THE Securities and Exchange Commission (SEC) has revoked the certificate of authority of Super Cash Lending Corp. due to its unfair debt collection methods.
In a statement on Monday, the commission said that according to a Nov. 11 order, its corporate governance and finance department (CGFD) determined that Super Cash had incurred nine violations under SEC Memorandum Circular No. 18 dated 2019, which mandates for the prohibition on unfair debt collection practices.
CGFD said the company had threatened borrowers with the publication of their loan and personal details, including estafa and theft charges, on social media.
Super Cash has online lending platforms such as Super Cash, Cash Porter, and Loan Bee.
According to CGFD, Super Cash threatened that borrowers would be blacklisted at the National Bureau of Investigation (NBI), and used profane and abusive language when collecting debts.
“In one of the screen captures submitted by one of the complainants, messages showing threats of inflicting grave physical harm upon the person of the complainant could be seen,” CGFD said.
CGFD said a third violation under the SEC’s circular is the charge of a monetary fine, suspension, or revocation of the company’s certificate of authority depending on the gravity and facts of the case.
“[T]he revocation of respondent’s certificate of authority is not merely appropriate, but rather necessitated by the gravity and number of its offenses,” CGFD said.
SEC Commissioner Kelvin Lester K. Lee said the agency will never tolerate the harassment and other abusive practices of lending and financing companies.
“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,” Mr. Lee said.
SEC also revoked the certificate of authority of FCash Global Lending, Inc. for its unfair debt collection practices. The company had one of the highest number of complaints for collection harassment starting 2017.
Meanwhile, SEC also ordered for the closure of four online lending applications, namely: CashAB, CashOcean, KwikPeso, and Little Cash due to the lack of authority to operate as a lending or financing company.
The SEC’s memorandum circular 18 took effect on Sept. 18, 2019 in response to the complaints of unreasonable, abusive, and unfair practices that are done by lending and financing companies used in order to collect debt.
BusinessWorld sought the comment of Super Cash, but has not received a reply as of deadline time. — Revin Mikhael D. Ochave