The Securities and Exchange Commission (SEC) is proposing mandatory accreditation for third-party collection agencies (TPCAs) that collect debts for financing and lending companies.
The draft circular, issued for public comment on 30 September, would bring TPCAs under the SEC’s direct supervision and set uniform conduct standards to protect borrowers from abusive collection.
Under the draft, only SEC-accredited TPCAs and the in-house collectors of financing and lending companies could collect debts.
Accreditation would last three years, with renewal applications due at least 30 days before expiry, and accredited agencies would appear in a registry on the SEC’s online database.
Only SEC-registered stock corporations that do debt collection exclusively would qualify, and existing TPCAs would have one year after the rules take effect to get accredited, according to the Inquirer.
Agencies that use unfair practices, including unlawful house visits and system-generated or automated messages, could face fines of PHP 60,000 to PHP 200,000, and delisting on a fourth offence.
The SEC could also blacklist the directors and officers of delisted agencies.
Lenders that fraudulently use non-accredited or undisclosed TPCAs could face fines of up to PHP 2 million, and a fourth violation would lead to suspension or revocation of their certificate of authority.
The proposal responds to a steady stream of borrower complaints.
SEC Commissioner Rogelio Quevedo told a Senate hearing that the commission received 3,315 complaints against unregistered lenders over debt collector harassment between January and 15 September 2025.
Earlier actions include the revocation of Convenience Cash Lending Corp.’s licence for repeated unfair collection practices and an April 2026 proposal for a preventive framework for online lending platforms.
The public can submit comments through the SEC’s online form until 15 October.
Featured image: Edited by Fintech News Philippines based on an image by the Philippines Securities and Exchange Commission via Facebook.
