PH SEC files harassment charges against lending, BPO firms
MANILA, PHILIPPINES — The Securities and Exchange Commission (SEC) in the Philippines is initiating legal action against certain online lending firms and Business Process Outsourcing (BPO) companies reportedly harassing and demeaning their clients.
According to SEC Enforcement and Investor Protection Chief Oliver Leonardo, complaints have been filed against four online lenders, two BPOs, and 28 individuals.
The firms named in the complaint include FESL Lending Investor Corp., FESL Business Process Outsourcing Services, Realm Shifters Business Process Outsourcing Services, U-Peso.ph Lending Corporation, Philippine Microdot Financing Corp., and Armorak Lending Inc.
Five Chinese nationals allegedly operating online lending platforms are also implicated.
Leonardo stated that these companies violated the Financial Products and Consumer Protection Act, the Lending Company Regulation Act, and the Data Privacy Act.
“The law, Section 8, prohibits lending companies from harassing and taking advantage of debtors, and of sharing their contact details,” he explained.
Violating these provisions carries a criminal penalty of up to PHP2 million (US$35,942) and five years imprisonment.
The complaints follow a call from Philippine Senator Joel Villanueva for the government to investigate unregistered online lending platforms that engage in abusive collection practices.
