MANILA (UPDATE) - The Securities and Exchange Commission said it has ordered 7 online lenders to stop their operations until they are licensed.
The SEC said it has ordered PesoBee, Peso T-Safe Online Cash, RushLoan, SkyMart, SpendCash, Tapa, and WithU to immediately cease lending and lending-related activities until they have incorporated and secured from the SEC authorization to pursue such activities.
The regulator on Wednesday removed Cashwill from the list of unlicensed loan apps after initially including it in its list in a statement released on Tuesday.
None of the lenders were registered as a corporation with the Commission, and the companies also lacked the Certificate of Authority to Operate as a Lending/Financing Company, the regulator added.
“Further, the Commission found that the online lending operators have been imposing onerous and unreasonable terms, charging high interest rates, and performing acts that violate the right to privacy of their borrowers,” the SEC said.
Apart from the lending companies themselves, the owners and operators of their hosting sites were also told to stop advertising these lending businesses.
The SEC said it has so far revoked the certificate of registration of a total of 2,081 lending companies, and ordered 73 online lending apps to cease operations.
The regulator advised the public to check its website for a list of licensed lending and financing companies and their registration status.