THE Securities and Exchange Commission (SEC) has taken action against two online lending firms for alleged violations of regulatory requirements, including noncompliance with disclosure rules and concerns raised by borrowers.
In an order dated May 13, the SEC Financing and Lending Companies and Valuation Department (FinLenD) issued a cease-and-desist order against Hupan Lending Technology, Inc. for operating an unrecorded online lending platform (OLP) called Magic Peso.
The SEC-FinLenD directed the company to halt operations of Magic Peso and its declared OLPs — Cashme, Sukiloan, Pesopoly, and Loan Tayo.
The regulator said the directive followed complaints from borrowers who claimed to have experienced abusive collection practices linked to Magic Peso.
According to the SEC, the platform’s continued operations violated a moratorium on new OLPs under SEC Memorandum Circular No. 10, Series of 2021.
“The SEC views the issuance of the cease-and-desist order as necessary to prevent fraud, injury, or harm to the public and financial consumers who are using Magic Peso,” it said.
In a separate order dated May 13, the SEC-FinLenD revoked the lending license of Hi-Fin Lending, Inc. for its failure to disclose WeWill Tech Corp. as one of its third-party service providers (TPSPs).
The SEC also canceled Hi-Fin Lending’s certificate of authority to operate as a lending company, along with its primary registration.
Hi-Fin Lending operates the online lending platforms Peso Wallet and Credit Cash.
On Jan. 31, the National Bureau of Investigation and the Presidential Anti-Organized Crime Commission conducted a raid on the premises of WeWill Tech as part of an investigation into complaints involving online lending platforms.
Authorities said the company served as a collection agent for Hi-Fin Lending.
The SEC said Hi-Fin Lending failed to meet the requirement for financing and lending companies to submit a list of TPSPs, as required under Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act. — Revin Mikhael D. Ochave