The Securities and Exchange Commission (SEC) has revoked the certificate of authority (CA) of Super Cash Lending Corp. to operate as a lending company for its unfair debt collection practices.
In an order dated November 11, the SEC Corporate Governance and Finance Department (CGFD) found Super Cash liable for nine violations of SEC Memorandum Circular No. 18, Series of 2019 (SEC MC 18), which provides for the Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.
The CGFD found the company, through its online lending platforms Super Cash, Cash Porter, and Loan Bee, to have threatened borrowers with shaming on social media through the publication of their loan and personal details, as well as with estafa and theft charges.
Super Cash likewise threatened borrowers that they would be blacklisted with the National Bureau of Investigation, and used profane and abusive language to collect debts, according to the CGFD.
The CGFD added: “Worse, in one of the screen captures submitted by one of the complainants, messages showing threats of inflicting grave physical harm upon the person of the complainant could be seen. These unfair collection practices are all too obnoxious to ignore.”
A third violation of SEC MC 18 merits the imposition of either a monetary fine, suspension, or revocation of the company’s CA, depending on the facts, circumstances, and gravity of the case.
“[T]he revocation of respondent’s CA is not merely appropriate, but rather necessitated by the gravity and number of its offenses,” the CGFD said.
SEC MC 18 took effect on September 8, 2019, as part of the Commission’s response to several complaints for unreasonable, abusive, and unfair practices that lending and financing companies used in order to collect debt from borrowers.
“We respect the right of lending and financing companies to formulate and adopt certain strategies to effectively collect debts and secure their profitability,” SEC Commissioner Kelvin Lester K. Lee said.
“However, harassment and other abusive or predatory practices will never be acceptable and tolerated. As we pursue erring lending and financing companies, we also advise the public to be cautious and mindful of their transactions with entities representing themselves as such.”
Earlier this year, the SEC revoked the CA of FCash Global Lending, Inc. for committing unfair debt collection practices. The company, which previously operated through online lending platforms Fcash, Fast Cash and Fast Cash Loan, has had one of the most number of complaints for collection harassment since 2017, according to the CGFD.
Furthermore, the Commission ordered four online lending applications, namely CashAB, CashOcean, KwikPeso, and Little Cash, to cease operations for lack of authority to operate as a lending or financing company. The online lending operators were also found to have employed abusive collection practices. (PRESS RELEASE)