Introduction

Lending companies play a vital role in broadening access to credit for individuals and small businesses in the Philippines. Because they deal with the public’s money, they are strictly regulated by the Securities and Exchange Commission (SEC). Making sure a lender is properly registered—and holds the required Certificate of Authority (CA)—protects borrowers from abusive practices, excessive interest, privacy violations and outright scams.

This article gives a comprehensive, Philippine‑specific guide to verifying a lender’s SEC registration, explaining the legal basis, the documents and databases you should check, the red flags to watch for, and the remedies available if you encounter an unlicensed operator.

1. Legal Framework

Instrument	Key Points for Lending Companies
Republic Act No. 9474 (Lending Company Regulation Act of 2007)	Establishes the rules for organization, capitalization, operations, and supervision of lending companies (LCs).
SEC Implementing Rules & Regulations (IRR) • SEC Memorandum Circular (MC) No. 2‑2016 • MC No. 9‑2019	Flesh out procedural requirements, CA renewal, branch licensing, reporting.
Revised Corporation Code (RA 11232)	All LCs must incorporate as stock corporations.
BSP & NPC regulations	Cover anti‑money laundering (AML), consumer protection, and data privacy obligations.
MC No. 19‑2019 & 10‑2021 (Online Lending Platforms Rules)	Additional license layer for lenders that transact or advertise online or via mobile apps.

Distinction: Financing companies are governed by RA 8556 and can extend larger, higher‑risk credit (e.g., project finance). Lending companies under RA 9474 typically offer small, short‑term consumer or SME loans. The verification steps below apply to both, but the capital, ownership and reporting thresholds differ.

2. Why Verification Matters

Legality & enforceability – A loan contract issued by an unlicensed entity may be void or unenforceable in court.
Consumer safeguards – Registered lenders must follow caps on interest, truth‑in‑lending disclosures, collection rules, and submit to SEC audits.
Data privacy – Rogue online lenders often harvest full contact lists and use harassment; SEC‑licensed platforms must limit data collection and follow National Privacy Commission (NPC) rules.
Remedies & penalties – Operating without a CA risks ₱10,000 – ₱50,000 fine per day of violation and/or 6 months – 10 years imprisonment (RA 9474 § 23), plus SEC cease‑and‑desist orders, asset freezes, and app‑store takedowns.

3. Where and How to Check Registration

3.1 SEC Public Databases

SEC Company Registration System (CRS) / eSPARC Search by corporate name or SEC Reg. No. You will see basic incorporation data and whether the entity is active or revoked.
List of Registered Lending & Financing Companies PDF/Excel lists updated monthly by the Corporate Governance & Finance Department (CGFD).
- Column headings usually include Company Name, SEC Registration No., Certificate of Authority No., Date Issued, and Status (Active, Expired, Revoked, or CDO‑issued).
- A separate list covers online lending platforms (OLPs) that have obtained the secondary OLP license.
SEC CheckApp / Online Verification Portal A mobile‑friendly tool that lets you input the CA number and instantly verify validity and expiration. It is particularly useful when a lender shows you a physical certificate.
SEC Express Inquiry Service For a small fee, you can order scanned copies of the Articles of Incorporation and General Information Sheet to confirm directors, capital and Filipino‑ownership compliance (≥ 60 % domestic).

Tip: Names in trade ads often differ slightly from the legal corporate name. Use distinctive words (e.g., “JuanHand” ➜ search WeFund Lending Corp.).

3.2 Physical Documents a Legitimate Lender Must Show

Document	Must‑Have Features
Certificate of Incorporation	Blue‑green SEC security paper, indicates “Primary Purpose: To operate as a Lending Company …”
Certificate of Authority to Operate a Lending Company	Gold SEC seal, displays CA No., issuance date and QR code or control number.
Branch CA (if applicable)	Each branch or extension office must have its own displayed permit.
Secondary License for OLPs	Separate certificate (MC 19‑2019) with “License to Operate an Online Lending Platform.”

All certificates must be conspicuously posted at the business premises and on their website or mobile app splash screen (MC 10‑2021).

4. Step‑by‑Step Online Verification Guide (5 Minutes)

Get the full corporate name from the loan offer, website footer, or certificate photo.
Search in CRS/eSPARC
- Status should read “Registered (Active)”.
- Note the SEC Registration No. (format: CS2xxx‑xxxxxx).
Open the CGFD list (latest edition) and use your browser’s Find function:
- Confirm the exact same corporate name and registration number appear.
- Check that CA Status = Active.
Optional double‑check via SEC CheckApp: enter the CA No..
If you can’t locate the entity or if the status is Revoked/Expired/Ceased, do not proceed with the loan and report to SEC Enforcement and Investor Protection Department (EIPD).

5. Common Red Flags

Red Flag	Why It’s Suspicious
Lender refuses to disclose SEC documents or only shows DTI business name registration.	SEC incorporation & CA are mandatory; DTI registration alone is insufficient.
Uses generic or misleading names (“Cash Credit PH”) with no corporate suffix (Corp./Inc.).	Legitimate corporations must use proper suffixes.
Social‑media‑only presence, offers loans via personal accounts or GCash to “agent” wallets.	Violates KYC, AML, and disclosure rules.
Interest > 6 % per month without written computation.	Indicative of loan‑shark practices barred by RA 9474 § 7(b).
Harassing collection calls to entire contact list within days of default.	Breach of SEC MC 18‑2019 and Data Privacy Act.

6. What to Do If You Suspect an Unregistered or Abusive Lender

Document everything – screenshots of chats, app pages, payment slips.
File a complaint with SEC EIPD: complaints@sec.gov.ph, (02) 8818‑0921.
Report data‑privacy violations to the NPC: complaints@privacy.gov.ph.
For threats or cyber‑harassment, contact PNP Anti‑Cybercrime Group or NBI CCD.
Warn others through SEC’s online tip form; repeat offenders are swiftly issued Cease & Desist Orders and delisted from app stores.

7. FAQs

Question	Answer
Does SEC registration guarantee fair terms?	Not automatically, but it imposes caps and disclosure obligations. Always read the loan agreement.
How much capital must a lending company have?	₱1 million minimum paid‑up capital (RA 9474 § 6), higher for financing companies.
How often is the CA renewed?	Old CAs carried five‑year validity; under MC 9‑2019, new CAs have perpetual validity provided the company stays compliant and pays annual supervision fees.
Can foreign‑owned lenders operate?	Yes, up to 40 % foreign equity; 60 % of voting stock must remain Filipino.
Is an online lending app automatically covered?	Yes. Without the separate OLP license, the app is illegal even if the underlying company has a CA.

8. Key Takeaways & Best Practices

Never rely on brand names or flashy apps—verify the corporate entity and its Certificate of Authority.
Cross‑check multiple SEC sources (CRS/eSPARC, CGFD list, CheckApp). It takes only a few minutes.
Scrutinize interest, fees, and data‑access permissions before signing or installing an app.
When in doubt, walk away—unregistered lenders disappear quickly, leaving borrowers without legal remedies.
Report suspicious operators promptly; SEC enforcement relies on consumer tips to issue swift shut‑downs.

Conclusion

Checking a lending company’s SEC registration in the Philippines is straightforward—and essential. By understanding the legal framework, knowing which public records to examine, and recognizing warning signs, borrowers can protect themselves from predatory or fraudulent schemes while encouraging responsible lending practices in the market.

This article is for general information only and does not constitute legal advice. For formal guidance or complex situations, consult the Securities and Exchange Commission or a qualified Philippine counsel.