SEC orders 3 online lenders to stop operations
Sustaining its crackdown on illegal lenders, the Securities and Exchange Commission (SEC) has ordered three more online lending platforms to immediately stop their operations for failing to register as corporations and for not having the necessary certificate of authority to operate as a lending company.
Peso Tree, Pesoalo and Pinoy Cash Loan were also found to have employed “abusive” collection practices by imposing high interest rates, “onerous and misleading” terms and conditions, making misrepresentations as to noncollection of charges and fees, and subjecting debtors to public humiliation and ridicule to the extent of violating their right to privacy to ensure prompt and full collection of their debt.
Aside from ordering the owners, operators, representatives and other persons acting in behalf of the three companies to immediately cease and desist from their unauthorized lending activities, the SEC also asked Peso Tree, Pesoalo and Pinoy Cash Loan to stop advertising their business through the internet.
The Lending Company Regulation Act of 2007 states that a lending company must be established only as a corporation and must have an authority to operate from the SEC.
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