SEC orders 6 lending firms to stop operations

The Securities and Exchange Commission (SEC) has ordered six financing and lending firms to stop operations for failure to comply with requirements of the Financial Consumer Products and Services Consumer Protection Act.

In a statement, the SEC said it has issued cease and desist orders (CDO) pursuant to the Financial Consumer Products and Services Consumer Protection Act, against 9F Lending Philippines Incorporated; Elending Lending Inc.; Hovono Lending Corporation; Makati Loan, Inc.; Second Pay Financing Inc.; and Tekwang Lending Corp.

According to the SEC, these financing and lending companies failed to comply with its Memorandum Circulars and Orders:

   1. MC No. 03, Series of 2022, which requires the submission of the Impact Evaluation Report on or before January 15 of each year beginning 2023;
   2. MC No. 28, Series of 2022, which requires the submission of an official e-mail and contact number;
   3. MC No. 19, Series of 2019, which requires the disclosure of advertisements and reporting of Online Lending Platforms;
   4. Order dated 07 February 2024, which requires the submission of complaints handling mechanism;
   5. Order dated 06 July 2023, which requires registration with the Credit Information Corporation; and
   6. Order dated 08 June 2023, which requires the submission of the list of Third-Party Service Providers.

The SEC said these financing and lending companies, including their owners, operators, promoters, representatives, and agents are directed to immediately cease and desist from engaging in, carrying out, promoting, which includes offering and advertising their lending business through the internet and/or any other media, and facilitating any lending activity or transaction.