The Securities and Exchange Commission (SEC) has revoked the corporate registration and secondary licence of Convenience Cash Lending Corp. for engaging in unfair debt collection practices. The company operated under the business names Zada Cash and Bloom Cash.

In an order dated July 17, the SEC’s Financing and Lending Companies Department (FinLend) cancelled the company’s certificate of incorporation. The department also revoked its certificate of authority to operate as a lending company.

The company was found to have violated SEC Memorandum Circular No. 18, Series of 2019, four times. This regulation prohibits companies from engaging in unfair collection practices.

The action followed the SEC’s receipt of over 600 complaints about the company’s methods. The company allegedly sent threatening messages to borrowers and their contacts. In another instance, they sent funeral services to a borrower’s address.

In its order, FinLend stated that it found the “complainant-borrowers to have supported their claims with substantial evidence”.

The order also reiterated that lending companies are mandated to “observe good faith, reasonable conduct and refrain from engaging in unscrupulous and untoward acts” when collecting debts.

This revocation follows a separate cease and desist order issued against Convenience Cash on May 27. That order was for the company’s failure to register with the Credit Information Corporation as required by the Financial Products and Services Consumer Protection Act.

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