The Securities and Exchange Commission revoked the license of FCash Global Lending Inc. for unfair debt collection practices.
The SEC said in a statement it found FCash liable for multiple violations of SEC Memorandum Circular No. 18, Series of 2019, which spells out the provisions for the Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.
The company, which operates online lending platforms Fast Cash and Fast Cash Loan, has made multiple attempts to collect loan payments by contacting or threatening persons other than those that the borrower has identified as guarantors or co-makers, according to SEC.
FCash sent messages threatening borrowers with charges for estafa, complaints before the National Bureau of Investigation and service of writ of garnishment or writ of attachment.
It also threatened to report borrowers to their respective employers and used abusive words when talking to them over the phone.
The SEC noted how FCash took advantage of borrowers’ lack of awareness of legal terminologies to compel them to pay their loans.