Another 20 Lending Companies Suspended By SEC

SEC Suspends An Addition 20 Lending Companies

The Securities Exchange Commission (SEC) has ordered the suspension of another 20 lending companies following the suspension of 84 lending firms.

On Friday (April 07, 2017), SEC suspended the operations of additional 20 lending corporations for failing to obtain a Certificate of Authority (CA) to officially operate as a Lending Company. CA is required on the Lending Company Regulation Act of 2007 or Republic Act No. 9474.

Republic Act No. 9474, Section 4 states “No lending company shall conduct business unless granted an authority to operate by the SEC.” SEC also released the names of the 20 lending firms, which face suspension.

Here are the names of 20 lending firms facing suspension.

• Angeles Lending Investor Inc.
• Champion Lending Corp.
• Charton Lending Corp.
• CLIA Lending Investor Inc.
• Eminence Lending Investor, Inc.
• ExpressAdvance Inc.
• Green Hope Credit Corp.
• Kiangan Credit Resources and Trading Corp.
• Lending Markets of Cebu Corp.
• LKT Lending Co., Inc.
• Metro Asia Pacific Credit Corp.
• Metro Sunrise Lending Investor Inc.
• Multiplier Lending Corp.
• Peso and Cents Credit Resources, Inc.
• Prisunic Lending Corp.
• Prosperity Link Inc.
• PS Lending Investors Inc.
• RSN Punjab Trading and Lending Corp.
• Benedict Lending Investor Co., Inc.
• The Quantum Link Lending Corp.

Previously, 66 companies and its 18 partnerships were suspended by SEC in eliminating all the informal lenders in the Philippines. 5 informal lenders were also threatened by SEC filing criminal charges against them as a part of government’s war against loan firms offering ‘five-six’ lending.

The SEC-led investigation team is now collecting evidence and information against 5 individuals that might possibly involve in ‘five-six’ lending, according to SEC chairperson Teresita Herbosa. The team leading the investigation includes officials from the National Bureau of Investigation (NBI), Department of Trade and Industry (DTI), Local Government Units (LGUs), and other law enforcement agencies.

Most of the five-six lenders do not have any documentary requirements but charge an additional 20 percent interest rate or more.  Herbosa also urged the public to expose any informal lenders to file corresponding charges against.