SEC shuts down FCash Global Lending

The Securities and Exchange Commission (SEC) has stopped FCash Global Lending, Inc. from operating as a lending company due to its unfair debt collection practices.

In an order, the SEC Corporate Governance and Finance Department (CGFD) canceled the firm’s certificate of authority (CA) after it found FCash liable for multiple violations of SEC Memorandum Circular No. 18, Series of 2019 (SEC MC 18), which provides for the Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.

The company, which operates online lending platforms Fast Cash and Fast Cash Loan, has made multiple attempts to collect loan payments by contacting or threatening persons other than those that the borrower has identified as guarantors or co-makers, according to the CGFD.

FCash has likewise sent messages threatening borrowers with charges for estafa, complaints before the National Bureau of Investigation, and service of writ of garnishment or writ of attachment.

Furthermore, FCash threatened to report borrowers to their respective employers and used abusive words when talking to them over the phone.

The CGFD also noted how FCash took advantage of borrowers’ lack of awareness of legal terminologies to compel them to pay their loans.

The Commission initially imposed a fine of ₱25,000 against FCash for its first violation of SEC MC 18 on September 25, 2019 and another fine amounting to ₱50,000 for its second violation on September 26, 2019.

On December 12, 2019, the CGFD formally charged FCash for its third violation of SEC MC 18.

FCash contended that it should not be charged with violating SEC MC 18 based on complaints involving loan transactions consummated prior to the effectivity of the circular.