Global Dominion fined for abusive debt collection
The Securities and Exchange Commission (SEC) has penalized Global Dominion Financing Inc. for engaging in unfair and abusive debt collection practices. This reinforces the regulator’s push to strengthen consumer protection in the financial sector.
In an order dated Jan. 28, the SEC’s Financing and Lending Companies Department (FLCD) found the firm to have violated rules prohibiting unfair and abusive debt collection practices. These include existing regulations and the Financial Products and Services Consumer Protection Act.
Global Dominion was ordered to pay an administrative fine of P50,000 and was admonished to strictly comply with fair, lawful and consumer-protective debt collection standards.
The SEC also warned that repeat violations could lead to heavier monetary penalties or even the suspension or revocation of the company’s certificate of authority.
The case stemmed from a complaint filed by a borrower who alleged being subjected to unfair collection practices by the firm’s third-party collection agents following payment delays.
According to the regulator, the borrower was intercepted on the road to demand payment and received a series of text messages and communications that exerted pressure for the immediate settlement of partial amounts while intimating adverse consequences in case of noncooperation.
The FLCD said intercepting a borrower without a court order or other lawful authority does not qualify as a legitimate collection practice, noting that such actions tend to “intimidate, restrain or coerce.”
Meanwhile, the messages sent to the complainant were deemed pressure tactics that could deter regulatory recourse and undermine consumer protection mechanisms.
The SEC said lenders cannot avoid administrative accountability by passing on blame.
“[Global Dominion] cannot evade administrative accountability by attributing the prohibited acts to collection agents or third-party providers,” the order read.
