Manila: The Securities and Exchange Commission (SEC) has fined HC Consumer Finance Philippines Inc., commonly known as Home Credit, PHP50,000 for engaging in unfair debt collection practices by targeting individuals not listed as guarantors or comakers in loan agreements.

According to Philippines News Agency, the SEC's Financing and Lending Companies Department found Home Credit liable for violating SEC Memorandum Circular No. 18, series of 2019, and the SEC Rules and Regulations implementing the Financial Products and Services Consumer Protection Act (FCPA) of 2022. The decision was based on a complaint from a borrower who reported that Home Credit used a third-party residence occupied by individuals not declared as guarantors or comakers as a venue for collection efforts.

The complaint further stated that Home Credit continued its collection activities at the third-party location despite receiving a written objection from the borrower. The SEC noted that using a third-party residence for collection purposes poses a significant risk of exposing the borrower's financial issues to individuals with no stake in the transaction, which is against the protections intended by the FCPA, MC 18, and MC 5.

The SEC's order emphasized that HC Consumer Finance overstepped legal boundaries in its collection practices, which are designed to protect consumers' privacy and financial information. In addition to the financial penalty, the SEC has instructed Home Credit to review and amend its collection policies and procedures and to submit a compliance report to the commission.