The Securities and Exchange Commission (SEC) in the Philippines has issued cease and desist orders (CDO) against Bravo Zulo Romeo Lending Corporation (BZR Lending) and the online lending platform (OLP) Magic Peso.

The SEC directed both entities to immediately halt all lending activities due to unauthorised operations and alleged unfair debt collection practices.

The SEC Financing and Lending Companies Department (FinLend) promulgated the order against BZR Lending on June 24, directing the company, its owners, and representatives to cease all lending transactions.

This action followed complaints from borrowers who reported abusive collection practices from Magic Peso. Investigations by FinLend confirmed that Bravo Zulo Romeo Lending Corporation also owns and operates Magic Peso.

While BZR Lending is registered with the SEC as a lending company, it failed to file a disclosure pertaining to any OLP. The SEC order states this constitutes a violation of SEC Memorandum Circular No. 19, Series of 2019, which mandates full disclosure and reporting requirements for financing and lending companies utilising OLPs.

Separately, the SEC’s order against Magic Peso, also dated June 24, specifically cited its illegal operation as an OLP and engagement in unfair debt collection practices.

The Commission’s official records also do not include Magic Peso among the OLPs. Its continued operation also violates SEC MC No. 10, Series of 2021, which imposed a moratorium on new OLPs from November 2, 2021.

The SEC underscored the necessity of the CDOs to protect the public and financial consumers. These measures aim to safeguard individuals from potential harm associated with unregistered and non-compliant lending activities.

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