SEC arrests 3 online lenders
The Securities and Exchange Commission (SEC) has ordered three online lending operators to cease abusive lending and collection practices.
In an order issued on April 26, the commission en banc ordered Golden Cash, Help Cash and Grace Cash to immediately cease and desist from engaging in, performing, promoting and facilitating any activity/transaction of ready until they have obtained the necessary registration and license. of the commission.
Owners, operators, promoters, representatives and agents of online lending operators have also been ordered to cease engaging in unfair debt collection practices, as defined in SEC Memorandum Circular 18, Series of 2019 (MC 18).
The commission also ordered online lending operators to stop offering and advertising their lending business via the internet or any other media, and to remove material implicating them.
The SEC issued the order after finding that Golden Cash, Help Cash and Grace Cash are not registered as companies with the commission. As such, they cannot obtain a certificate of authority to operate as a loan/finance company.
Republic Act 9474, or the “Loan Company Regulation Act of 2007” (LCRA), requires persons or entities operating as loan companies to register as corporations and obtain from the SEC the necessary authorization to operate.
“[T]The commission finds that the continued operations of Golden Cash, Help Cash and Grace Cash constitute a clear violation of the (LCRA) and should be sanctioned under the (LCRA) because it engages in or carries on the activity of loan without the required authorization from the commission,” the commission en banc held.