SEC revokes license, registration of online lending firm Digido

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Digido says it has filed a motion for reconsideration, and denies operating branches in Cavite without authorization from the Securities and Exchange Commission

MANILA, Philippines – The Securities and Exchange Commission (SEC) revoked the corporate registration and license of online lending company Digido for operating unlicensed branches.

The revocation also includes Unapay and Unacash, two other online lending platforms that Digido owns.

In a statement on Friday, May 23, the SEC’s Finance and Lending Companies Department (FinLenD) found that Digido violated the Financing Company Act of 1998, which requires financing companies to secure authorization from the corporate watchdog to operate a branch, agency, extension office, or other unit.

“Accordingly, FinLenD revoked Digido Finance’s certificate of authority to operate as a financing company and its primary registration,” the corporate watchdog said.

In an order dated May 9, the SEC said that Digido opened four branches in Cavite in 2021, claiming they were exhibit booths that were supposed to introduce its products and services.

Digido Finance, the company that operates the online lending application, said in a statement on Monday, May 26, that it has filed a motion for reconsideration before the SEC.

It also denied the SEC’s accusations and maintained that the booths were established for “marketing purposes.”

However, the corporate watchdog’s May 9 order noted that Digido’s Facebook posts said that people could apply for cash loans of up to P10,000 at these so-called exhibit booths.

“Thus, any form of office, even a mere table placed outside of the principal office of a [financial company] intended to be used to solicit loan applications from the public, shall require a [certificate of authority] from the commission,” the agency said. – Rappler.com