SEC cracks down on erring lending firms

DAVAO CITY - The Securities and Exchange Commission (SEC) has cancelled the licenses of at least 36 financing or lending companies and revoked some the certificate of registration of over 2,000 firms for various violations of rules and regulations.

It also launched an aggressive campaign against unauthorized and abusive online lending activities and said many erring companies were shut down. The crackdown started after SEC received numerous complaints against online lending applications (OLAs) for various violations of the Lending Company Regulation Act and for abusive debt collection practices violating the “Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.”

The SEC also formed a task force to handle complaints involving online lending operators and to take the appropriate measures to stop these erring firms from engaging in abusive practices and activities. The task force closely coordinates with other law enforcement agencies such as the Police Anti-Cybercrime Group and the National Bureau of Investigation to crack down on illegal online lending applications.

Just recently, combined forces of the SEC Enforcement and Investor Protection Department and the Police Anti-Cybercrime Group swooped down at the office of the Cashtrees Lending Corporation in Pasig City after the Manila Regional Trial Court Branch 46 issued search warrants against the firm for “misuse of device” penalized under the Cybercrime Prevention Act of 2012, in operating unregistered online lending applications in of the LCRA.

The onsite digital forensic examination on the seized devices showed that the employees of Cashtrees Lending operated online lending applications such as Happylend, Rush Loan, Easy Money, Good Pocket, Dummy Loan, Lucky Star, Swipe Cash, 365 Cash, Home Peso, Mega Loan, Treecash and Goldpeso.

Cashtrees Lending is registered as a corporation and holds a certificate of authority to operate as a lending company. It operates registered online lending platforms such as Happylend, Creditcash and Cashmore. However, the majority of the online lending applications operated by Cashtrees Lending were unregistered. These include Goodpocket, Easymoney, 365 Cash and Rushloan, which have been the subject of cease and desist orders issued by the SEC.

 

At least 46 employees, including the manager of Cashtrees Lending, were also arrested for violating the Cybercrime Prevention Act of 2012 and the LCRA. (Malou Cablinda)