The Securities and Exchange Commission (SEC) said over the weekend it cancelled the lending license of Surity Cash Lending Investors Corp. which operates the online lending platform Surity Cash.
It said the company allegedly engaged in unfair and abusive debt collection practices.
The SEC’s Financing and Lending Companies Department (FinLenD), in an order dated Jan. 14, 2025, said Surity Cash broke the rules set by SEC Memorandum Circular No. 18, Series of 2019 (MC 18).
The circular bans unfair debt collection practices, including using threats or violence, insulting language and sharing personal information about borrowers.
It issued the order after it received five complaints about Surity Cash’s collection methods. The company was accused of harassing borrowers and using harsh language to pressure them into paying.
As a result of the violations, the SEC revoked Surity Cash’s authority to operate as a lending company. The company’s registration with the SEC was also cancelled.
The SEC said its order became final and executory after Surity Cash failed to file any appeal or motion for reconsideration within the reglementary period.
The SEC said the move is part of its effort to ensure that online lending companies treat their customers fairly and follow the law.
The SEC in 2024 cancelled the licenses of 39 financing/lending companies to date due to various violations of applicable rules and regulations.
It also ordered 58 online lending applications to stop operations due to a lack of authority to operate as a lending or financing firm.