Inquirer
Zubiri flags lack of law capping interest rates on online lending apps
Senate Majority Leader Juan Miguel "Migz" Zubiri is pushing for stricter regulations on online lending applications due to predatory interest rates and lack of transparency.
Zubiri highlighted that online lending applications currently have no interest rate caps, with some reportedly charging exorbitant weekly rates.
The Securities and Exchange Commission (SEC) confirmed that the Usury Law has been suspended without a replacement, allowing these high rates.
SEC counsel Atty. Romarie Abrazaldo stated that loan transactions are covered by civil law, and what is agreed upon in the contract between the lender and borrower is what is followed.
Zubiri likened these unchecked lending practices to "mafia" and "Yakuza" operations, especially affecting ordinary Filipinos and minimum wage earners who may not understand contract terms.
He is advocating for the Bangko Sentral ng Pilipinas (BSP) to take over regulatory authority for online lending operations.
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