PAOCC launches one-stop shop for online lending victims

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The opening of the complaint desk also comes as the Securities and Exchange Commission revokes the licenses of hundreds of lending companies

MANILA, Philippines – Government agencies led by the Presidential Anti-Organized Crime Commission (PAOCC) launched on Monday, June 16, a one-stop shop for victims of online lending applications (OLAs).

PAOCC launched the one-stop shop in its Pasay City office in collaboration with the Department of Justice, Philippine National Police (PNP), Securities and Exchange Commission (SEC), and National Telecommunications Commission.

The complaint desk has representatives from the SEC, PNP, and National Bureau of Investigation (NBI). About 100 complaints were filed during the one-stop shop’s first day.

PAOCC Executive Director Gilbert Cruz hopes the presence of all concerned agencies will make it easier and cheaper to press charges against abusive platforms.

In April and May, PAOCC received 13,000 complaints related to OLAs. Cruz noted that these platforms often subjected victims to threats and harassment when collecting due payments.

Some even charged their borrowers interest rates as high as 50%.

“These abusive online lending operators have caused serious harm to thousands of Filipinos. Under the President’s directive, we are going after these groups to protect our people and ensure they are held accountable,” Cruz said.

Lending licenses revoked

In an order dated May 30, the SEC canceled the licenses of around 401 lending firms for failure to comply with the corporate watchdog’s reportorial requirements. It also revoked their certificates of authority to operate a lending company.

Their violations include non-submission of their audited financial statements and director or trustee appraisal or performance report, among others.

The SEC initially encouraged the companies to avail of its amnesty program in October 2023. This would have allowed companies to settle their fines and penalties at lower rates.

The companies were eventually placed under delinquent status after they failed to avail of the amnesty.

“Under SEC Memorandum Circular No. 19, Series of 2023, corporations with a delinquent status have a period of six months from the receipt of order of delinquency to submit their reportorial requirements. Failure to comply authorizes the commission to revoke their corporate registration,” the corporate watchdog said in a statement.

Also in May, the SEC suspended 56 other lenders for failure to comply with reportorial requirements.

The corporate regulator also revoked the licenses of lenders such as Digido, which allegedly opened and operated four branches in Cavite without securing the necessary papers. Digido denied the allegations. (READ: SEC revokes license, registration of online lending firm Digido)

Earlier this year, the SEC revoked the license of Surity Cash for what it described as “unfair debt collection practices.” – Rappler.com