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Manila Bulletin devider Business devider Banking & Finance devider SEC cracks down on online lending platforms for abusive tactics, non-compliance

SEC cracks down on online lending platforms for abusive tactics, non-compliance

Published May 26, 2025 11:18 am  |  Updated May 26, 2025 01:25 pm
The Securities and Exchange Commission (SEC) has issued twin orders to shut down Online Lending Platforms (OLPs) Magic Peso as well as Peso Wallet and Credit Cash of Hupan Lending Technology Inc. and Hi-Fin Lending Inc., respectively.

In an order dated May 13, the SEC Financing and Lending Companies Department (FinLenD) directed Hupan Lending to cease and desist from operating Magic Peso and its declared OLPs, Cashme, Sukiloan, Pesopoly, and Loan Tayo.

The SEC said it acted on complaints received from borrowers who claimed to experience abusive collection practices from Magic Peso and found that it is an unrecorded and unregistered OLA.

It noted that, “as a consequence of operating an unrecorded OLA, Hupan Lending has deemed to have placed each borrower and customer of Magic Peso outside the protection afforded by the Financial Products and Consumer Protection Act and its Implementing Rules and Regulations.”

“The continuous operation of Magic Peso violates the ongoing moratorium on new OLPs, as provided under SEC Memorandum Circular No. 10, Series of 2021. The SEC views the issuance of CDO as necessary to prevent fraud, injury, or harm to the public and financial consumers who are using Magic Peso,” the Commission said.

Meanwhile, the SEC has cancelled the lending license of Hi-Fin Lending, which operates Peso Wallet and Credit Cash, for its failure to disclose WeWill Tech Corporation as one of its third-party service providers (TPSPs).

In an order dated May 13, the SEC FinLenD found that Hi-Fin Lending failed to comply with the order dated June 8, 2023, which requires all financing and lending companies to submit a list of their TPSPs, as required under the Financial Products and Services Consumer Protection Act.

On January 31, 2025, the National Bureau of Investigation and the Presidential Anti-Organized Crime Commission conducted a raid on the premises of WeWill Tech Corp. for its alleged involvement in the harassment of customers of Online Lending Platforms.

During the raid, it was discovered that WeWill also serves as a collection agent of HLI.

After asking the Hi-Fin Lending to explain why it failed to disclose We Will as its TPSP, the firm said We Will became its TPSP only after it submitted its list of TPSPs to the SEC. However, the SEC said it is Hi-Fin’s responsibility to update the list with the SEC.

Accordingly, FinLenD revoked Hi-Fin Lending Inc.’s certificate of authority to operate as a lending company and its primary registration.

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