SEC Denies Motion to Lift the Cease and Desist Order against PESKOKWENTO
The Securities and Exchange Commission (SEC) issued a Cease and Desist Order (CDO) on March 22, 2022 against the online lending operator/application, PESOKWENTO, for having violated Republic Act No. 9474 or the “Lending Company Regulation Act of 2007” and Memorandum Circular Nos. 18 and 19, series of 2019 issued by the Commission.
Based on substantial evidence, the SEC found that online lending operators/applications, including PESOKWENTO, were engaged in lending and/or financing business without being a corporation, and/or operating without the required Certificate of of Authority, and/or having violated the relevant regulations issued by the Commission.
The law and relevant regulations prohibit unfair debt collection practices and require lending and financing companies to fully disclose in their advertisements and platforms particular information and to report all its existing online lending platforms.
The Commission also found that PESOKWENTO employed unfair and abusive debt collection practices which are prohibited under Memorandum Circular No. 18 by threatening and harassing borrowers to exact payment. It also made misrepresentations and imposed unreasonable terms and conditions. Thus, the SEC denied the lifting of the CDO.
The full case can be found here.