SEC orders 12 more lending apps to stop operations

Published October 14, 2019, 12:00 AM

by manilabulletin_admin

By James Loyola

The Securities and Exchange Com­mission (SEC) has issued a cease and desist order against another batch of 12 online lending operators for their failure to secure the necessary licenses.

The Commission En Banc ordered A&V Lending Mobile, A&V Lending Investor, A.V. Lending Corpo­ration, Cashaku, Cashaso, CashEnergy, Happy Loan, Peso Pagasa, Vito Lend­ing Corp., Phily Kredit, Rainbow-Cash and Rainbowcash.Ph Lending stop from further engaging in lending activities.

The SEC order covers the owners and operators of the online lending applications, their agents, representa­tives and promoters, the owners of their hosting sites and all persons acting for and on their behalf.

The Commission also ordered the online lending operators to cease from offering and advertising their lending business through the Internet and to delete or remove promotional presenta­tions and offerings of such lending busi­ness from the Internet including the lending applications that they operate.

Furthermore, the SEC directed all persons and entities to stop carrying out, abetting or promoting lending business or similar activities until they have incorporated and have secured the requisite certificate of authority to oper­ate as lending or financing companies.

Based on the findings of the SEC Corporate Governance and Finance Department (CGFD), the online lend­ing applications and their operators are not registered as a corporation or partnership and have not been issued certificates of authority to operate as lending or financing companies.

In the case of A&V Lending Mo­bile, the CGFD found no record of registration of its purported operator, A&V Lending Investor. A certain A.V. Lending Corporation turned up in the SEC database, but its registration had already been revoked.

Meanwhile, Peso Pagasa and Rain­bow-Cash are purportedly operated by Vito Lending Corp. and Rainbowcash.Ph Lending Corp., respectively. How­ever, no such corporations are recorded in the Commission’s database.

Investigations by the SEC Enforce­ment and Investor Protection Depart­ment (EIPD) confirmed the existence and operation of the online lending ap­plications, which have been advertising on social media.

“Considering that the Online Lending Operators are not incorporated entities or have no Certificate of Authority to Operate as Lending Companies or Fi­nancing Companies, the lending activities and transaction are illegal and have to be stopped immediately by this Commis­sion,” the cease and desist order read.