How to Check SEC Registration of Lending Corporations in the Philippines A comprehensive legal guide for consumers, entrepreneurs, and compliance officers
1. Why Verifying Matters
Philippine law treats lending as a regulated financial service. Only entities that (a) are duly incorporated as a stock corporation under the Revised Corporation Code (Republic Act No. 11232) and (b) hold a Certificate of Authority (CA) from the Securities and Exchange Commission may “engage in the business of granting loans from their own capital funds” under the Lending Company Regulation Act of 2007 (Republic Act No. 9474). Doing business with, investing in, or working for an unregistered lender exposes you to:
| Risk | Legal basis | Practical effect |
|---|---|---|
| Closure & asset freeze | R.A. 9474 § 12; SEC EIPD orders | Borrowers lose protection, employees lose jobs |
| Fines ₱10 000 – ₱50 000 and/or 6 mos – 10 yrs imprisonment | R.A. 9474 § 12 | Criminal liability for directors, officers, agents |
| Civil unenforceability of loan terms | Civil Code Art. 1409 (illegal contracts) | Courts may refuse to aid collection |
| Reputation & data-privacy suits | Data Privacy Act 2012; Consumer Act 1992 | Claims for abusive collection or “doxing” |
2. Key Legal Concepts & Documents
| Document | Purpose | Must-have details |
|---|---|---|
| Certificate of Incorporation (CI) | Shows existence as a stock corporation | SEC Reg. No., date of issue, signed by SEC Company Registration and Monitoring Department (CRMD) |
| Certificate of Authority (CA) to Operate as a Lending Company | Explicit license under R.A. 9474 | CA No., validity “until revoked,” corporate name must include “Lending Company/Core Lending Corp.” |
| General Information Sheet (GIS) | Annual disclosure of owners/officers | Posted on SEC’s public portal (after filing through eFAST) |
| Audited Financial Statements (AFS) | Annual financial condition; must maintain ₱1 million paid-in capital | Auditor’s opinion, schedules, tax stamp |
Tip: Financing companies (governed by R.A. 8556) need a separate CA and higher paid-in capital (₱10 million in Metro Manila), but the verification steps below are almost identical.
3. Practical Step-by-Step Verification
| Step | What to do | Where / How |
|---|---|---|
| 1. Identify the exact corporate name | Use spelling as shown in advertisements, contracts, or app listing. Include “Inc.” or “Corp.” | Reduces false negatives in SEC systems |
| 2. Search public SEC databases | (a) SEC eFAST “Search” ➔ “Company” → enter name or Reg. No. (b) Legacy CRS/i-View (still works for pre-2021 registrants) |
Free, browser-based; returns CI, CA, GIS filenames and dates filed |
| 3. Check SEC masterlists | SEC periodically uploads PDF lists: • “List of Licensed Lending Companies” • “List of Allowed Online Lending Platforms (OLPs)” under Memorandum Circular No. 10-2021 |
Located in sec.gov.ph ➔ Advisories / Lending Companies |
| 4. Request certified copies (optional but stronger) | Use SEC Express System (express.sec.gov.ph) or walk-in at SEC PICC Secretariat Bldg., Pasay | Pay ₱30/page + courier; documents arrive in 3-5 days |
| 5. Inspect on-site or in-app disclosures | R.A. 9474 § 6 requires conspicuous display of CI & CA in every place of business and on the home screen of mobile apps/sites | A missing or blurred certificate is a red flag |
| 6. Call or e-mail SEC for confirmation | • Enforcement & Investor Protection Dept. (EIPD): eipd@sec.gov.ph • Public Assistance: (+63 2) 8848-5704 / 8818-5554 |
Provide corporate name, Reg. No., trade names |
| 7. Cross-check with other regulators (if needed) | For banks and credit cooperatives, verify with Bangko Sentral ng Pilipinas (BSP) or CDA | Prevents confusion between BSP-supervised and SEC-supervised entities |
4. Red Flags of an Unregistered or Illegal Lender
- No CA number on marketing materials.
- Uses a trade name totally different from the registered corporate name.
- Avoids issuing official receipts or demands fees before loan release.
- Threat-based collection tactics (public shaming, contacting entire phonebook) – expressly prohibited by SEC Memorandum Circular No. 18-2019.
- Interest above the Truth in Lending Act disclosure or charging > 6 % /month without proper computation.
5. Consequences for the Lender
| Violation | Regulator action |
|---|---|
| Operating without CA | SEC Cease & Desist Order (CDO); asset freeze through Anti-Money Laundering Council |
| Misrepresentation or usury | SEC revocation of CA, referral for criminal prosecution |
| Failure to file GIS/AFS | Suspension/revocation plus daily fines up to ₱1 000 |
6. Remedies for Borrowers and Whistle-blowers
- File an online complaint: SEC EIPD Complaint Form via email (attach screenshots, contracts).
- Consumer arbitration: Apply to the Department of Trade and Industry (DTI) for deceptive acts affecting consumers.
- Civil action for damages under Art. 19, 20 & 21, Civil Code.
- Criminal affidavit: For intimidation, estafa, or cyber-libel complaints with the National Bureau of Investigation (NBI) Cybercrime Division.
7. For Entrepreneurs: How to Stay Compliant
Incorporation: Minimum five incorporators, 25 % subscribed capital, ₱1 million paid-in.
Secure the CA: File SEC Form L-1, board resolution, notarized Information Sheet, and proof of capitalization.
Post-licensing filings:
- GIS within 30 days after annual stockholders’ meeting.
- AFS audited by an independent CPA within 120 days from fiscal year-end.
Operational rules:
- Record-keeping: Books of accounts, borrowers’ ledger, contracts stamped “Registered with SEC”.
- AMLA compliance: Register with Anti-Money Laundering Council (AMLC) and submit Covered & Suspicious Transaction Reports.
- Consumer protection: Follow Truth in Lending Act (R.A. 3765) and BSP-SEC Joint Guidelines on Fair Collection Practices.
Continuous disclosure: Upload any new Online Lending Platform for approval before launch (MC 10-2021).
8. Frequently Asked Questions
| Question | Short answer |
|---|---|
| Is a business permit enough? | No. A mayor’s permit is local authority; you still need SEC CA. |
| What if the company says “registration pending”? | It cannot operate or advertise loans until the CA is actually issued. |
| Are pawnshops and buy-and-sell ‘5-6’ lenders covered? | Pawnshops are BSP-regulated; informal ‘5-6’ moneylenders are illegal if unregistered. |
| How often is the SEC list updated? | The masterlist of Lending Companies is typically refreshed monthly, OLP list quarterly. |
| Can a foreign-owned company be a lender? | Yes, but it must observe the 40 % foreign-ownership cap for financing (not lending) corporations unless qualified under FINL’s negative list exceptions. |
9. Conclusion
Verifying a lender’s SEC registration is straightforward: (1) know its exact corporate name; (2) search SEC eFAST or masterlists; (3) examine or request the Certificate of Authority; and (4) consult the SEC directly if in doubt. These steps shield borrowers from abusive practices, help investors avoid scams, and keep legitimate industry players compliant. In an era of proliferating mobile lending apps and social-media “pautang,” due diligence is not optional—it is your first line of defense.