SEC-Davao advises caution about online lending platforms; says many are unregistered
DAVAO CITY (MindaNews / 22 November) – The Securities and Exchange Commission (SEC)-Davao warned the public to be cautious about online lending platforms, applications, and websites, following complaints from individuals who reported harassment after availing of loan services.
During the “Business Forum at NCCC” on Friday, Atty. Katrina Ponco-Estares, SEC-Davao director, said that her office had received 85 complaints as of November 21, most of which involved harassment, including death threats, as well as high interest rates.
She warned that several lending platforms, many of which were advertised on social media, were not registered with the agency.
She said the SEC requires lending and financing businesses, including those operating online lending applications, to secure registrations and secondary licenses from the Commission before they can lawfully grant loans to borrowers.
“Some borrowers even come to the office crying because of the harassment they receive through text messages, emails, or whatever means of communication the lenders use,” she said.
The official said that several individuals are drawn to these online lending services because the “process is very fast,” with minimal requirements compared to traditional lending companies, as “borrowers only need to provide their name and the loan amount they want.”
The repercussion, she added, is that the loan apps collect the borrowers’ personal information, along with the contact details of people in their contact list, who also end up being harassed.
“Out of the 85 complaints received, many borrowers do not pursue formal cases. They simply air out their concerns, but of course, the SEC does not ignore complaints. We still check them,” she said.
She said the Commission issues advisories to warn borrowers against using lending apps available on the Google Play Store and Apple App Store.
“With the illegal ones, you won’t find any actual office or person to hold accountable — you don’t even know who you are dealing with. The advisories are meant to remind the public that these entities are not registered with the SEC. If a particular entity is unregistered, the reminder is simply not to transact with that online lending platform,” she said.
The official urged individuals to verify, through the SEC website, whether the lending platforms are registered.
In an advisory issued last October 23, the Commission released a list of online lending platforms, applications, and websites not authorized to offer, process, or lend money to the public in accordance with SEC Memorandum Circular No. 10, series of 2021, which implements a moratorium on new online lending platforms effective 2 November 2021.
The list includes PeraGo: Secure Loans, LoanTayo – Flexible Loans, SeaCash – Safe and Fast Loan, ZRT CREDIT: Loan PH, Bingo Peso: Philippine CashLoan, Peso Maya – Fast Online Loan, Cash Muna, and GZ Lend – Online Cash Loan App on the Google Play Store.
The Commission also warned the public against availing of loan services from Valor Credit – Loan App Quickly 18+, Dolo Loan, Maxi Lending – Loan & Mabilis Cash, Sky Loan – Quick Lending App, VIP Loan – Quick Lending App, AssetCred – Loan App Philippines, PeraOne – Online Mabilis Cash, and Easy Loan – Loan App Philippines on Apple App Store.
The advisory also included web-based lending platforms such as Andali Cash, Cashcano, and Metacash. (Antonio L. Colina IV/MindaNews)
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