MANILA - The Securities and Exchange Commission on Thursday said it has revoked the license of Cashtrees Lending Corporation for violating a moratorium on new online lending platforms (OLPs).
The regulatory agency said Cashtrees also violated the SEC's order on disclosing advertisements for OLPs.
The SEC said its Enforcement and Investor Protection Department (EIPD) found that Cashtrees launched and operated eight unrecorded OLPs, namely Rush Loan, Easy Money, Good Pocket, Lucky Start, Swipe Cash, 365 Cash, Mega Loan, and Gold Peso, after the moratorium on new OLPs took effect on November 2, 2021.
The SEC imposed the moratorium following complaints of predatory lending by lending apps that charge high interest rates and impose strict payment terms.
“Due to the multiple violations of SEC MC 19 and SEC MC 10 committed by [Cashtrees] in launching the eight unrecorded OLPs and due to the additional violations of SEC MC 19 committed by [Cashtrees] in its failure to comply with regard to its three recorded OLPs, [Cashtrees] showed its wanton disregard of the Commission’s rules and regulations,” the SEC said in its revocation order.
The SEC said it has now canceled the licenses of 37 lending firms for various violations.