Connect with us

Hi, what are you looking for?

News

SEC shuts three online lenders

THE SECURITIES and Exchange Commission (SEC) issued a permanent cease-and-desist order against online lending operators Skymart, Withu, and Spendcash for violating the law governing lending companies.

The SEC said on Wednesday that it denied the respective motions of the three entities to lift the halt order dated Feb. 10 for lack of merit.

The order was issued after the commission found that the three entities were engaging in lending and financing activities without securing the necessary licenses from the SEC.

The regulator said the three lending operators violated relevant regulations such as the requirement for registered lending and financing companies to disclose and report their online lending platforms to the SEC.

Republic Act No. 9474 or the Lending Company Regulation Act (LCRA) of 2007 requires persons or entities operating lending companies to register them as corporations and to secure from the SEC the necessary authority to operate.

“[T]he commission finds that the continued operation of the online lending operators constitutes a clear violation of, and should be penalized pursuant to the [LCRA] because it engages in or carries out a lending business without the required license from the commission,” the cease-and-desist order read.

The commission further stated that the acts of the unregistered online lending operators of illegally offering and providing loans to the public at high interest rates, subject debtors to unfair treatment “through abusive and even libelous language in collecting the loaned amount.”

The online lending operators were also found to have been imposing onerous and unreasonable terms, charging high interest rates, and performing acts violating their borrowers’ right to privacy.

“In its resolution to declare the [order] permanent, the Commission En Banc noted that the registered corporations supposedly operating the three lending companies failed to comply with SEC Memorandum Circular No. 19, Series of 2019, which requires lending and financing companies to report all their existing online lending platforms,” the commission stated in the press release.

The SEC has a list of licensed lending and financing companies and their registration status, available in the Lending and Financing Companies corner of its website. — Justine Irish D. Tabile

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.