The Securities and Exchange Commission (SEC) said it ordered Microdot Lending Corp. to immediately halt its operations for allegedly engaging in unfair debt collection practices and failing to disclose some of its online lending platforms.
The order, dated Sept. 23, directs Microdot and its affiliated platforms, including their owners, operators, agents and representatives, to immediately stop promoting and facilitating any lending activity or transaction.
The SEC said it found that Microdot failed to disclose the operations of Credit Peso Pro and MF Cash, violating Section three of SEC Memorandum Circular No. 19, Series of 2019, which requires lending companies to report all their existing online lending platforms to the commission.
The order covers nine online lending platforms: MF Cash, Credit Cash, Credit Peso, Pesoloan Mart, Cash Baka, Cash Mabilis, Go Peso, Instant Loan and Timely Loan.
The SEC said it received multiple complaints since 2024 alleging Microdot’s involvement in unfair debt collection practices, which violate the implementing rules and regulations of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA).
The company was also cited for violating Rule 8(c) of the implementing rules of Republic Act No. 9474, or the Lending Company Regulation Act, due to its continued noncompliance with SEC directives such as show-cause letters, assessment notices and audit findings.
“[Microdot’s] operation of the undisclosed OLPs, blatant disregard of the SEC’s regulatory authority over it, and practice of unfair debt collection, may unjustly cause grave or irreparable injury or prejudice to the borrowing public, thereby imperiling their rights as enshrined in the FCPA,” the order read.
“Additionally, its employment of unfair debt collection practices, shown and established by substantial evidence, is a violation of the SEC-FCPA-IRR and should be immediately halted to safeguard the rights of its borrowers,” it said.
