SEC: the revocation of the license of KingABC Lending final and enforceable

The Securities and Exchange Commission (SEC) has declared that its revocation of the certification authority (CA) of KingABC Lending Corp.

In a statement released Wednesday, the committee said its corporate governance and finance department (CGFD) had dismissed KingABC Lending’s petition for reconsideration “for lack of merit.” The entity also failed to file an appeal within the time limit.

KingABC Lending operated the Pondo Loan, Start Loan, Green Loan and Loan Club online lending platforms.

In June, the entity received a revocation order after being found guilty of 15 violations of SEC Circular No.18, 2019 series (MC 18) or the prohibition of unfair debt collection practices by finance companies and loan companies.

This is in addition to the 53 other complaints filed against the entity for its debt collection practices.

“The 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 without being named as co-creators or guarantors,” he said. said the SEC.

He also used obscenities, slurs and profane language whenever he collected debts and threatened to sue borrowers on an invented legal basis.

KingABC Lending has already been penalized twice for violating MC 18. With a third violation, he risked the imposition of a fine, suspension or revocation of his certification authority, “depending on the facts, circumstances and the seriousness of the case “.

When KingABC Lending filed a motion for reconsideration, it argued that the 15 complaints filed “contained only allegations without evidence” and that the number of complaints was not sufficient to warrant revocation of its NOC.

However, the CGFD rejected the motion in a resolution dated August 2, saying there was sufficient evidence to justify revoking KingABC Lending’s license.

“A review of all the screenshots of the messages submitted by the 15 complainants, including the 53 others who also filed complaints against the respondents, reveals some commonalities and recurring patterns, including the substance of the threats and the sentence construction of said messages, ”the resolution said. quoted as saying.

The SEC’s CGFD also said KingABC Lending also admitted that its agents were “illegal” and had “unauthorized and unfair misconduct” towards borrowers. – Keren Concepcion G. Valmonte