The Securities and Exchange Commission (SEC) is moving forward its crackdown on unauthorized and abusive online lending activities, starting this year’s campaign with several individuals operating unregistered online lending applications.
In a joint operation on February 12, the combined forces of the SEC Enforcement and Investor Protection Department (EIPD) and the Philippine National Police Anti-Cybercrime Group (PNP-ACG) successfully implemented a warrant to search, seize and examine computer data in Cashtrees Lending Corporation’s office in Pasig City.
The Manila Regional Trial Court Branch 46 issued the search warrant against Cashtrees Lending for misuse of device penalized under Section 4(a)(5)(i)(ii) of Republic Act No. 10275, or the Cybercrime Prevention Act of 2012, in operating unregistered online lending applications in violation of Republic Act No. 9474, or theLending Company Regulation Act (LCRA).
The onsite digital forensic examination on the seized devices showed that the employees of Cashtrees Lending operated online lending applications such as Happylend, Rush Loan, Easy Money, Good Pocket, Dummy Loan, Lucky Star, Swipe Cash, 365 Cash, Home Peso, Mega Loan, Treecash and Goldpeso.
Cashtrees Lending is registered as a corporation and holds a certificate of authority to operate as a lending company. It operates registered online lending platforms such as Happylend, Creditcash and Cashmore.
However, majority of the online lending applications operated by Cashtrees Lending were unregistered. These include Goodpocket, Easymoney, 365 Cash and Rushloan, which have been the subject of cease and desist orders issued by the Commission.
Following the digital forensic examination, the PNP-ACG arrested 46 employees, including the manager of Cashtrees Lending for violating the Cybercrime Prevention Act of 2012 and the LCRA.
On February 13, the SEC-EIPD and PNP-ACG filed with the Department of Justice an inquest complaint against the arrested employees of Cashtrees Lending for violating Section 4(a)(5)(i)(ii) of the Cybercrime Prevention Act of 2012 and the LCRA in relation to Section 6 of the Cybercrime Prevention Act of 2012.
The SEC has been receiving numerous complaints against online lending applications (OLAs) for various violations of the LCRA and for abusive debt collection practices in violation of SEC Memorandum Circular No. 18, Series of 2019, which provides for the Office of the Commission Secretary Breezeway 3F PICC Secretariat Building Philippine International Convention Center (PICC) Complex Pasay City 8888-8141;8818-5478.
To see the list of licensed lending and financing companies and their registration status, please visit the Lending and Financing Companies corner on the SEC website at https://www.sec.gov.ph/lending-companies-and-financing-companies-2/lending-companies-and-financing-companies/. /PN
