SEC cancels Digido group’s license
An online lending platform found to have supposedly been operating “branches” without the proper documents had its corporate papers canceled, five years after it started operations.
In an order dated May 9, the Securities and Exchange Commission (SEC) Financing and Lending Companies Department revoked Digido Finance Corp.’s certificates of incorporation and authority to operate as a financing company.
Also cancelled was the company’s authority to operate its recorded online lending platforms, UnaPay, UnaCash and Digido Philippines Online Loan.
These revocations essentially mean that Digido, which was incorporated in March 2020, can no longer continue operations.
According to the SEC, Digido had allegedly opened and operated four branches in Cavite province without securing a certificate of authority from the regulator.
Under the Implementing Rules and Regulations of the Financing Company Act of 1998, a financing company needs to apply for a certificate of authority before operating a branch, agency, extension office or unit.
Digido argued, however, that it had only established exhibit booths in General Trias, Dasmariñas, Bacoor and Kawit. It noted that these were not considered branches, especially since these were only “temporarily set up for one month.”
Digido likewise explained it did not intend to perform loan transactions, disbursements, payments or any related activities in its booths, which it pointed out were “too small to operate and be considered a branch” at 4 square meters each.
However, the SEC countered that Digido allegedly offered the public via its social media posts up to P10,000 loans if they applied at the exhibit booths.
“We note that the respondent (Digido) intended to operate the exhibit booths as its own branch, considering that its own Facebook posts exhibited its promotion to the public that they may avail of cash loans in said locations,” the SEC said in its order.
The corporate watchdog also argued that “any form of office, even a mere table placed outside of the principal office of an FC (financial company)” that was meant to be used to solicit loan applications, need a certification from the SEC.
As of this writing, Digido’s website is still accessible.
