SEC asks Google’s help in crackdown vs illegal lending apps
By Denise A. Valdez, Reporter
THE Securities and Exchange Commission (SEC) is seeking assistance from Google Philippines in its crackdown against illegal online lending applications.
SEC Commissioner Kelvin Lester K. Lee told reporters Thursday the corporate regulator has scheduled a meeting with Google on Monday to discuss possible courses of action to stop apps of these illegal lenders from sprouting up on Google Play.
Google Play is the official app store for the Android operating system.
“Ang bilis kasi pumasok sa Google Play [It’s so easy to get into Google Play]. That’s why I’m reaching out to Google, I need to talk to them about their app store,” he said on the sidelines of a forum in Makati City.
Mr. Lee said the government wants to better familiarize itself with the requirements of Google in launching mobile applications, and from there discuss how restrictions and standards could be shaped in relation to illegal online lending in the country.
“Marami kasi talaga [There really are plenty of illegal online lenders]. We are forced at the SEC to act proactively,” he said.
The regulator has so far issued cease and desist orders (CDO) against 30 illegal online lending applications, and is looking to issue the same to more operators in the coming days.
“We already issued a cease and desist order against 30 in total. There is another eight. Then after that I have a few more,” Mr. Lee said.
The CDOs cite violations of Republic Act No. 9474 or the Lending Company Regulation Act of 2007, which restricts the operation of a lending business without a permit from the SEC.
Under the law, violators that continue to operate as illegal lenders can be fined between P10,000 to P50,000, face imprisonment of six months to 10 years, or both.
“I’m hoping they’ll cooperate with us, they’ll help us in this,” Mr. Lee said, referring to Google. “Hanapan natin ng paraan sana [I hope we can find a solution] because it’s a battle right now eh. We have so many victims which we at the SEC are trying to help.”
As of last month, the SEC already issued CDOs to the following illegal online lending applications: Cash Whale, Cash 100, Cashafin, CashFlyer, CashMaya, Cashope, Cashwarm, Cashwow, Creditpeso, ET Easy Loan, Peso2Go, Pera, QuickPera, Lendmo Philippines, Binixo, CashBus, Cashcat, Cashuttle, Crazy Loan, Flash Cash, Happy2Peso, Hatulong, MeLoan, MoneyTree Quick Loan, Pera Express, Pera4u, Peramart, PesoLending, QuickPeso and Umbrella.
