Exchange Commission (SEC) the requisite authority to operate.

“The commission finds and thus holds that the issuance of a CDO (cease and desist order) is warranted in the instant case not only to stop the illegal act but also to prevent the continued fraud on the public who are led to believe that the online lending operators are a legitimate business,” the SEC en banc said.

“The commission has a duty to strictly execute the terms of the (LCRA), guarantee that the public interest is respected at all times, and safeguard the public from those who engage in unapproved or unlawful lending activities,” the statement stated.

In addition to their illegal activities, the SEC has received complaints concerning internet lending companies’ unethical debt collection techniques.

The SEC has now issued its second CDO this year, this time against illicit lending operators.

The SEC had previously ordered Goodpocket and EasyMoney Online Lending to cease all lending operations until they obtained the requisite licenses from the agency.

Visit the SEC’s lending and financing companies area at https://www.sec.gov.ph/lending-companies-and-financing-companies-2/lending-companies-and-financing-companies/ to see a list of licensed lending and financing companies and their registration status.

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