SEC warns public against Sana Credit

THE Securities and Exchange Commission (SEC) has issued a cease-and-desist (CDO) order against Sana Credit over its operation of an online lending platform (OLP).

The commission’s Financing and Lending Companies Department issued the order on July 28, directing Sana Credit to halt its lending activities due to the absence of required registration and approval.

Sana Credit was reported to have a virtual presence on the App Store, Play Store, LoanPHI, and Similarweb.

According to the SEC, Sana Credit has violated SEC Memorandum Circular (MC) No. 19 issued in 2019 that requires financing and lending companies to fully disclose and report the OLPs they operate, as well as MC No. 10 issued in 2021 that imposed a moratorium on new OLPs.

“By operating an unregistered and undisclosed online lending platform, [Sana Credit] effectively circumvents the commission’s regulatory and supervisory authority. Consequently, the general public, particularly borrowers, are exposed to potential risks, including abusive and unfair debt collection practices, unjust interest rates, [and] violation of data privacy rights,” the order read.

“In light of [Sana Credit’s] continued unauthorized operation of its OLP, the commission finds it necessary to issue this [CDO] in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies,” it added.

The SEC has the power to conduct enforcement actions against financial service providers as provided under Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act. — Revin Mikhael D. Ochave