SEC revokes license of another lending firm

MANILA, Philippines — The Securities and Exchange Commission (SEC) has cracked down on another lending firm for unlawful debt collection practices.

In an order dated July 14, the SEC’s Financing and Lending Companies Division revoked with finality the certificate of authority (CA) of Populus Lending Corp.

The SEC said Populus Lending has committed several violations of SEC Memorandum Circular 18, Series of 2019 (MC 18) on the Prohibition on Unfair Debt Collection Practices.

To date, the SEC has canceled the licenses of 41 lending companies due to different violations of applicable rules and regulations.

The SEC, through the Corporate Governance and Finance Department, has so far revoked the primary registration of 2,084 lending companies for non-compliance with Republic Act 9474 or the Lending Company Regulation Act.

The SEC also ordered the closure or stoppage of 81 online lending apps (OLPs) operated by unregistered financing and lending companies.

Six financing and lending companies, with their 26 OLPs, including those owned by Populus Lending, were also ordered to stop their operations for violation of rules on lending.

According to the SEC, Populus Lending also failed to disclose all of its operating OPLs, a violation of SEC Memorandum Circular 19, Series of 2019 (MC 19).

The case stemmed from nine formal complaints and 355 informal complaints filed by former Populus Lending clients from September 2022 to March 2023, alleging that “the company resorted to using threats, obscene language, false representations, and doxing tactics, or using information about an individual with malicious intent, in their debt collection practices.”

The SEC, through MC 18, expressly prohibits the use of threats, insults, obscenities, profane language, and any false representations or deceptive means to force any individual to pay their debts.

A search by the Philippine National Police Anti-Cybercrime Group (PNP-ACG), together with the SEC Enforcement and Investor Protection Department, in July 2022 revealed that Populus Lending had been operating Pesopop, Antwallet, Dragonloan, Catcash, Topeso, Takecash, Pesohere, Weagle, Cocopeso, Cashin, Candycash and Cashcow in its Pasig City office.

Data from the SEC’s Corporate Governance and Finance Department show that Populus Lending only has four registered lending platforms with the SEC, namely Pesopop, PesoCow, NewCash and LuckyLoan.

“Based on the digital forensic examination conducted onsite on July 22, particularly the seized devices, and the voluntary statements of the collection agents, (Populus Lending) and its collecting agents were operating and using 13 online lending applications (OLPs), and not four OLPs,” the order read.

The SEC previously issued a cease and desist order against Populus Lending on June 26, 2023 for its unfair debt collection practices.