The Securities and Exchange Commission has filed a criminal complaint with the Department of Justice against six lending firms for employing abusive debt collection practices and failure to disclose their online lending platforms.
SEC, in a statement, said its Enforcement and Investor Protection Department filed criminal charges against FESL Lending Investor Corp., FESL Business Process Outsourcing Services, Realm Shifters Business Process Outsourcing Services, U-Peso.ph Lending Corp., Philippine Microdot Financing Corp. and Armorak Lending Inc.
SEC alleged the companies violated of Republic Act No. 9474, or the Lending Company Regulation Act, Republic Act No. 11765 or the Financial Products and Services Consumers Protection Act and the SEC FCPA Implementing Rules and Regulations, according to SEC.
The agency also implicated Gwen Lemuel Zamora, incorporator, director and corporate secretary of FESL Lesing as well as the registered owner of FESL BPO, and Jennifer Mangubat Salvador, the registered owner of Realm Shifters.
The regulator also charged the beneficial owners, incorporators, and officials of the six lending firms.
The cases stemmed from the joint operation between SEC Task Force on Online Lending Application and Philippine National Police Anti-Cybercrime Group following several complaints against these companies.
The FCPA prohibits the use of unfair and abusive debt collection practices by lending corporations against borrowers.
LCRA also provides that no corporation can act as lending company without authority to operate from the SEC.
“A plain-view inspection of the desktop monitors confirmed both organizations’ suspicions that the respondent managerial employees were sending threatening messages to the OLP’s borrowers and borrowers’ contacts which is a clear violation of the FCPA,” SEC said.
“As attested by the Digital Forensic Examiners and arresting officers from PNP-ACG and personally witnessed by members of SEC-EIPD team, the collecting specialists of respondents employees threats, harassment and intimidation in collecting the debts from delinquent borrowers,” it said.
