The Securities and Change Fee continues its crackdown on errant lending corporations. INQUIRER.web FILE PHOTO
MANILA, Philippines – The Securities and Change Fee (SEC) has ordered two lending firms to cease working as a result of alleged “abusive assortment practices,” saying that it needed to defend traders from fraud and hurt.
In separate stop and desist orders dated June 24, the SEC Monetary and Lending Firms Division (FinLend) stated it had obtained a number of complaints about “unfair debt assortment practices” of Bravo Zulo Romeo Lending Corp. (BZR Lending) and Magic Peso.
READ: SEC crackdown nets 104 casual lenders
BZR Lending owns Magic Peso, which was discovered to have been working regardless of the SEC’s moratorium on new on-line lending platforms (OLPs) imposed in 2021.
Below the fee’s Memorandum Round No. 10, Sequence of 2021, solely OLPs registered as of Nov. 2, 2021 have been allowed to proceed working after the SEC obtained “quite a few complaints” in regards to the supposed violations of firms on this trade.
Magic Peso was not listed among the many OLPs allowed to function.
The SEC FinLend identified that in working an unregistered OLP, BZR Lending positioned debtors “liable to experiencing abusive assortment practices, excessive rates of interest and violation of their information privateness rights.”
“On account of [BZR Lending’s] persevering with operation of Magic Peso, the fee holds that the issuance of a [cease and desist order] is warranted within the instantaneous case, not solely to penalize the respondent but in addition to stop fraud, damage or hurt to the general public and monetary shoppers who’re on the respondent’s mercy,” the company watchdog stated in its order.
Magic Peso and its house owners, operators, promoters, representatives and brokers have been slapped with the identical phrases.
In Could, the SEC additionally issued a stop and desist order towards Hupan Lending Expertise Inc., one other operator of Magic Peso.
The fee has just lately been intensifying its crackdown on fraudulent and delinquent lending corporations to guard traders.
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It has to date canceled the licenses of 401 lending firms for failing to submit documentary necessities. INQ
