Introduction
The rapid rise of online lending applications (commonly called “online lending apps” or “loan apps”) in the Philippines has provided Filipinos with quick access to credit, often without the stringent requirements of traditional banks. However, this convenience has also given birth to numerous illegal lending platforms that engage in predatory practices, harassment, excessive interest rates, and violation of privacy laws.
To protect borrowers, the Securities and Exchange Commission (SEC) is the primary government agency tasked with regulating entities that engage in lending activities as their principal business. Under Republic Act No. 9474 (Lending Company Regulation Act) and its implementing rules, any corporation or entity whose primary purpose is to extend loans to the public must be registered with the SEC as a Lending Company or, in some cases, as a Financing Company.
This article explains, in exhaustive detail, how to verify whether an online lending app is legitimately registered with the SEC, the different types of registration you may encounter, red flags of illegal operators, and the legal consequences for unregistered lending entities.
1. Why SEC Registration Matters for Lending Apps
- Only corporations registered with the SEC as Lending Companies or Financing Companies are legally allowed to engage in lending as their primary business.
- Banks, pawnshops, cooperatives, and microfinance NGOs are regulated by other agencies (BSP, CDA, etc.) and are generally exempt from SEC lending-company registration.
- An app that is not registered with the SEC (and is not a bank or other exempted entity) is operating illegally if its primary revenue comes from lending money to the public.
- Unregistered lenders have no authority to collect interest or penalties beyond what is allowed by law and may be criminally liable under the Lending Company Regulation Act and the Cybercrime Prevention Act.
2. Step-by-Step Guide: How to Verify SEC Registration
Step 1: Visit the Official SEC Website
Go to https://www.sec.gov.ph/
Step 2: Use the SEC Company Registration Verification Portal
- Hover or click on “Search Company/Partnership Names” or directly visit:
https://sec.gov.ph/search-company-partnership-names/
Step 3: Search Using the Exact Legal Name of the Operator
Most lending apps operate under a corporate name that is different from the app’s brand name. You must know the exact registered corporate name of the entity behind the app.
Common examples (as of 2025):
| App Brand Name | Registered SEC Company Name (examples) | SEC Registration No. (sample) |
|---|---|---|
| JuanHand | WeCash Financing Corporation | CS201907623 |
| Cashalo | Paloo Financing, Inc. | CS201801619 |
| UnaCash | Digido Finance Corp. | CS202104255 |
| Tala | Tala Financing Philippines, Inc. | CS201903114 |
| Billease | First Digital Finance Corporation | CS201301354 |
| Atome | Neuroncredit Financing Company, Inc. | CS201901499 |
Important: The brand name on Google Play or App Store is almost never the legal corporate name.
Step 4: Interpret the Search Results
When the company appears, check the following details:
- Status: Must say “Registered” (not “Revoked”, “Suspended”, or “Dissolved”).
- Primary Purpose (in the Articles of Incorporation section): Must explicitly include “to engage in the business of lending money” or “financing/lending company”.
- SEC Registration Number and Certificate of Authority (for lending/financing companies): The SEC issues a separate Certificate of Authority (CA) to operate as a lending or financing company. The company name search will usually display this if it exists.
Step 5: Cross-Check the Official SEC List of Registered Lending and Financing Companies
The SEC periodically publishes an updated list (usually quarterly) in PDF format:
https://www.sec.gov.ph/lending-companies-and-financing-companies-2025/
As of the latest list (Q3 2025), there are approximately 1,800+ registered lending and financing companies, but only a few hundred are behind legitimate online lending apps.
Download the latest list and Ctrl+F the company name.
Step 6: Verify the Certificate of Authority (CA) Number
Registered lending companies are required to display their SEC Registration Number and Certificate of Authority Number prominently in the app (usually in the “About Us”, “Legal”, or footer section). Cross-check this number against the official SEC list.
3. Common Red Flags That the App Is NOT Legally Registered
- The app only shows a “business permit” or “DTI registration” (DTI is for single proprietorships and is insufficient for lending activities).
- The operator is a foreign entity with no Philippine-registered corporation.
- The app refuses to disclose the full corporate name and SEC registration number.
- The company is registered only as an “IT solutions” or “software development” company with no lending purpose in its Articles.
- Interest rates exceed 6% per month (usury threshold for unregistered lenders) or hidden charges make the effective rate unconscionable.
- The app uses aggressive collection tactics (shaming, threats, contacting references without consent).
4. Special Cases and Exemptions
| Entity Type | Regulator | SEC Lending Registration Required? |
|---|---|---|
| Banks & digital banks | BSP | No |
| Pawnshops | BSP | No |
| Money service businesses | BSP | No (if only remittance) |
| Cooperatives | CDA | No |
| Microfinance NGOs | SEC (as non-stock) but exempt from lending-company rules | |
| Entities offering BNPL under the “Buy Now, Pay Later” model that meet certain conditions | May fall under SEC or BSP depending on structure |
If the app claims to be a “partner” of a bank or says it is “regulated by BSP”, verify it on the BSP website (www.bsp.gov.ph → Regulated Entities).
5. What to Do if the App Is Unregistered
- Do not borrow from it.
- If you have an existing loan, you are still obliged to repay the principal, but you are not legally required to pay exorbitant interest or penalties.
- Report the app to:
- SEC Enforcement and Investor Protection Department (eipd@sec.gov.ph)
- SEC Online Lending Complaint Form: https://www.sec.gov.ph/online-complaint-form-for-lending-financing-companies/
- National Privacy Commission (for data privacy violations)
- Philippine National Police Anti-Cybercrime Group
6. Official SEC Contact Information (2025)
- Website: https://www.sec.gov.ph
- Public Assistance Hotline: (02) 8818-5554
- Email for verification requests: cid@sec.gov.ph
- Physical office: Secretariat Bldg., PICC Complex, Roxas Boulevard, Pasay City
Conclusion
Verifying the SEC registration of an online lending app is a simple but critical step that takes only a few minutes. Always insist on seeing the full corporate name, SEC registration number, and Certificate of Authority before downloading any lending app or providing personal information. Borrowing from an unregistered entity exposes you to predatory practices with little legal recourse.
By dealing only with SEC-registered lending companies (or BSP-supervised banks), you protect yourself under Philippine law and contribute to the cleanup of the online lending space that the SEC, BSP, and the Department of Finance have been aggressively pursuing since 2020.