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Manila Bulletin devider Business devider The Stock Market devider Pautang Online, Pautang Peso fined by SEC for misleading loan terms

Pautang Online, Pautang Peso fined by SEC for misleading loan terms

Published Jul 29, 2025 02:17 pm
The Securities and Exchange Commission (SEC) continues to crack down on erring lending firms and has recently fined LHL Online Lending Inc., doing business under the names and styles of Pautang Online and Pautang Peso, for providing misleading information in its loan agreements.
SEC Chairman Francis Lim
SEC Chairman Francis Lim
In an order dated July 17, the SEC Financing and Lending Companies Department directed LHL Online Lending to pay a fine of ₱129,000 for its violation of the Truth in Lending Act (TILA), as implemented by SEC Memorandum Circular (MC) No. 7, Series of 2011.
This follows multiple complaints lodged before the Commission against the company and its online lending platforms. MC 7 provides for the implementation of the TILA to enhance loan transaction transparency.
Section 4 of the TILA states that any creditor shall furnish borrowers, prior to the consummation of the transaction, a clear statement in writing the information on the cash price of a property or service, amount to be credited, and charges due to the borrowers, among others.
An investigation by FinLend showed that loan payment terms indicated in the company’s disclosure statement to borrowers would be 150, 180 or 210 days.
In reality, however, LHL Online Lending provides its borrowers a shorter period to repay. Borrowers are then subjected to hidden surcharges and interest for failure to pay within the shorter timeframe.
“The intent of the law, which is to ensure that borrowers are well-informed about the agreements they enter into, has been undermined by [LHL Online Lending’s] deceptive practices,” the order read.
It added that, “Worse still, borrowers were misled into agreements through misleading information that made them appear to be wise choices, when in fact, they were not.”
Subsequent violation, if any, will result in the cancellation of the LHL Online Lending’s primary registration and certificate of authority to operate as a lending company, according to FinLend.

Related Tags

Securities and Exchange Commission LHL Online Lending Inc. Pautang Peso Pautang Online
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