The Securities and Exchange Commission (SEC) has intensified its enforcement against illegal lending practices, revoking the corporate registration and secondary license of Convenience Cash Lending Corp. for employing abusive debt collection methods, in a move that underscores its commitment to consumer protection.
Operating under the names Zada Cash and Bloom Cash, the firm faced regulatory action following over 600 consumer complaints, including alarming reports of threats and even the unsolicited delivery of funeral services to borrowers’ homes. Four of the complaints escalated into formal cases. The SEC found substantial evidence of misconduct, citing violations of rules requiring lending firms to act in good faith and refrain from harassment.
The regulator emphasized the importance of ethical conduct in debt collection, stating, “Lending companies and their third-party service providers must observe reasonable conduct and avoid unscrupulous acts.”
Separately, the SEC suspended Jia Financing Inc.’s certificate of authority for 60 days and fined the company ₱10,000 for operating an undisclosed website in breach of a moratorium on new online lending platforms imposed in 2021. The agency noted that Jia failed to declare this platform in its submitted business plan, contravening SEC Memorandum Circular No. 3, Series of 2022.
The actions form part of the SEC’s broader enforcement of the Financial Products and Services Consumer Protection Act, which mandates registration with the Credit Information Corp. and strict disclosure of lending operations.
These regulatory decisions signal the SEC’s zero-tolerance stance on opaque and abusive lending practices, reinforcing its policy focus on safeguarding borrowers from exploitation in the digital lending space.
