SEC cancels certification authority of ‘unfair’ loan company

The Securities and Exchange Commission announced Monday that it has revoked the Certificate of Authority (CA) of loan company Super Cash Lending Corp. for its unfair debt collection practices.

In an order, the SEC’s corporate governance and finance department found that the company, through its online lending platforms Super Cash, Cash Porter and Loan Bee, threatened borrowers with shame on social media. by posting their loan and personal details, as well as for estafa and theft costs.

It found Super Cash responsible for nine violations of its circular memorandum on the prohibition of unfair debt collection practices of finance and loan companies.

Super Cash also threatened borrowers with being blacklisted by the National Bureau of Investigation and used foul and abusive language to collect debts, the SEC said.

“Worse, in one of the screenshots submitted by one of the complainants, messages showing threats to inflict serious physical harm on the complainant’s person could be seen. These unfair collection practices are too heinous to be ignored, ”he said.

A third violation of the SEC circular merits the imposition of a fine, suspension or removal of the company’s board of directors, depending on the facts, circumstances and seriousness of the case.

“The revocation of the respondent’s COA is not simply appropriate, but rather necessitated by the seriousness and number of his offenses,” the agency said.

The SEC Circular Memorandum on Unfair Collection Practices came into effect on September 8, 2019, as part of the agency’s response to several complaints of unreasonable, abusive and unfair practices used by loan and finance companies. in order to collect the debts of the borrowers.

“We respect the right of loan and finance companies to formulate and adopt certain strategies to effectively collect debts and ensure their profitability,” said SEC Commissioner Kelvin Lester K. Lee.

“However, harassment and other abusive or predatory practices will never be acceptable and tolerated. As we pursue errant loan and finance companies, we also advise the public to be careful and attentive in their dealings with entities posing as such, ”he said.

Earlier this year, the SEC dismissed the board of directors of FCash Global Lending Inc., which had one of the highest number of collection harassment complaints since 2017. It also ordered four online loan applications, namely CashAB, CashOcean, KwikPeso and Little Cash, to cease its activities for lack of authorization to operate as a loan or financing company outside of abusive collection practices.

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