How to Check if an Online Lending Company Is Registered With the SEC in the Philippines

The rapid growth of online lending platforms in the Philippines has provided millions of Filipinos with quick access to credit, but it has also created fertile ground for predatory, illegal lenders. Unregistered online lending companies routinely charge effective interest rates exceeding 500% per annum, use harassment and shaming tactics, and operate completely outside the law. Borrowing from an unregistered entity exposes the borrower to virtually no legal protection and, in many cases, constitutes dealing with criminal syndicates.

The Securities and Exchange Commission (SEC) is the sole government agency authorized to regulate and supervise non-bank lending and financing companies, including all online lending platforms, under Republic Act No. 9474 (Lending Company Regulation Act of 2007), Republic Act No. 8556 (Financing Company Act of 1998 as amended), and SEC Memorandum Circular No. 19, series of 2019 (Regulatory Framework and Guidelines for Online Lending Platforms Operated by Lending Companies and Financing Companies).

Any entity—whether it operates through a mobile app, website, Facebook page, or SMS—that extends loans to the public must have both:

1. SEC Certificate of Incorporation (as a corporation with lending/financing in its primary or secondary purpose), and
2. SEC Certificate of Authority (CA) to operate as a lending or financing company.

Operating without a CA is a criminal offense punishable by imprisonment of up to seven (7) years and fines of up to ₱2,000,000 under Section 17 of RA 9474.

Step-by-Step Guide: How to Verify Legitimacy

Step 1: Check the SEC Official Lists of Registered Entities

The SEC maintains and regularly updates the following public lists on its website (https://www.sec.gov.ph):

Direct links (as of December 2025):

• List of Lending Companies with Certificate of Authority
  https://www.sec.gov.ph/lending-companies-2025/list-of-lending-companies-with-certificate-of-authority/

• List of Financing Companies with Certificate of Authority
  https://www.sec.gov.ph/financing-companies-2025/list-of-financing-companies-with-certificate-of-authority/

• List of Registered Online Lending Platforms (OLPs)
  https://www.sec.gov.ph/online-lending-platforms-2025/

These lists are usually in Excel format and contain the company name, SEC registration number, Certificate of Authority number, date issued, and head office address.

Action:
Download the latest list and press Ctrl+F to search for the exact company name or trade name of the app (e.g., “JuanHand”, “Cashalo”, “UnaCash”, “Digido”, etc.).
If the company does NOT appear on any of these lists → it is illegal and unregistered.

Step 2: Verify Corporate Registration via SEC eSPARC / SEC i-View

Even if a company is incorporated, it may not have authority to lend money.

Go to: https://crs.sec.gov.ph/ or https://www.sec.gov.ph/company-verification/

Enter the exact company name or SEC registration number (usually in the format CS202312345 or similar).

The system will show:

• Date of incorporation
• Primary/secondary purpose (must include “lending” or “financing”)
• Status (Active, Suspended, Revoked)

A company that is incorporated but whose purpose does NOT include lending/financing is illegally engaged in lending.

Step 3: Check the SEC Advisory Page for Illegal Lenders

The SEC regularly publishes advisories and cease-and-desist orders against illegal online lenders.

Link: https://www.sec.gov.ph/advisories-2025/ or https://www.sec.gov.ph/warnings/

Search for the app name. If it appears in any advisory or CDO list, it is confirmed illegal.

Step 4: Examine the App/Website Disclosures (Red Flags)

Legitimate lenders are required by SEC MC No. 19-2019 to prominently display the following on their app and website:

• Full corporate name
• SEC Registration Number (e.g., CS201912345)
• Certificate of Authority Number (e.g., CA No. 1234)
• Complete office address (not just a Gmail or Facebook page)
• Contact numbers and email monitored by the company
• Disclosure of effective interest rate and all fees (must comply with SEC’s 6-6-6 guideline for short-term loans: maximum 6% per month interest, 6 months maximum term for certain products, etc.)

Common red flags of illegal lenders:

• Displays only a “BSP-registered operator” badge but no SEC CA (many try to mislead borrowers by showing BSP registration of a third-party operator)
• No SEC registration number or CA number anywhere
• Office address is in China, Cambodia, or a virtual office
• Uses “5-minute approval, no documents needed” marketing
• Requires access to contacts, gallery, SMS upon installation
• Threatens to shame you to your contacts if you delay payment

Step 5: Cross-Check with the SEC’s Official Verification Hotline/Email

If you are still unsure, send an email to:

sec.lcfd@crs.sec.gov.ph (Lending Companies and Financing Companies Division)
or call (02) 8818-CEBU (2328) loc. 321 or 322

Provide the full company name and app name. The SEC responds within 1–3 business days with an official verification.

Legal Consequences of Dealing with Unregistered Lenders

1. The loan contract is void ab initio for being contrary to law (Article 1410, Civil Code; SEC vs. Prosperity.Com, Inc., G.R. No. 164197).
2. The borrower is not obligated to pay interest or penalties; only the principal may be recovered, and even then only through proper judicial process (no harassment allowed).
3. Unregistered lenders who harass borrowers may be charged with:
   • Unjust vexation (Art. 287, Revised Penal Code)
   • Grave coercion, threats, libel
   • Violation of RA 10175 (Cybercrime Prevention Act)
   • Violation of RA 8484 (Access Devices Regulation Act) if they misuse personal data
   • RA 11765 (Financial Products and Services Consumer Protection Act) – penalties up to ₱5 million

The Supreme Court in a long line of cases (Ligh v. Eurocredit, G.R. No. 237027; A.M. No. P-21-413) has consistently ruled that collection practices involving shaming and harassment are illegal and may be met with criminal and administrative complaints.

How to Report an Illegal Online Lender

File a complaint with:

1. SEC Enforcement and Investor Protection Department
   Email: epd@sec.gov.ph
   Online complaint form: https://www.sec.gov.ph/complaints/

2. National Privacy Commission (if they accessed your contacts)
   https://privacy.gov.ph/complaint/

3. PNP Anti-Cybercrime Group
   Hotline: 723-0401 loc. 7492

4. NBI Cybercrime Division
   Hotline: 8523-8231 loc. 5401

Attach screenshots of the app, loan agreement, harassment messages, and payment receipts. The SEC and law enforcement agencies have been very aggressive since 2023 in raiding illegal lending syndicates.

Summary Checklist Before Borrowing

✓ Appears in the latest SEC List of Lending/Financing Companies with CA
✓ Appears in the SEC List of Registered Online Lending Platforms
✓ Displays SEC CA number clearly in the app/website
✓ Corporate name matches the SEC-registered name
✓ Effective interest rate is reasonable and disclosed upfront
✗ No SEC registration or CA number anywhere → illegal
✗ Only shows BSP registration → still illegal for lending operations
✗ Requires contacts/gallery access → almost always illegal

Borrowing from an unregistered online lending company is not just risky—it is borrowing from a criminal enterprise with zero legal protection. Always verify with the SEC first. One minute of verification can save you years of harassment and financial ruin.