Seven digital lending platforms ceased operations, breaching the SEC's temporary ban.

The Securities and Exchange Commission (SEC) in the Philippines has taken action against seven online lending platforms (OLPs) for operating without the necessary registration. The platforms in question are 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.

The orders, issued by the SEC's Financing and Lending Companies Department (FinLend) on August 15, 2022, direct the operators of these platforms to immediately stop any lending-related transactions. This is to safeguard the integrity of the regulatory framework governing lending companies and protect the public from potential risks.

The public is exposed to potential risks such as abusive debt collection practices, unfair interest rates, and violations of data privacy rights due to the companies' actions. Operating unregistered OLPs allows companies to circumvent the SEC's regulatory authority, putting the public at risk.

The companies have been accused of violating SEC Memorandum Circular No. 19, which requires lending firms to disclose the OLPs they operate. The second Memorandum Circular (MC) No. 10 placed a moratorium on the registration of new OLPs as of November 5, 2021. The Bangko Sentral ng Pilipinas (BSP) resumed the registration of new online lending platforms in August 2022, which had been suspended since November 2021, to improve regulation and consumer protection in the online lending industry.

The SEC did not disclose any information about the total amount of money lent out by the seven companies. The orders cover the companies' owners, operators, and agents, and the companies have been ordered to comply with the cease and desist orders or face legal consequences. The SEC's enforcement action is authorized under the Financial Products and Services Consumer Protection Act.

It is important to note that the orders do not specify any reasons for the cease and desist orders at this time. The SEC's action is part of a larger crackdown on unregistered online lending platforms in the Philippines.

The SEC encourages the public to be vigilant and cautious when dealing with online lending platforms. Always ensure that the platform is registered and complies with the necessary regulations to protect yourself from potential risks.

Seven digital lending platforms ceased operations, breaching the SEC's temporary ban.