Because of its abusive and predatory debt collection practices, the Securities and Exchange Commission (SEC) disallowed Super Cash Lending Corp from operating as a lending company.
In an order dated November 11, the SEC said that its Corporate Governance and Finance Department (CGFD) has found the subject firm with nine violations of SEC Memorandum Circular No. 18, Series of 2019 prohibiting financing and lending companies from using unfair debt collection practices.
The company was found guilty of threatening borrowers from their online lending platforms, Super Cash, Cash Porter, and Loan Bee, with shaming by publishing their loan and personal details on social media. Furthermore, delinquent borrowers were harassed with threats of estafa and theft charges.
In his statement, SEC Commissioner Kelvin Lester Lee said that the agency respects the right of lending and financing companies to formulate and adopt certain strategies to effectively collect debts and secure their profitability.
“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 transaction with entities representing themselves as such,” the statement said.
The CGFD also found out that Super Cash threatened borrowers with blacklisting with the National Bureau of Investigation. The company’s collection agents would also use profane and abusive language to collect debts.
“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,” the CGFD said.
It further added that the revocation of Super Cash’s CA (Certificate of Authority) is not merely appropriate, but rather necessitated by the gravity and number of its offenses.
SEC’s MC 18 took effect on September 8, 2019, in response to numerous complaints about unreasonable, abusive, and unfair practices that lending and financing companies used in order to collect a debt from borrowers.
- Due to Unfair Practices, SEC Bars Lending Firm’s Operation - December 30, 2020
- Motorists Can Use Partially Open Skyway 3, Free for a Month - December 28, 2020
- Monthly Contributions to the SSS’s Mandatory Provident Fund Starts in January 2021 - December 26, 2020