The Securities and Exchange Commission (SEC) has revoked the corporate registration and secondary license of lending firm Convenience Cash Lending Corp., which operates as Zada Cash and Bloom Cash over its alleged “unfair debt collection practices.”
The SEC said in an order that Convenience Cash committed four violations of SEC Memorandum Circular No. 18, Series of 2019, which prohibits lending and financing companies from engaging in such practices.
The revocation order followed more than 600 complaints received by the SEC regarding the company’s collection methods, four of which escalated to formal complaints. These complaints alleged that the company sent threatening messages to borrowers and their contacts, and even delivered funeral services to borrowers’ addresses.
“When collecting the amount due to them, [lending companies and their third-party service providers] are mandated to observe good faith, reasonable conduct and refrain from engaging in unscrupulous and untoward acts,” the order read.
“After a careful evaluation of the contentions and the documents of the [company] and all the complainant-borrowers, FinLend finds the complainant-borrowers to have supported their claims with substantial evidence,” the SEC said.
The SEC earlier issued a cease-and-desist order against Convenience Cash in May for failing to comply with an SEC directive requiring online lending platform operators to register with the Credit Information Corporation, as mandated by Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act.
In a separate action, the SEC also suspended the license of Jia Financing Inc. for 60 days for failing to disclose new loan products and services.
While Jia Financing had submitted a business plan, the SEC said it failed to disclose that it would operate the jia.ph website and lend amounts ranging from $50,000 to $200,000 per client. It said this was deemed a violation of SEC Memorandum Circular No. 3, Series of 2022.
“The non-disclosure of these material changes in its operations warrants the suspension of its certificate of authority,” the SEC order read.
 for unfair debt collection practices and suspended Jia Financing Inc.'s license for non-disclosure of new loan products.){kind=link}