SEC revokes KingABC loan company license – Manila bulletin
The Securities and Exchange Commission (SEC) has declared the revocation of KingABC Lending Corporation’s Certificate of Authority (CA) to operate a lending company final and binding due to unfair debt collection practices.
In a resolution, the SEC’s Corporate Governance and Finance Department (CGFD) dismissed the petition for reconsideration filed by KingABC – operator of the online lending platforms Pondo Loan, Start Loan, Green Loan and Loan Club – for lack of merit.
The resolution became final and enforceable after KingABC failed to file an appeal within the allotted time.
“The Ministry reiterates that the lending activity is imbued with public interest. As such, the Commission is mandated to ensure that only credit companies that seriously abide by laws, rules and regulations are allowed to operate, ”the resolution said.
The CGFD issued the revocation order on June 7 after finding that KingABC had committed 15 violations of SEC Circular No. 18, Series of 2019 (SEC MC 18), which provides for the prohibition of unfair practices of debt collection from finance companies and loan companies. .
KingABC has threatened borrowers with shame on social media by posting their names as scammers and contacting people on the borrower’s contact list, although they were not named as co-creators or guarantors.
He also used obscenities, slurs or profane language in his debt collection, and threatened to sue borrowers on fabricated legal grounds, according to CGFD.
The CGFD has previously penalized KingABC for its first and second SEC MC 18 violations. A third violation merits the imposition of a fine, suspension or revocation of the company’s certification authority, depending on the facts, the circumstances and seriousness of the case. .
In addition to KingABC’s 15 violations, CGFD noted that 53 other complaints were filed against the company for its debt collection practices.
SEC MC 18 came into effect on September 8, 2019, as part of the Commission’s response to several complaints of unreasonable, abusive and unfair practices used by loan and finance companies to collect debt from borrowers.
In its request for reconsideration, KingABC argued that the 15 complaints contained only allegations without evidence and that the volume of complaints in itself was not sufficient to justify the revocation of its certification authority, given that the SEC ™ 18 requires proof of these allegations.
The CGFD, however, maintained that the evidence on the record more than adequately supported the revocation of the CA from KingABC.
The department further pointed out that, during its investigation, KingABC itself admitted that its agents had committed “‘unlawful and unauthorized’ fault and” unfair fault “towards its borrowers.
“A review of all the screenshots of the messages submitted by the 15 complainants, including the 53 others who also filed complaints against the respondents, reveals some commonalities and recurring patterns, including the substance of the threats and the construction of the said messages’ sentence, August 2. read resolution.
He added that, “To a reasonable mind, all of this evidence proves that the Respondent committed 15 violations of the SEC MC 18. Thus, it was not possible for the CGFD to find the Respondent guilty of violating SEC MC 18 and imposes the penalty of revocation of his license.
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