Metro Manila (CNN Philippines, July 4) — The Securities and Exchange Commission has revoked the license of a company running several lending platforms over unfair debt collection practices.
“The SEC Corporate Governance and Finance Department (CGFD) found KingABC threatened borrowers with shaming on social media by publishing their names as scammers and contacting people in the borrowers’ contact list despite not being named as co-makers or guarantors,” said the SEC in statement Sunday.
The SEC said KingABC runs online lending platforms Pondo Loan, Start Loan, Green Loan, and Loan Club.
The agency also said the company “also used obscenities, insults, or profane language in its debt collection, and threatened to sue borrowers based on made-up legal bases.”
In a June 7 order, the CGFD found KingABC committed 15 violations of SEC Memorandum Circular No. 18, Series of 2019 which provides for the Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.
KingABC was previously penalized twice under SEC MC 18.
According to the CGFD, a third violation would merit either fine, suspension, or revocation of a company’s certificate of authority.
“It is likewise clear that at this point, the revocation of Respondent’s CA is not merely appropriate, but rather necessitated by the gravity and number of its offenses,” the CGFD said.
It was also noted that apart from the 15 violations, 53 other complains concerning debt collection practices were also filed.
“Even more telling is the fact that subsequent to the issuance of the Formal Charge, the abusive collection practices of the Respondent only became worse and more hostile based on the evidence submitted by the complainants. The Department noted messages filled with death threats, profanities, and other obnoxious and reprehensible language.”
