SEC orders Sana Credit to stop operations
The Securities and Exchange Commission (SEC) has ordered Sana Credit to immediately stop operations. This is part of the agency’s intensified crackdown on unregistered online lending platforms (OLPs).
The SEC financing and lending companies department issued a cease and desist order against Sana Credit. The order dated July 29 covers its owners, operators and all other people connected with the company.
According to the agency, Sana Credit was operating an unregistered OLP that was available through mobile application stores.
Under SEC Memorandum Circular No. 19, Series of 2019, all financing and lending companies are required to disclose the OLPs they operate. The SEC also found, however, that Sana Credit violated the commission’s moratorium on new OLPs that was imposed in 2021.
“[Sana Credit] effectively circumvents the commission’s regulatory and supervisory authority,” the SEC said in its order.
“Consequently, the general public, particularly borrowers, are exposed to potential risks, including abusive and unfair debt collection practices, unjust rates, violation of data privacy rights,” it added.
Sana Credit is the latest company on the radar of the SEC, which has been cracking down on unauthorized operations of OLPs.
Ditto with Hinance
The regulator also recently issued a cease and desist order against Hinance Lending Investors Corp., also for running an unregistered OLP. It operates HotCash, VI Peso and KindCash.
The regulator found that Hinance owned and operated Magic Peso. This is a company previously found to have been operating despite the SEC’s standing order for a moratorium.
The July 15 order directed the company and its owners and operators to immediately stop operations to “prevent fraud, injury or harm to the public and financial consumers who are at [Hinance’s] mercy.”
SEC Memorandum Circular No. 10, Series of 2021, states that only OLPs registered as of Nov. 2, 2021 were allowed to continue operating. This was after the agency received many complaints about the supposed violations of online lending firms.
