The Securities and Exchange Commission (SEC) has fined HC Consumer Finance Philippines Inc. for violating debt collection rules.
The firm was ordered to pay ₱50,000 as penalty for its first offense. It must immediately stop collecting payments from people who are not loan guarantors or co-makers, and must no longer use third-party homes as collection locations.
The SEC noted that contacting anyone in a borrower’s contact list other than those legally responsible for the debt counts as abusive practice. The order also requires the company to update its collection policies and submit a report proving it complies with the rules.
The action followed a complaint from a borrower, who said collectors visited a third-party residence even after he formally objected. The SEC explained such visits risk exposing the borrower’s debt and financial status to people with no legal stake in the loan, and ruled the company had exceeded legal limits on debt recovery.
