In the Philippines, borrowing money has become easier than ever, but so has falling victim to illegal lenders. Quezon City, with its dense population and countless online lending apps and sidewalk financiers, has become a hotspot for both legitimate financing companies and predatory scams. Knowing how to verify if a lending company is legitimate and properly registered with the Securities and Exchange Commission (SEC) can save you from harassment, exorbitant interest rates, and even criminal liability for dealing with illegal entities.

This article explains everything you need to know under Philippine law as of November 2025.

Legal Framework Governing Lending Companies

Republic Act No. 9474 (Lending Company Regulation Act of 2007) and its Implementing Rules and Regulations (SEC Memorandum Circular No. 18, series of 2019, as amended)
Any corporation that engages in granting loans from its own capital or funds sourced from not more than nineteen (19) persons is classified as a “lending company” and must secure a Certificate of Authority (CA) from the SEC in addition to its regular corporate registration.
Republic Act No. 8556 (Financing Company Act of 1998, as amended)
Companies that borrow funds from twenty (20) or more lenders through issuances of debt instruments (e.g., bonds, commercial papers) are classified as “financing companies” and are also regulated by the SEC.
Entities NOT under SEC jurisdiction
- Banks, quasi-banks, trust entities, and non-stock savings and loan associations → Bangko Sentral ng Pilipinas (BSP)
- Pawnshops → BSP
- Cooperatives → Cooperative Development Authority (CDA)
- Insurance companies → Insurance Commission

If the lender you are dealing with in Quezon City is none of the above, it must be SEC-registered with a valid Certificate of Authority.

Operating without a Certificate of Authority is a criminal offense punishable by imprisonment of 1 to 10 years and fines of ₱200,000 to ₱2,000,000 under Section 12 of RA 9474.

Step-by-Step Guide: How to Verify Legitimacy

Step 1: Ask the Lender for These Documents (They Are Required by Law to Provide Them Upon Request)

A legitimate lending company must show you:

SEC Certificate of Registration (with SEC registration number)
SEC Certificate of Authority to Operate as a Lending/Financing Company (this is separate and more important than the basic corporate registration)
Latest General Information Sheet (GIS) stamped received by SEC
Business Permit/Mayor’s Permit from Quezon City Hall (for physical branches)
BIR Certificate of Registration (Form 2303)

If they refuse or give excuses (“Nasa head office pa,” “Online kami kasi, wala ’yan”), walk away.

Step 2: Verify Online Through Official SEC Portals (All Free)

A. SEC Company Search (for basic corporate registration)
Go to: https://secexpress.ph/ or https://www.sec.gov.ph/company-search/
Search the exact company name.
Legitimate companies will appear with their SEC registration number, date of incorporation, and registered address.

Note: Having a basic SEC registration is NOT enough. Many scam companies register as “consultancy” or “trading” corporations but illegally engage in lending.

B. Official List of Registered Lending and Financing Companies
Direct link (updated monthly):
https://www.sec.gov.ph/lending-companies-and-financing-companies/

Download the latest PDF lists:

List of Lending Companies with Certificate of Authority
List of Financing Companies with Certificate of Authority
List of Online Lending Platforms (OLPs) with Certificate of Authority (very important for apps)

As of the latest SEC update in November 2025, there are approximately 3,800+ registered lending companies nationwide, but only around 150–200 authorized online lending platforms.

C. SEC i-Register (for verification of secondary licenses)
https://iregister.sec.gov.ph/
Search by company name or SEC registration number to confirm if they have a valid CA.

D. Check SEC Advisories and Cease & Desist Orders
https://www.sec.gov.ph/advisories-2025/ or https://www.sec.gov.ph/warnings/
Search the company name or app name. Thousands of entities are listed here, including popular apps that were shut down (e.g., Cashalo, JuanHand, UnaCash, etc., have been flagged in past years for various violations).

Step 3: Cross-Check with Other Government Agencies

Quezon City Business Permit
For physical branches, visit https://qceservices.quezoncity.gov.ph/ or go to Quezon City Hall Business Permits and Licensing Department (BPLD). Search the business name to confirm they have a valid mayor’s permit.
Department of Trade and Industry (DTI)
If operating under a single proprietorship name, check https://bnrs.dti.gov.ph/
BIR Registration
Ask for their BIR COR and verify the TIN at https://www.bir.gov.ph/ (though BIR does not have a public search portal, you can call BIR Revenue District Office 39 – Quezon City).

Step 4: Red Flags That the Lender Is Illegal (Even If They Claim To Be “SEC-Registered”)

Charges processing fees, notary fees, or “advance interest” before releasing the loan
Interest rate exceeds 6% per month without clear disclosure (while there is no longer a usury law, SEC considers rates above certain thresholds as unconscionable and may revoke CA)
Requires access to your phone contacts, SMS, or gallery (common in illegal 5-6 or online lending apps)
Uses harassment, shaming, or threats of criminal cases for non-payment
No physical office or the address is fake/residential
Uses generic app names like “Fast Peso,” “Quick Loan,” “CashNow” without a registered corporate name
Advertises on Facebook Marketplace or Carousell with “No collateral, 1-hour release”

All these practices are prohibited under SEC Memorandum Circular No. 19, series of 2019 (Rules on Online Lending Platforms) and the Data Privacy Act.

What To Do If You Discover the Lender Is Unregistered

File a complaint immediately with the SEC Enforcement and Investor Protection Department (EIPD):
Email: epd@sec.gov.ph
Hotline: (02) 8818-6337
Online complaint form: https://www.sec.gov.ph/complaints/
File with the National Bureau of Investigation (NBI) Cybercrime Division if there is online harassment or data privacy violation.
File with the Philippine National Police (PNP) if there are threats or physical intimidation.
If you already borrowed, you are still legally obligated to pay the principal, but you can refuse to pay exorbitant interest and file for violation of RA 9474.

The Supreme Court has repeatedly ruled (e.g., G.R. No. 258646, 2023) that contracts with unregistered lending companies are void, and borrowers may seek refund of excessive payments.

Final Checklist Before Borrowing in Quezon City (2025)

✓ Company appears in the latest SEC List of Lending Companies with CA
✓ Has valid Quezon City Mayor’s Permit (for physical offices)
✓ Provides full disclosure of effective interest rate, fees, and penalties (Truth in Lending Act compliance)
✓ Does not collect upfront fees
✓ Uses only professional collection methods
✓ Has a Data Privacy Notice and is registered with the National Privacy Commission

Protect yourself. One minute of verification can save you years of harassment and financial ruin. Always remember: If it seems too good to be true (same-day release, no documents required, very high loan amount), it almost certainly is illegal.