MANILA-- The Securities and Exchange Commission (SEC) has suspended 84 lending companies for failing to obtain a license for the conduct of lending business.
"The Commission is one with the President (Duterte) in adopting a tough stance against illegal lending that is why it is pursuing with much vigor all those engaged in it," said Justina Callangan, Director of the SEC's Corporate Governance and Finance Department.
The SEC is the lead agency in the administration of Republic Act (RA) No. 9474, or the Lending Company Regulation Act of 2007, which requires all persons and entities engaged in lending activity to secure a certificate of authority (CA).
Callangan stressed such entities have been given more than sufficient time to comply with the law, hence, their continued noncompliance warrants their suspension.
Of the suspended lending companies, 66 of them are corporations while 18 are partnerships.
These are located in the National Capital Region and nearby regions in Laguna, Cavite, Pampanga, Batangas, Cabanatuan City and Nueva Ecija.
These 84 companies shall be suspended for 60 days and if they still do not respond within the suspension period, proceedings for revocation of their certificates of registration shall immediately follow.
Aside from suspension, a fine of not less than Php10,000 or imprisonment of not less than six months but not more than 10 years or both, await those who violate the law through, among others, failure to obtain a license to engage in lending.
Source: Philippines News Agency