The Securities and Exchange Commission (SEC) said Tuesday it fined Global Dominion Financing Inc. P50,000 for abusive debt collection practices, including the harassment of a borrower by third-party agents.
The SEC Financing and Lending Companies Department (FLCD) issued the order after a borrower complained of being intercepted on the road to demand payment and receiving a series of high-pressure text messages.
The regulator said it found these actions violated SEC Memorandum Circular 18 and the Financial Products and Services Consumer Protection Act (FCPA).
In its ruling, the commission rejected the firm’s attempt to distance itself from the behavior of its contractors. The regulator said that companies bear “solidary responsibility” for the conduct of third-party service providers engaged in marketing or transacting with consumers.
“[Global Dominion] cannot evade administrative accountability by attributing the prohibited acts to collection agents or third-party providers,” the order read.
The SEC said intercepting a borrower on a public road without a court order or lawful authority does not constitute a legitimate collection practice. The agency ordered the company to strictly comply with fair and lawful consumer protection standards moving forward.
In a separate advisory, the SEC warned the public against MTSN International OPC, saying the entity is not authorized to solicit investments.
The regulator said the company lacks a secondary license to sell securities or investment contracts. According to the SEC, the group’s operations involve enticing investors through online channels and personal referrals to fund various business ventures.
