SEC files criminal charges vs Easypeso agents, officials, shareholders
The Securities and Exchange Commission (SEC) has brought to court 173 agents of online lending app Easypeso, as well as its officers and shareholders, for what the corporate regulator described as abusive debt collection practices.
In a press statement on Friday, the SEC announced the filing of criminal charges against the employees, incorporators, officers, directors and beneficial owners of Creditable Lending Corp., the company running Easypeso.
Through an inquest proceeding on July 17, the SEC, together with the National Bureau of Investigation and the National Privacy Commission (NPC), formally lodged the criminal complaints with the Department of Justice (DOJ).
The SEC said the company and its employees had engaged in unfair debt collection practices, citing “increasing reports of harassment committed by lenders.”
The employees, officers and owners were thus charged with violating Republic Act (RA) No. 11765, or the Financial Products and Services Consumer Protection Act, and RA 10173, or the Data Privacy Act.
They were also implicated for misuse of devices and illegal access, in violation of RA 10175, or the Cybercrime Prevention Act.
Search warrants had earlier been issued by Branch 46 of the Regional Trial Court of Manila against Creditable Lending, leading to the arrest of employees at its office in Pasig City on July 15.
The interagency operation against the online lending firm was led by the NBI, NPC, Presidential Anti-Organized Crime Commission (PAOCC), Philippine National Police Anti-Cybercrime Group, PNP Criminal Investigation and Department Group and the SEC Enforcement and Investor Protection Department.
Items seized during the operation included computers, company-issued phones, preregistered SIM cards, text blasters, as well as scripts that had been allegedly used by the employees to harass borrowers during collection.
Following the raid, the SEC Financing and Lending Companies Department issued a cease and desist order against Creditable Lending and Easypeso, including all persons acting on their behalf. It directed them to immediately stop promoting and facilitating any lending activity or transaction.
Creditable Lending has been a subject of the discussions of the government’s Task Force on Online Lending Application, a dedicated group established to lead the crackdown on lending operators engaged in unfair debt collection practices.
The task force includes law enforcement agencies such as the PAOCC, DOJ, NBI and PNP.
