24.8 C
Cagayan de Oro
Sunday, May 26, 2024
spot_img
HomeAdvertisementsSEC cancels SunCash Lending’s license, corporate registration

SEC cancels SunCash Lending’s license, corporate registration

The Securities and Exchange Commission (SEC) has revoked the Certificate of Incorporation and Certificate of Authority (CA) of SunCash Lending Investors Corp. to operate as a lending company for employing unfair debt collection practices and failing to properly disclose its online lending platforms (OLPs).

In an order dated February 6, the Financing and Lending Companies Division (FLCD) of the SEC Corporate Governance and Finance Department (CGFD) found that SunCash Lending has committed several violations of SEC Memorandum Circular No. 18, Series of 2019 (SEC MC 18), which provides the Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.

The FLCD found SunCash Lending to have threatened borrowers with shaming on social media by publishing their names as scammers and warning the people in their contact lists that they are scammers, among others.

SEC MC 18 prohibits the use of threats, insults, obscenities, profane language, and any false representations or deceptive means to force any individual to pay their debts. It also prohibits the public disclosure of a borrower’s personal information and contacting people in the borrower’s contact list.

SunCash Lending was also found to have violated SEC Memorandum Circular No. 19, Series of 2019 (SEC MC 19), which provides the Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of OLPs.

Further, SunCash Lending was found to have committed several violations for its failure to pay its Annual Fees within the prescribed period, non-filing of its interim financial statements for the first semester of 2020 and the second semester of the years 2019 and 2020, as well as the belated filing of its 2019 audited financial statements.

“The [CGFD] holds that the number, nature, and gravity of [SunCash Lending’s] violations to SEC MC 18 and SEC MC 19, and its continuous non-compliance with SEC MC 19, and other reportorial and compliance requirements show [SunCash Lending]’s blatant disregard to the Commission. Hence, the revocation of [SunCash Lending]’s Certificate of Authority is warranted,” the order read.

SunCash Lending was previously the subject of a search warrant implemented through a joint operation by the CGFD, SEC Enforcement and Investor Protection Department, and the Philippine National Police Anti-Cybercrime Group in December 2022.

The joint operation resulted in the arrest of a total of 83 company directors, officers, agents, and employees, as well as the discovery of the unauthorized operations of several online lending applications, including that of SunCash Lending.

Accordingly, the FLCD has decided to revoke the company’s corporate registration in conjunction with the revocation of its CA.

“Considering the number, nature, gravity, and duration of [SunCash Lending]’s violations that warrant revocation of its CA, [FLCD] finds that the revocation of its Certificate of Incorporation is likewise appropriate,” the FLCD said.

####

RELATED ARTICLES
Advertismentspot_img

Most Popular

Recent Comments