MANILA — The Securities and Exchange Commission (SEC) has issued cease and desist orders (CDOs) against seven online lending firms operating without registration.

In a statement on Monday, the Commission said the CDOs were issued on August 15 against Cash Konek, Pesosuki, Yescom Lending-Quick Cash Loan, Peso101-Fast Loans PH, Peso Cow-Mabilis Pera Loan, Swiftloan: Loan App Philippines, and Pera Loan: Fast Cash PH.

The orders stop these firms from “promoting or facilitating lending-related transactions without the necessary registration and approval from the Commission.”

The SEC said the orders “also cover the companies’ owners, operators, promoters, representatives, agents, and any and all persons claiming or acting on their behalf.”

The Commission noted that the firms’ unrecorded online lending platforms (OLPs) violate SEC Memorandum Circular No. 19, Series of 2019, which requires financing and lending firms to disclose their OLPs. Their operations, the SEC said, violate registration policies.

Republic Act 11765, also known as the Financial Products and Services Consumer Protection Act, “authorizes the SEC to impose enforcement actions, such as a CDO, against financial service providers for noncompliance with the provisions of the law, its implementing rules, and other applicable laws.”

“The companies’ operations of unregistered and undisclosed OLPs circumvent the Commission’s regulatory and supervisory authority, thereby exposing the general public to potential risks, such as abusive and unfair debt collection practices, unjust interest rates, and violation of data privacy rights, according to FinLend,” the SEC said.

“In light of the [companies’] continued unauthorized operation of [their OLPs], the Commission finds it necessary to issue [these CDOs] in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies,” it added. (PNA)