How to Confirm if a Lending Company Is Legit and Licensed by the SEC (Philippines)

This article explains, in practical detail, how an individual or business can verify whether a Philippine lending company is legitimate and properly licensed under Philippine law. It is written for non-lawyers and compliance officers alike, but it cites the controlling legal ideas so you can spot red flags and protect yourself.

1) Why licensing matters

In the Philippines, lending companies (as distinct from banks, cooperatives, pawnshops, and informal “loan sharks”) are primarily governed by the Lending Company Regulation Act (LCRA) and its implementing rules. A lending company must:

be organized as a corporation (not a sole proprietorship or partnership);
be registered with the Securities and Exchange Commission (SEC); and
hold a Certificate of Authority (CA) to Operate as a Lending Company issued by the SEC.

Operating without a CA is unlawful and exposes the operator—and sometimes its officers—to regulatory enforcement, including cease-and-desist orders, administrative fines, and possible criminal prosecution. For borrowers, dealing with unlicensed lenders increases the risk of abusive collection, unlawful data use, and void or unenforceable terms.

2) “Lending company” vs. other lenders (don’t mix them up)

Different Philippine regulators supervise different types of lenders. Confirm which bucket your counterparty belongs to before you verify licensing:

Banks (including rural and thrift banks) → Bangko Sentral ng Pilipinas (BSP) license.
Financing companies (engage in financing/consumer credit beyond simple money lending; may also be corporate) → SEC registration plus a Certificate of Authority as a Financing Company (distinct from a lending company CA).
Cooperatives offering loans to members → Cooperative Development Authority (CDA) registration; not SEC licensing for the coop itself.
Pawnshops, money service businesses → BSP registration and specific licenses.
Microfinance NGOs → registered with the SEC (as a non-stock entity) but require microfinance NGO certification under a separate framework.
Individuals/“5–6” lenders/loan sharks → typically unlicensed and illegal if in the business of lending to the public.

If the entity says it’s a “lending company,” you’re looking for SEC corporate registration + CA as a Lending Company.

3) The two SEC documents you must see

Ask the company to provide clear copies (front and back where applicable) of:

SEC Certificate of Incorporation / Registration
- Confirms the corporation legally exists.
- The corporate name on this certificate must match the name used in marketing, contracts, receipts, and apps/FB pages.
SEC Certificate of Authority to Operate as a Lending Company
- This is the license. It is separate from the incorporation certificate.
- The CA will identify the company and the authority “to operate as a LENDING COMPANY.”
- Check the validity or any conditions stated. Some CAs note regulatory constraints or dates tied to compliance.

Tip: A legit lender will share these readily. Evasive behavior (“we’ll send later,” “privacy reasons”) is a red flag.

4) How to verify authenticity (step-by-step)

A. Match the details across all materials

Corporate name on the CA and incorporation certificate must be identical to the name printed on the loan agreement, official receipts, website/app, and social media pages.
Business address and contact numbers should be consistent across documents and public listings.
If they use a brand name different from the corporate name, contract headers should still show the legal corporate name as the lender.

B. Confirm the Certificate of Authority

Check the exact wording (“to operate as a Lending Company”). A financing company’s CA is a different license class; if the document says “Financing Company,” the entity should hold itself out consistently as such.
Look for revocation/suspension indications. If the company discloses a prior SEC order, ask for the latest compliance order lifting it.

C. Verify the company’s registration status independently

Use the SEC’s official company search / registry lookup to confirm the corporation exists and is Active/Registered.
Check whether the SEC has advisories or cease-and-desist orders naming the entity (or its affiliates, prior names, apps, or domain aliases).
For online lending platforms (OLPs)/apps, confirm that the operator (the corporation) is licensed and that the app/brand is listed as an approved platform of that licensee.

Name-game warning: Scammers use look-alike names (e.g., “ABC Lending” vs “AB&C Lending Corp.”). Verify SEC registration numbers and CA numbers, not just names.

D. Confirm basic local business legitimacy

Mayor’s/Business Permit for the operating address (lending offices are usually required to secure local permits).
BIR registration for official receipts/invoices.
For branches, ask for branch permits and the head office license details.

5) Legal and compliance markers of a legitimate lending company

A licensed lending company that takes compliance seriously will usually meet these standards:

Proper disclosures: Before you sign, you receive a written breakdown of the loan amount, all finance charges, fees, and the effective interest rate (Truth in Lending Act).
Clear contract: The lender’s full corporate name, address, and CA details are on the contract; the borrower gets a complete copy immediately after signing.
Data privacy compliance: The lender presents (or links to) a Privacy Notice; consents are specific (no blanket access to phone contacts/photos).
Fair collection practices: No threats, public shaming, contact-list harvesting, defamatory posts, or contacting people not your guarantors/references. Legit lenders have internal complaints-handling and escalation procedures.
No advance-fee scams: Fees are deducted from proceeds or paid upon release—not demanded via GCash/PayMaya “for processing” before any approval.
Transparency for digital channels: If there’s an app, it identifies the corporate owner and shows customer support channels and physical office address.

6) Red flags that usually mean “walk away”

No SEC CA (or they only show a certificate of incorporation).
CA addressed to a different company than the one you’re dealing with.
Sole proprietorship or DTI certificate offered as proof of authority to lend to the public as a “lending company.”
Absurdly high daily/weekly rates with hidden add-ons; pressure to sign immediately.
Upfront payments for “insurance,” “tax,” or “unlock fee” before release.
Harassment or threats during marketing or collections; asking for phone unlock codes, screenshots of bank balances, or access to contacts/photos.
Contracts with blank spaces, or insistence on e-signing without giving you a copy.
Use of multiple look-alike brands/apps tied to the same unlicensed operator.

7) Special notes for online loans and apps

The corporate operator behind the app must be a duly registered corporation with an SEC CA.
Many abusive practices (e.g., contact-list scraping, doxxing, threats) have been the subject of SEC and privacy enforcement. A compliant app limits permissions to what’s necessary (e.g., identity verification) and explains them.
If the app’s “About/Company” section does not clearly state the legal corporate name and CA details, treat this as a serious warning sign.

8) What to do if something doesn’t check out

Do not proceed with the loan. Keep screenshots and copies of documents and chats.
Report suspected illegal lending or abusive collection to the SEC Enforcement and Investor Protection unit.
If your personal data was misused (e.g., contact scraping, public shaming), file a complaint with the National Privacy Commission (NPC) and include evidence (screens, call recordings, messages).
For threats, extortion, or cyber-harassment, report to law enforcement (e.g., NBI-ACG or PNP cyber units).
If you already signed but were deceived, consult a lawyer or your Public Attorney’s Office (PAO) office about remedies (void provisions, abusive charges, unfair terms).

9) Practical borrower checklist (print and keep)

Ask and verify:

SEC Certificate of Incorporation (matches name used publicly)
SEC Certificate of Authority to Operate as a Lending Company (current, authentic)
Company search record shows the corporation as Active/Registered
No SEC advisory or cease-and-desist order naming the company/brand/app
Business permit (current, for the operating LGU address)
BIR registration and official receipts issued in the corporate name
Full loan disclosure (amount financed, fees, effective interest rate) provided before you sign
Privacy Notice and limited app permissions; no contact-list access for “collection”
Customer service channels (phone/email/office) that respond

If any box stays unchecked—stop.

10) Frequently asked questions

Q: Is a DTI certificate enough? A: No. A lending company must be a corporation with an SEC CA. A DTI certificate only applies to sole proprietorship business name registration and is not authority to operate as a lending company.

Q: The lender says they are a “financing company,” not a lending company. Is that okay? A: Possibly—if they hold the correct CA as a Financing Company and their materials/contracts use that legal identity. The CA type must match the business they conduct.

Q: Are interest caps or fee limits the same for everyone? A: Rules can differ by product type and regulator. Always insist on total cost of credit disclosures and compare the effective (not headline) rate.

Q: The app is on the Play Store; doesn’t that mean it’s legit? A: No. Store availability is not proof of licensing. Always verify the corporate operator and its SEC CA.

11) Document hygiene and self-protection tips

Keep originals/copies: SEC certificates, receipts, the signed loan contract, and the disclosure statement.
Pay only through official channels tied to the corporation (company bank account, official e-wallet business account); avoid sending to personal accounts.
Record interactions (emails, SMS, in-app messages).
Never hand over your ATM card, PINs, OTPs, or device unlock codes.
Refuse blanket consents (e.g., access to contacts/photos). Consent must be specific and necessary.

12) Summary

To confirm a Philippine lending company is legitimate: (1) verify it is a corporation, (2) confirm SEC registration, and (3) most importantly, confirm a current SEC Certificate of Authority to Operate as a Lending Company. Cross-check names, numbers, addresses, and brand/app identities, and look for compliance hallmarks—proper disclosures, privacy safeguards, and fair collections. When anything doesn’t add up, don’t sign and report.

This article is general information, not legal advice. For a specific situation, consult a Philippine lawyer or accredited financial counselor.