Senate probe into unregistered, unauthorized online lending platforms sought

Senate Majority Leader Joel Villanueva is urging the upper chamber to investigate the rise of unauthorized and unregistered online lending platforms in the country.

Villanueva filed proposed Senate Resolution 641 amid reports of harassment and intimidation by online lending platform collecting agents of individuals who were unable to pay their loans on time.

The lawmaker mentioned that some lending companies even unduly increase the loan interest rates and other charges for the failure of the debtor to pay according to schedule.

Further, Villanueva said several online lending platforms engage in irresponsible data harvesting and violate their clients’ right to privacy and safe and secure transactions to force them to pay their balance.

“As more and more Filipinos start to use the services of online lending platforms, there is a need to ensure that they are protected against deceptive, unfair, and unconscionable sales acts and practices, including abusive collection and debt recovery practices,” he said in SR 641.

“Likewise, measures have to be put in place and properly implemented to guarantee that consumers are only transacting with registered and authorized online lending companies to protect their interest and general welfare,” he added.

Villanueva mentioned the Securities and Exchange Commission’s (SEC) recent crackdown on 33 unregistered online lending platforms on Google Play Store.

These lending platforms reportedly violated SEC Memorandum Circular No. 19, series of 2019, which requires financing and lending companies to report and register their online lending platforms as business names, as well as display on their advertisements and platforms their respective corporate names, SEC Registration Numbers and Certificate of Authority Numbers.

The lawmaker also mentioned that the SEC revoked the Certificate of Registrations of 2,084 lending and financing companies that failed to secure their Certificate of Authority and canceled the CA of 39 financing and lending companies because of various violations.

The SEC has also been receiving complaints of abusive debt collection practices and other violations of online lending applications as it recently took down more entities engaged in unauthorized lending activities, Villanueva said in his resolution.

"Our people should be protected against deceptive, unfair, and unconscionable acts and practices, including abusive collection and debt recovery practices," Villanueva said in a separate statement.

"Debtors deserve to be treated fairly and with dignity," he added. — DVM, GMA Integrated News