Lender’s license revoked due to unfair debt collection practices

Metro Manila (CNN Philippines, July 4) – The Securities and Exchange Commission revoked the license of a company operating multiple lending platforms due to unfair debt collection practices.

SEC’s Corporate Governance and Finance Department (CGFD) Found KingABC Threatens Social Media Shame on Borrowers by Posting Their Names as Scammers and Contacting List People contacts of borrowers although they are not named co-creators or guarantors, “the SEC said in a statement Sunday.

The SEC said KingABC operates the Pondo Loan, Start Loan, Green Loan and Loan Club online lending platforms.

The agency also said the company “also used obscenities, slurs or profane language in its debt collection, and threatened to sue borrowers on the basis of fabricated legal grounds.”

In a June 7 order, the CGFD found that KingABC had committed 15 violations of SEC Circular No.18, 2019 series, which provides for the prohibition of unfair debt collection practices by finance companies and corporations. loan.

KingABC has already been penalized twice under SEC MC 18.

According to the CGFD, a third violation would merit either a fine, suspension or revocation of a company’s certificate of authority.

“It is also clear that at this point the revocation of the Respondent’s CA is not simply appropriate, but rather necessitated by the seriousness and number of his infractions,” said the CGFD.

It was also noted that apart from the 15 violations, 53 other complaints regarding debt collection practices were also filed.

“Even more telling is the fact that after the formal charge was issued, the Respondent’s abusive collection practices only worsened and became more hostile based on the evidence submitted by the Complainants. The ministry noted messages filled with death threats, swear words, and other heinous and objectionable language. “