The Securities and Exchange Commission said over the weekend it revoked with finality the lending license of Populus Lending Corp. over its alleged unlawful debt collection practices and failure to disclose its online lending platforms.
The SEC said its Financing and Lending Companies Division found that Populus Lending committed several violations of SEC Memorandum Circular No. 18, Series of 2019 on the prohibition on unfair debt collection practices.
It also violated the SEC rules requiring financing and lending companies to disclose all of the OLPs they operate to the commission, it said.
The case stemmed from nine formal complaints and 355 informal complaints filed by former Populus Lending clients with the SEC alleging that the company resorted to using threats, obscene language, false representations and using information about an individual with malicious intent in their debt collection practices.
The complainants cited receiving threatening messages, aggressive comments on their social media posts, sending demand messages to people not involved in the loan but are acquainted with the complainants and threatening to black-list them in all financial institutions, among others.
MC 18 prohibits the use of threats, insults, obscenities, profane language and any false representations or deceptive means to force any individual to pay their debts.
The said guidelines also forbid lending and financing companies from contacting people in the borrower’s contact list without their consent.
Meanwhile, the implementation of a search warrant by the Philippine National Police Anti-Cybercrime Group, together with the SEC Enforcement and Investor Protection Department, in July 2022 revealed that Populus Lending had been operating several lending platforms including Pesopop, Antwallet, Dragonloan, Catcash, Topeso, Takecash, Pesohere, Weagle, Cocopeso, Cashin, Candycash and Cashcow in its Pasig City office.
Data from the SEC showed that the company only has four registered online lending platform, including Pesopop, PesoCow, NewCash and LuckyLoan.
“Based on the digital forensic examination conducted onsite on 22 July 2022, particularly the seized devices, and the voluntary statements of the collection agents, [Populus Lending] and its collecting agents were operating and using thirteen (13) online lending applications (OLPs), not four (4) OLPs,” the revocation order read.
“Wherefore, in view of the foregoing, and in accordance with [the 2016 Rules of Procedure of the SEC], the Order revoking the Certificate of Authority to Operate as a Lending Company of Populus Lending Corporation is final and executory,” the order stated.
