The Securities and Exchange Commission (SEC) has cancelled the financing license of Digido Finance Corporation for opening and operating four branches without first getting the necessary certificate of authority from the Commission.

Digido, which operates online lending platforms (OLPs) UnaPay and UnaCash, was found to have violated Section 6(A) of the Implementing Rules and Regulations of the Financing Company Act of 1998 which prohibits financing company from establishing or operating a branch, agency, extension office, or unit, without a prior Certificate Authority from the Commission.

Thus, in an order dated May 9, the SEC Financing and Lending Companies Department (FinLenD) revoked Digido Finance’s certificate of authority to operate as a financing company and its primary registration.

The SEC had earlier issued show cause letters to the company for operating branches in Bacoor, Kawit, Dasmariñas, and General Trias, all in the province of Cavite, without first securing a certificate of authority.

Digido had claimed that the four were merely exhibit booths and not branches because they were temporarily set up for just one month and were too small to operate or be considered as a branch.

However, the SEC noted that these booths were not solely for marketing purposes, as the company’s Facebook posts indicated that it was offering loans that could be processed within 10 minutes from these booths.

The SEC said, “We note that the Respondent intended to operate the Exhibit Booths as its own branch, considering that its own Facebook posts exhibited its promotion to the public that they may avail of cash loans in said locations.

“As such, the Respondent cannot escape any administrative liability by claiming that these booths are not permanent and are too small to be considered a branch.

“The fact that they advertised that the public can avail of their services by visiting these booths supports FinLenD's previous findings that these booths require a prior valid CA from the Commission.”