AdChoiceTV News — The Securities and Exchange Commission (SEC), the corporate regulator, has revoked the license of a lending company for unfair debt collection practices, including threats to shame borrowers on social media.
In an order dated Nov. 11, the SEC Corporate Governance and Finance Department (CGFD) revoked the certificate of authority (CA) of Super Cash Lending Corp.
The SEC held Super Cash liable for nine 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.null
Threats to borrowers and shaming them on social media were among the violations allegedly committed by Super Cash, the SEC said.
SEC Commissioner Kelvin Lester Lee said while the SEC respects the right of financing entities to collect debt, there should be no harassment involved.
“Harassment and other abusive or predatory practices will never be acceptable and tolerated. As we pursue erring lending and financing companies, we also advise the public to be cautious and mindful of their transactions with entities representing themselves as such,” Lee said.
In particular, the SEC said Super Cash, through its online lending platforms Super Cash, Cash Porter, and Loan Bee, threatened borrowers with shaming on social media through the publication of their loan and personal details, as well as with estafa and theft charges.
Furthermore, Super Cash also told its borrowers they would be blacklisted with the National Bureau of Investigation, the SEC’s CGFD also said.null
“In one of the screen captures submitted by one of the complainants, messages showed threats of inflicting grave physical harm upon the person. These unfair collection practices are all too obnoxious to ignore,” the SEC said.
A third violation of SEC MC 18 merits the imposition of either a monetary fine, suspension, or revocation of the company’s CA, depending on the facts, circumstances, and gravity of the case.
“(T)he revocation of respondent’s CA is not merely appropriate, but rather necessitated by the gravity and number of its offenses,” the CGFD said.
The SEC issued SEC MC 18 took effect on Sept. 8, 2019 in response to several complaints for unreasonable, abusive, and unfair practices of lending companies.
Earlier this year, the SEC revoked the certificate of authority of FCash Global Lending, Inc. for committing unfair debt collection practices. The company, which previously operated through online lending platforms Fcash, Fast Cash and Fast Cash Loan, has had one of the most number of complaints for collection harassment since 2017, according to the SEC’s CGFD.
Furthermore, the SEC ordered four online lending applications, namely CashAB, CashOcean, KwikPeso, and Little Cash, to cease operations for lack of authority to operate as a lending or financing company. The online lending operators were also found to have employed abusive collection practices. — via Irvin Chua / AdChoiceTV News