SEC issues CDO vs 5 unlicensed lending firms
THE Securities and Exchange Commission has ordered five illegal online lending operators to stop conducting lending activities without the proper license.
In an order issued February 3, the sec directed taco loan,v cash, 365 Cash, Swipecash and Bootcash to immediately cease and desist their lending operations until they have incorporated and secured from the SEC their respective certificates of authority to operate as a lending or financing company.
The companies, their agents, representatives and promoters, as well as the owners and operators of their hosting sites, were further enjoined to cease from offering and advertising their lending business through the internet or any other media, and to remove all of these materials, the SEC said.
The agency issued the order after finding that none of the groups is registered as a corporation, or has secured CAS from the SEC.
Republic Act 9474, or the Lending Company Regulation Act of 2007, requires persons or entities operating as lending companies to register as corporations and to secure from the SEC the necessary authority to operate.
“[T]he Commission finds and so holds that the issuance of a CDO is warranted in the instant case not only to stop the illegal act, but also to prevent the continued fraud on the public who are led by the Online Lending Operators to the belief that they are a legitimate business,” the SEC said in a decision signed during their en banc meeting.
“The Commission is dutybound to strictly implement the provisions of the [LCRA], ensure that public interest is at all times upheld, and that the public is protected from persons who carry out unauthorized or illegal lending activities.”
In addition to their illegal operations, the SEC has also received complaints about the unfair debt collection practices of the online lending operators.
This marks the second cease and desist order against illegal lending operators that the SEC has issued for the year. The agency earlier directed Goodpocket and Easymoney Online Lending to stop all lending activities until they have secured the necessary licenses from the SEC.