The Securities and Exchange Commission (SEC) has issued cease and desist orders against seven companies for operating online lending platforms (OLPs) without the necessary registration.

In separate orders dated August 15, the SEC’s Financing and Lending Companies Department (FinLend) directed the operators of 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 to immediately stop any lending-related transactions.

The orders cover the companies’ owners, operators, and agents.

According to the SEC, the companies’ operation of unrecorded OLPs violates two key regulations. The first is SEC Memorandum Circular (MC) No. 19, which requires lending firms to disclose the OLPs they operate.

The second is MC No. 10, which placed a moratorium on the registration of new OLPs as of November 5, 2021. The enforcement action is also authorised under the Financial Products and Services Consumer Protection Act.

FinLend noted that by operating unregistered and undisclosed platforms, the companies circumvent the SEC’s regulatory authority. This exposes the public to potential risks, including abusive debt collection practices, unfair interest rates, and violations of data privacy rights.

The orders stated that the cease and desist issuances were necessary in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies.

Featured image by sodawhiskey via Freepik.