Home / Business and Economy / SEC Cracks Down on Rogue Loan Apps
SEC Cracks Down on Rogue Loan Apps
2 Jan
Summary
- The SEC flagged numerous unregistered online lending apps.
- These apps operate without necessary permits, violating a moratorium.
- Victims report widespread harassment from illegal lenders.
The Securities and Exchange Commission (SEC) in the Philippines has identified and flagged multiple unregistered online lending applications available on the Google Play Store. These apps are accused of operating without the necessary permits, directly violating a moratorium imposed in November 2021, which prohibits the launch and operation of new online lending platforms. This action comes amid a significant rise in complaints related to online lending.
The regulator specifically named apps such as PesoMate, ULend, and Sure Money: Smart Loan, among others, as unauthorized. The SEC stressed that these platforms are prohibited from offering, processing, or providing loans. Failure to comply with these directives will lead to severe administrative sanctions, including cease-and-desist orders, permanent closure, and legal cases against the operators.
To combat predatory lending practices, the SEC recently recalibrated interest rate ceilings, capping nominal interest rates at 6 percent per month for loans up to P10,000. The Presidential Anti-Organized Crime Commission reported that a substantial portion of monthly police complaints stem from harassment by online lending app users. The public can report illegal activities and verify authorized platforms on the SEC's official website.
