The Securities and Exchange Commission (SEC) is rolling out new accreditation standards for third-party collection agencies (TPCAs) to shield borrowers from abusive lending and collection practices.
Draft rules place TPCAs under direct SEC supervision, setting uniform conduct standards for all debt collection work. A TPCA is defined as an SEC-registered stock corporation hired by financing and lending firms to recover debts.
Only accredited TPCAs and in-house collection agents will be permitted to conduct debt collection once the rules take effect. Accreditation applications must be filed via the SEC’s online system; approval is valid for three years. Renewals must be submitted at least 30 days before expiry—late filings incur penalties.
Accredited agencies will be listed in a public, regularly updated registry. Delisting applies for unfair practices, serious or repeated rule breaches, adverse administrative or criminal rulings, or voluntary withdrawal. A fourth offense leads to accreditation revocation.
Prohibited acts include unauthorized home visits and improper use of automated messaging, carrying fines from ₱60,000 to ₱200,000. Directors and officers of delisted agencies may also be blacklisted.
Financing and lending companies face penalties up to ₱2 million for engaging unaccredited or undisclosed collectors. Four violations may result in suspension or cancellation of their authority to operate.
The public may submit comments to the SEC until October 15.
