MANILA, Philippines – The Securities and Exchange Commission (SEC) ordered more online lending platforms to shut down due to lack of necessary licenses.
In a statement on Wednesday, January 22, the SEC said it ordered Peso Tree, Pesolalo, and Pinoy Cash Loan to stop offering loans to the public, remove promotional presentations from the internet, and delete their online applications.
The commission's Corporate Governance and Finance Department as well as Enforcement and Investor Protection Department found that these lending operators "employed abusive collection practices by imposing high interest rates, onerous and misleading terms and conditions, [and] making misrepresentations as to non-collection of charges and fees."
To make matters worse, they subjected debtors "to public humiliation and ridicule to the extent of violating their right to privacy."
The SEC earlier issued cease and desist orders against 48 online lending platforms for operating without incorporating and failing to secure a certificate of authority from the agency. (READ: SEC wants interest rate cap for payday loans)