THE SECURITIES and Exchange Commission (SEC) revoked the Certificate of Authority (CA) of KingABC Lending Corporation, which operates the Pondo Loan, Start Loan, Green Loan, and Loan Club online lending platforms, to operate as a loan for its unfair debt collection practices.
In an order dated June 7, the Corporate Governance and Finance Department of the SEC (CGFD) found that KingABC had committed 15 violations of SEC Circular No.18, Series of 2019 (SEC MC 18) , which provides for the prohibition of unfair debt collection. Practices of finance companies and loan companies.
CGFD discovered that KingABC threatened borrowers with shame on social media by posting their names as scammers and contacting people on the borrower’s contact list, although they were not named as co-creators or guarantors.
KingABC also used obscenities, slurs or profane language in its debt collection, and threatened to sue borrowers on fabricated legal grounds, according to the CGFD.
The CGFD has already penalized KingABC for its first and second violations of the SEC MC 18. A third violation merits the imposition of a fine, suspension or revocation of the company’s certification authority, depending on the facts, circumstances and gravity of the case. .
“It is also clear that at this point, the revocation of the Respondent’s CA is not simply appropriate, but rather necessitated by the seriousness and number of his infractions,” said the CGFD, noting that ‘Outside of KingABC’s 15 violations, 53 other complaints have been against the company for its debt collection practices, as of the date of the order.
“Even more revealing is the fact that following the issuance of the formal charge, the Respondent’s abusive collection practices only worsened and became more hostile based on the evidence submitted by the complainants. The ministry noted messages filled with death threats, swearing and other heinous and objectionable language. “
SEC MC 18 came into effect on September 8, 2019, as part of the Commission’s response to several complaints about unreasonable, abusive and unfair practices used by loan and finance companies to collect debt from borrowers.
The SEC continues to monitor loan and finance companies for their compliance with applicable laws, rules and regulations.
KingABC’s board revocation brings the total number of finance / loan companies whose licenses have been canceled due to various violations of SEC rules and regulations to 35.
To date, the SEC has also revoked the master registration of a total of 2,081 loan companies for their inability to obtain the required certificate of authority, according to Republic Law No. 9474 or the Law of the Republic of 2007 on the regulation of loan companies.
Last year, the Commission also ordered 58 online loan applications to go out of business for lack of authorization to operate as a loan or finance company.