How to Check a Lending Company’s SEC Registration in the Philippines
A practitioner-oriented legal guide (updated to June 2024)
1. Legal Framework at a Glance
| Key Instrument | Core Points You Must Know |
|---|---|
| Republic Act No. 9474 (Lending Company Regulation Act of 2007) | · Requires both (a) SEC corporate registration and (b) a separate Certificate of Authority (CA) before “engaging in the business of lending”. · Sets a ₱1 million minimum paid-up capital for purely Filipino-owned entities (higher for foreign-owned; see § 3). · Prescribes fines of ₱10 000–₱50 000 and/or 6 months-10 years imprisonment for operating without a CA (RA 9474, § 20). |
| SEC Memorandum Circulars (MCs) | · MC 19-2019 and MC 18-2019: advertising rules & disclosure of CA number. · MC 10-2021: registration of online lending platforms (OLPs), mandatory prior approval of any mobile app/website name. · MC 07-2022: unfair collection practices; privacy safeguards. · MC 03-2023: e-FAST migration of corporate and licensing data. |
| Republic Act No. 11765 (Financial Products and Services Consumer Protection Act, 2022) | Gives SEC broader cease-and-desist & asset-freeze powers; offense of “unfair, abusive or deceptive acts” by lenders. |
Important distinction A corporation may be registered with the SEC without being licensed to act as a lending company; the separate CA is what authorizes lending activity.
2. Two (Sometimes Three) SEC Permissions You Must Verify
- Primary Registration – Articles of Incorporation & SEC Company Registration Number (CRN).
- Certificate of Authority to Operate as a Lending Company – uniquely numbered, no expiration but revocable; CA number must appear on every loan document and on all promotional material.
- If the business solicits loans online or through a mobile app: Certificate of Authority for Online Lending Platform under MC 10-2021 (lists the approved brand/app names).
3. Capitalization & Foreign-Ownership Thresholds
| Ownership Mix | Minimum Paid-Up Capital |
|---|---|
| 100 % Filipino | ₱1 000 000 (statutory floor) |
| Up to 40 % foreign | Same floor (constitutional cap on foreign ownership of mass media may catch large digital advertising). |
| > 40 % foreign equity | US $200 000 (≈ ₱11 million) under the Foreign Investment Act, unless qualified as a “small- and medium-sized enterprise” with advanced tech & 15 Filipino employees. |
All figures are statutory minimums—SEC may require more based on risk profile.
4. Where and How to Verify Registration
| Tool / Channel | How to Use It | Typical Output |
|---|---|---|
| SEC e-FAST (Electronic Filing and Submission Tool) | Free public search → “Company Information” | CRN, date of registration, status (active/revoked). |
| SEC CheckApp (Android/iOS, launched 2022) | Search by company or OLP name | Shows CA number and whether “duly licensed lending company/OLP”. |
| SMS: text CHECK <Company data-preserve-html-node="true" Name> to 22565 (₱2.50) | Works for short names; exact spelling helps | “Licensed Lending Company” or “NO RECORD/REVOKED”. |
| SEC Express One-Stop / email (express@sec.gov.ph) | For certified true copies | Scanned CA within 3 working days (fees apply). |
| SEC Advisories webpage & social media (@SECPhilippines) | Browse “Advisories” tab | Lists unregistered entities, revoked CAs, cease-and-desist orders. |
| On-site: SEC Head Office—EDSA, Mandaluyong; or Extension Offices nationwide | Request at Public Assistance/Investor Protection Desk | Photocopies of AOI and CA for nominal fees. |
If the name does not exactly match, ask the lender for its full corporate name and CA number—both must appear on its official certificate and contracts.
5. Step-by-Step Verification Workflow
- Name Search on e-FAST → confirm exact corporate name & CRN.
- Cross-check CA – same corporate name, plus a valid CA number and signature of the SEC Corporate Governance and Finance Department (CGFD) Director.
- If the lender is online-only → run the OLP/brand name through SEC CheckApp & MC 10-2021 list.
- Scan SEC Advisories for revocation, cease-and-desist, or investor alerts.
- Validate Physical Documents – the CA is printed on security paper with a QR code (post-2021 issuances).
- Look for Mandatory Disclosures – under MC 19-2019 an ad or contract must show: company name, SEC CA number, principal office, email/phone, interest rate & fees. Omission is a red flag.
- Keep Screenshots / Certified Copies – useful if you later need to file a complaint.
6. Red Flags Suggesting an Unlicensed Lender
- CA number is missing, unreadable, or belongs to a different corporation.
- Lender refuses to show its CA, claims “pending renewal” (CAs do not expire).
- Company name on e-FAST is “revoked” or “dissolved”.
- Interest rates above 6 % per month disguised as “service fee/processing fee”.
- Intimidation or contact-harassment (threats, use of phonebook scraping)—explicitly banned by MC 07-2022 and RA 11765.
- App not listed in MC 10-2021 roster but still downloadable.
7. Consequences of Operating Without, or in Violation of, a CA
| Violation | Possible Sanctions |
|---|---|
| Operating sans CA | RA 9474 § 20: ₱10 k–₱50 k fine and/or 6 months–10 years jail; SEC cease-and-desist; asset freeze (RA 11765). |
| Misrepresentation (fake CA) | Criminal fraud, falsification of public documents; closure of premises; takedown of website/app. |
| Unfair collection / privacy breaches | ₱25 k–₱1 million per act under MC 07-2022; NPC administrative fines; PNP Anti-Cybercrime Group cases. |
| Continuing contempt of SEC orders | ₱30 k initial fine + ₱1 k/day until complied. |
8. Consumer Remedies and Enforcement Channels
- SEC Enforcement and Investor Protection Department (EIPD) Email: epd@sec.gov.ph Hotline: (02) 8818-6047
- National Privacy Commission (data-scraping, contact-harassment)
- Bangko Sentral ng Pilipinas – for digital payment issues (if lender uses e-wallet channels).
- PNP / NBI – for threats/coercion under the Anti-Cybercrime Act or Revised Penal Code.
- Civil action – file in trial court to declare the loan void and recover excessive interest; courts routinely strike down rates >24 % p.a. as unconscionable.
9. Frequently Asked Questions
| Q | A |
|---|---|
| Is a financing company the same as a lending company? | No. Financing Cos. (RA 8556) finance businesses via installment/lease; Lending Cos. (RA 9474) make cash loans to consumers/SMEs. Each needs a different CA. |
| Do sole proprietorships need a CA? | They cannot obtain one; only corporations may operate a lending company under RA 9474. |
| Can a foreign corporation lend in the Philippines via an app only? | Yes, but it must incorporate a Philippine entity, meet the higher paid-up capital, secure both CA and OLP approval, and comply with the Anti-Dummy Law. |
| Does a CA expire? | No expiry, but SEC may revoke or suspend it for violations. |
| How long does CA processing take? | 2-4 weeks after complete submissions under the SEC’s 2024 schedule, plus name reservation and GIS filing. |
10. Practical Checklist Before Borrowing
- □ Search corporate name on e-FAST.
- □ Ask for a photocopy or photo of the CA; verify seal, QR code, signing officer.
- □ Cross-check the app/brand in SEC CheckApp.
- □ Look up lender in SEC Advisories; avoid entities on the watch-list.
- □ Read the loan agreement: interest, penalties, data-privacy clause, collection practice statement.
- □ Keep evidence (screenshots, SMS, contracts).
11. Conclusion
Doing a five-minute SEC registration check can spare you years of harassment, ballooning “processing fees”, or void contracts. In the Philippines, legitimate lending companies proudly display their Certificate of Authority and adhere to the disclosure, privacy, and collection rules issued by the SEC. If the entity’s name—or its flashy mobile app—doesn’t appear in any of the SEC’s public databases, walk away and report the matter.
This article provides general legal information. For specific situations, consult a Philippine lawyer or directly contact the SEC.
Always verify, always document, and never assume “registered” means “licensed.” Your due diligence is your first line of defense.