SEC orders 7 online lending firms to cease operations

The Securities and Exchange Commission (SEC) issued cease-and-desist orders against seven online lending firms on August 15.

These firms—Cash Konek, Pesosuki, Yescom Lending-Quick Cash Loan, Peso101-Fast Loans PH, Peso Cow-Mabilis Pera Loan, Swiftloan: Loan App Philippines, and Pera Loan: Fast Cash PH—are operating unregistered lending platforms.

The SEC ordered the companies to stop promoting or facilitating lending transactions without proper registration and approval from the Commission until they secure the necessary registration.

These firms' actions violate SEC Memorandum Circular No. 19 of 2019 and expose the public to risks such as abusive debt collection practices, unfair interest rates, and data privacy violations.

The Financial Products and Services Consumer Protection Act authorizes the SEC to take enforcement actions against non-compliant financial service providers like these seven firms.

The Commission stressed that issuing these CDOs is necessary to prevent further harm to the public and maintain regulatory integrity in the lending sector.

BusinessWorld was unable to reach Cash Konek, Pesosuki, Swiftloan, Pera Loan, Peso101, and Peso Cow for comment; Yescom Lending-Quick Cash Loan had yet to respond as of press time.