The Securities and Exchange Commission on Monday said it has revoked the certificate of authority (CA) of lending firm Super Cash Lending Corp. for its unfair debt collection practices.
In an order, the SEC’s Corporate Governance and Finance Department 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.
It found Super Cash liable for nine violations of its memorandum circular on the prohibition on unfair debt collection practices of financing and lending companies.
Super Cash also threatened borrowers that they would be blacklisted with the National Bureau of Investigation, and used profane and abusive language to collect debts, the SEC said.
“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,” it said.
A third violation of the SEC’s circular 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.
“The revocation of respondent’s CA is not merely appropriate, but rather necessitated by the gravity and number of its offenses,” the agency said.
SEC’s memorandum circular on unfair collection practices took effect on September 8, 2019, as part of the agency’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,” he said.
Earlier this year, the SEC revoked the CA of FCash Global Lending Inc., which had one of the most number of complaints for collection harassment since 2017. It also 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 aside from the abusive collection practices.
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I also apply for it..named super cash lending corp.they approved me..and they texted me that i can withdraw my cash to rd pawnshop..but for the requirements..they want me to provide 1,450 pesos..and now im not already claim it..what can i do..