SEC warns public vs illegal online lenders on Google Play Store

The Securities and Exchange Commission (SEC) flagged the continued operations of multiple unregistered online lenders listed on the Google Play Store.

In a recent advisory, the regulator advised the public against taking out loans from 22 more online lending apps that operate even without the necessary permits.

The SEC said these illegal online lending platforms include PesoMate, ULend, Magaling Peso-Fast Online Loan, Cashpedia, Pera Now, Finledger, MadaPera, ZRT Loan, PesoOne, Kwago Peso, SL Cash, Peso Ease, PesoOne-Fast Loans, Sure Money: Smart Loan, VIP Funds-Finance Assistant PH, Cashflux, MeeBrar Loan, Agad Loan, MorePautang, CashTwig and Suki Peso.

The commission stressed that these apps are not authorized and permitted to offer, process or provide loans.

It said they had violated the SEC’s moratorium imposed under its memorandum circular No. 10, Series of 2021, which took effect last November 2021.

This, it noted, prohibits the launch, registration, acceptance of new users and operation of new online lending platforms.

The SEC warned that failure to comply will result in administrative sanctions, such as cease-and-desist orders, permanent closure, blacklisting, as well as filing of legal cases.

The commission said the public can check all the authorized online lending platforms on its website.

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It also urged the public to report any illegal lending activities to its iMessage Portal and official website.

While the local lending market saw growth in the past year, the number of complaints likewise ballooned.

The Presidential Anti-Organized Crime Commission even reported that the majority of the 156,000 complaints recorded by the police per month were from victims who complained of harassment after using online lending applications.

To curb this, the SEC last month issued a new memorandum circular, providing the recalibrated ceilings on interest rates and other fees charged by financing and lending firms. It imposed a cap of 6 percent per month on the nominal interest rate for loans worth a maximum of P10,000.