The Securities and Exchange Commission (SEC) has penalized Global Dominion Financing Inc. for employing unfair and abusive debt collection practices through third-party agents amid tightening of oversight on the nation’s lending sector.

In a formal order, the SEC’s Financing and Lending Companies Department found that Global Dominion violated multiple provisions of Memorandum Circular No. 18 and the implementing rules of the Financial Products and Services Consumer Protection Act.

The regulator imposed an administrative fine of ₱50,000 on the company, accompanied by a stern admonishment to adhere to consumer-protective debt collection standards.

The SEC warned that any repetition of these offenses would result in more severe consequences, including higher monetary penalties or the potential suspension and revocation of the firm’s certificate of authority.

The enforcement action originated from a borrower's complaint that the firm’s collection agents used aggressive tactics after payment delays. The complainant alleged that agents intercepted him on a public road to demand payment and bombarded him with communications that exerted undue pressure for immediate partial settlements. These messages reportedly hinted at adverse consequences if the borrower failed to comply.

The commission’s findings highlighted that intercepting a borrower on the road without a court order or lawful authority is not a legitimate collection practice. The regulator noted that such actions are designed to intimidate, restrain, or coerce consumers. Furthermore, the SEC determined that the text messages sent to the borrower were intended to deter the individual from seeking regulatory recourse, effectively undermining established consumer protection mechanisms.

Global Dominion sought to distance itself from the conduct by attributing the prohibited acts to its third-party providers. However, the SEC rejected this defense, stating that a financing company cannot evade administrative accountability by blaming its agents. The order emphasized that under the Financial Products and Services Consumer Protection Act framework, regulated entities bear solidary responsibility for the actions of their accredited service providers.

Current regulations under MC 18 and the consumer protection law specifically prohibit the use or threat of violence, profane language, and the unauthorized contacting of persons on a borrower's contact list who are not designated as guarantors or co-makers. This ruling reinforces the mandate that financial institutions must maintain rigorous oversight of their external partners to ensure all recovery efforts remain within legal boundaries.