The Securities and Exchange Commission (SEC) said it imposed a P1-million fine on Surity Cash Lending Investors Corp. for allegedly engaging in unfair and abusive debt collection practices.
The regulatory body found Surity Cash guilty of three counts of violating SEC Memorandum Circular (MC) No. 18, Series of 2019, which outlines prohibitions for financing and lending companies regarding abusive collection methods.
The SEC allowed Surity Cash to maintain its corporate registration, but issued a “stern and final warning” to the company.
“While this commission is not imposing the penalty of suspension or the supreme penalty of revocation at this time, unfair or abusive debt collection and recovery practices have no place in the lending/financing industry. These practices will never be considered reasonable and legally permissible means to collect a loan,” the decision said.
The SEC warned that a repeated violation of MC No. 18 and other laws would be “dealt with more severely.”
Surity Cash was held liable for two counts of violating Section 1 of MC 18, which specifically bans the use or threat of violence, criminal means, obscenities, insults or profane language. This section also prohibits the disclosure of names and personal information of borrowers who fail to repay their debts.
The company was also cited for a third violation under Section 4 of the circular. This violation stemmed from the late submission of a sworn certification confirming compliance with the requirement to establish a customer service department or designate personnel to handle borrower complaints and concerns.
Section 4 also mandates that lending and financing companies must adopt a policy ensuring that personnel involved in debt collection disclose their full names or identities to borrowers.
 fined Surity Cash Lending Investors Corp. P1 million for alleged three counts of violating rules against unfair debt collection practices, including threats and unauthorized data disclosure.){kind=link}