The rise of Financial Technology (FinTech) has revolutionized access to credit in the Philippines. However, the convenience of "one-tap" loans has also paved the way for predatory lenders and unlicensed entities. For Filipino borrowers, the first line of defense against harassment and debt traps is ensuring that a Lending or Financing Company is duly registered with the Securities and Exchange Commission (SEC).

Under Philippine law, specifically the Lending Company Regulation Act of 2007 (R.A. 9474) and the Financing Company Act of 1998 (R.A. 8556), no entity shall operate as a lender without valid registration.

1. Understanding the Dual Requirement

A legitimate online lending app (OLA) must possess two distinct certifications from the SEC. Being "registered" as a corporation is not enough to legally lend money.

Certificate of Incorporation: This proves the entity is a registered corporation in the Philippines.
Certificate of Authority (CA): This is the specific license granted by the SEC allowing the corporation to operate as a lending or financing company. An OLA without a CA is operating illegally.

2. Step-by-Step Verification Process

To verify an app’s legitimacy, follow these official channels provided by the SEC:

A. Check the Official SEC Lists

The SEC Corporate Governance and Finance Department regularly updates lists of licensed entities.

Visit the SEC Official Website.
Navigate to the "Lending & Financing Companies" section under the "Public Information" or "Lending" tabs.
Cross-reference the app name and its registered corporate name against the following lists:

List of Lending Companies with Certificate of Authority
List of Financing Companies with Certificate of Authority

B. Identify the "Registered Corporate Name"

Often, the name of the app (e.g., "FastCash") is different from the registered company name (e.g., "Sample Lending Corp.").

Open the app’s "About Us" section or the bottom of their official website.
Legitimate apps are required by SEC Memorandum Circular No. 19 (Series of 2019) to display their Corporate Name and Certificate of Authority (CA) Number on their platform and in all advertising materials.

C. Use the SEC Check App

The SEC has launched mobile tools and online databases where users can type in the company name or CA number to verify status in real-time.

3. Red Flags of Unlicensed Lenders

If you cannot find the company in the SEC database, or if they exhibit the following behaviors, proceed with extreme caution:

No CA Number Displayed: Failure to prominently show the Certificate of Authority number on the app or website.
Invasive Permissions: Asking for access to your entire contact list, social media accounts, or gallery (often used for "debt shaming").
Anonymous Ownership: Lack of a physical office address or legitimate corporate officers listed.
Predatory Interest Rates: While the Philippines has a ceiling on interest rates (via BSP Circular No. 1133), illegal lenders often exceed these or hide fees in "service charges."

4. Legal Protections Against Harassment

Even for SEC-registered companies, certain collection practices are prohibited. SEC Memorandum Circular No. 18 (Series of 2019) bans unfair debt collection practices, such as:

Using threats of violence or profane language.
Contacting people in the borrower's contact list who are not co-makers or guarantors.
Disclosing the borrower's name as a "delinquent" publicly.

5. What to Do if the App is Unlicensed

If you discover an OLA is operating without a Certificate of Authority:

Cease Transactions: Do not provide further personal information or funds.
Report to the SEC: File a formal complaint with the SEC Enforcement and Investor Protection Department (EIPD) via email at epd@sec.gov.ph.
National Privacy Commission (NPC): If the app has leaked your data or contacted your friends/family, file a complaint for violation of the Data Privacy Act of 2012.

Legal Tip: Always take screenshots of the app’s interface, their advertised CA number (if any), and any predatory communications. These serve as vital evidence in administrative or criminal proceedings.

Would you like me to draft a formal complaint letter template that you can use to report an unlicensed lending app to the SEC?