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MANILA, Philippines — The Securities and Exchange Commission (SEC) has ordered eight online lending companies to halt conducting lending activities without the requisite license, as part of its ongoing crackdown on unlawful lending.

CashWill, PesoBee, Peso T-Safe Online Cash, RushLoan, SkyMart, SpendCash, Tapa, and WithU have been 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 authorization from the SEC to pursue such activities.

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/or advertising their lending business and related businesses on the internet or through any other media and to remove all materials related to it.

The order was issued when the SEC discovered that none of the groups had registered as corporations with the agency.

As a result, they do not have the necessary authorization to function as a lending/financing firm (CA).

The Lending Company Regulation Act of 2007 (LCRA), or Republic Act 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 determines that the online lending operators’ ongoing operation constitutes a clear violation of, and should be fined pursuant to, the (LCRA) because it participates in or carries out a lending business without the appropriate license from the Commission,” the commission en banc concluded.

“The activities of the unregistered online lending operators in illegally promoting and delivering loans to the public, charging exorbitant interest rates, and subjecting its debtors to unfair treatment through abusive and even libelous language in collecting the lent amount,” it stated.

The Commission also discovered that internet lending companies have been imposing onerous and arbitrary terms, charging excessive interest rates, and violating their borrowers’ right to privacy.

The SEC routinely examines lending and financing organizations for their compliance with applicable laws, rules and regulations, as it attempts to safeguard borrowers from abusive, unethical, and unlawful lenders.

Due to different infractions of applicable rules and regulations, the Commission has revoked the licenses of 36 financing/lending companies to date.

It has also canceled the registration certificates of 2,081 lending organizations for failing to obtain the required certificate of authority, as required under the LCRA.

A total of 73 online lending apps have been ordered to shut down due to a lack of authority to operate as a lending or financing company.

Visit the SEC’s lending and financing companies corner at https://www.sec.gov.ph/lending-companies-and-financing-companies-2/lending-companies-and-financing-companies.

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