(SEPTEMBER 16, 2019) – The Securities and Exchange Commission (SEC) shut down 19 illegal online lending apps on Monday over complaints of invasion of privacy and harassment.
The SEC issued cease and desist orders against the following apps: Instant Pera, Quick Pera, LendMo Philippines, Binixo, CashBus, Cashcat, Cashuttle, Crazy Loan, Flash Cash, Happy2Peso, Hatulong, MeLoan, MoneyTree Quick Loan, Pera Express, Pera4u, Peramart, PesoLending, QuickPeso, and Umbrella.
“That’s the thing about these 19, they’re not registered with the SEC and they also have no certificate to operate,” said Commissioner Kelvin Lester Lee.
Meanwhile, officials from FinTech Alliance Philippines, Institute of Corporate Directors, Bangko Sentral ng Pilipinas, National Privacy Commission, and the Securities and Exchange Commission signed an agreement to create a code of conduct among online lending apps.
“The industry-wide code of ethics and conduct should help steer the financial technology or fintech industry towards higher standards of behavior and away from attempts to exploit it for money laundering, terrorist financing, fraud and invasion of privacy,” said Lee.
The National Privacy Commission (NPC) reports it has received nearly 1,000 complaints of harassment from online lenders.
FinTech Alliance Philippines Chairman Lito Villanueva said it has become the practice of some illegal online lending sites to pressure consumers to settle their loans by shaming them to their relatives and friends.
“Hindi nila alam na kapag nag-yes sila sa mga online lending apps na ‘yun ay pinahihintulutan nila o ina-allow nila ang mobile lenders na kuhain ang kanilang contact details. At kung sakaling hindi sila makabayad ngayon, iyon ang kanilang gagamitin para magpadala ng mga SMS na tinatawag nating public shaming,” said Villanueva.
The group has also recommended putting up a list of legitimate money-lending apps on government websites to guide online consumers.
“We are suggesting to regulators that we provide a list of legitimate players in the industry which they could actually put in their respective websites: NPC, SEC, BSP, etc.” said Villanueva.
Privacy Commissioner Raymund Liboro also reminded the public to be more mindful of the apps that they download.
“Tingnan niyo po ‘yung mga review tungkol dito. Kung nakikita niyo po na ‘yung iba ay nagsasabing hindi ito maganda ay huwag niyo na pasukin pa o patulan pa,” said Liboro. (Katrina Ventura/JMF)