How to File an SEC Complaint Against Predatory Lending Companies
(Philippine legal context, June 2025)
Quick take-away: When a lending or financing company harasses you, over-charges interest, or operates without a Certificate of Authority, you may lodge a sworn complaint with the Securities and Exchange Commission’s Enforcement and Investor Protection Department (SEC-EIPD). Provide a detailed narration of facts, attach proof, and submit the papers in person, by courier, or through the SEC’s designated e-mail channels. The SEC can then investigate, slap fines, revoke licenses, or even recommend criminal prosecution.
1. Why the SEC—and not (only) the BSP or DTI?
| Regulator | Primary turf | Typical predatory-lending violations you report |
|---|---|---|
| SEC | Non-bank lending & financing companies, including most online lending apps (OLAs) | Unregistered operation, abusive debt collection, misrepresentation of fees, use of “shaming” tactics |
| Bangko Sentral ng Pilipinas (BSP) | Banks, e-money issuers, and pawnshops | If harassment or over-charging is by a bank-supervised entity |
| DTI | General consumer goods/services | Hidden charges on non-credit products, false advertising |
| National Privacy Commission (NPC) | Data-privacy breaches | Contact scraping, unauthorized disclosure of borrower data |
Tip: You can file in parallel—e.g., a privacy complaint with NPC alongside an SEC case.
2. Legal Foundations You Can Invoke
| Statute / Issuance | Key provisions against predatory conduct |
|---|---|
| Lending Company Regulation Act of 2007 (RA 9474) | Requires SEC registration and a separate Certificate of Authority (CA); penalizes harassment, false statements, and unconscionable interest. |
| Securities Regulation Code (RA 8799) | SEC may issue Cease-and-Desist Orders and impose fines up to ₱5 million for fraudulent or manipulative practices. |
| Financial Products and Services Consumer Protection Act (RA 11765, 2022) | Elevates abusive collection to prohibited conduct; grants SEC stronger visitorial powers. |
| SEC Memorandum Circulars (e.g., MC 19-2019, MC 7-2022) | Ban “contact list harvesting,” public shaming of borrowers, and cap collection hours to 8 AM-5 PM only. |
| Data Privacy Act of 2012 (RA 10173) | Outlaws processing of phone contacts without consent; violators face up to ₱5 million fines plus imprisonment. |
3. Grounds That Typically Stick
- Operating without SEC CA – easiest to prove via a simple name search on https://www.sec.gov.ph/ or the SEC CRS kiosk.
- Exorbitant/hidden charges – interest and “service fees” that push effective annual cost above industry norms (the SEC uses unconscionability, not a fixed cap).
- Harassment / shaming – threats, profanity, or group chats tagging your contacts.
- False advertising – “0% interest” banners that vanish in the fine print.
4. Collect Your Evidence
| Evidence | Examples & tips |
|---|---|
| Loan documents | Screenshots of in-app disclosure pages, electronic loan contracts, payment schedules. |
| Communications | Viber/FB Messenger threads, call recordings (allowed under one-party consent rule if you are a party to the call). |
| Payment proofs | GCash/PayMaya receipts, bank debits. |
| Identity | Government ID—to establish standing. |
| Computations | Table showing how interest + fees exceed principal (helps SEC quantify damages). |
Organize everything in a chronological folder; label each file clearly (“Screenshot – threat 24-Apr-25.png”).
5. Drafting the Complaint (Sworn Statement)
Heading & Parties
- Complainant: Your name, address, e-mail, cellphone.
- Respondent: Company’s registered name and OLA trade name (they sometimes differ).
Narration of Facts
- Dates of loan application, releases, collections.
- Specific abusive acts (quote messages verbatim).
Causes of Action
- “Violation of RA 9474 §7 (no SEC CA).”
- “Violation of SEC MC 19-2019 §4 (public shaming).”
Reliefs Sought
- Issuance of a Cease-and-Desist Order.
- Administrative penalties and referral for criminal prosecution.
Verification & Certification of Non-Forum Shopping
- Sign before a notary or an authorized SEC Admin Officer.
(The SEC website hosts a fillable “CRS Form – EIPD Complaint Affidavit.” If you can’t access it, a free-form affidavit with the above parts works.)
6. Filing Channels (2025)
| Mode | Where to send | Notes |
|---|---|---|
| In person | SEC Main Office, Secretariat Bldg., PICC Complex, Pasay City | Present ID to guard; proceed to Ground-Floor EIPD Docket Desk. |
| Courier | Same address; mark envelope “ATTN: EIPD – Complaint” | Keep the tracking slip. |
| epd@sec.gov.ph (complaints) or eipd_sec@sec.gov.ph | PDF only; max 25 MB. SEC replies with a docket number. | |
| SEC Express Nationwide Submission (SENS) | Book online pickup; LBC delivers to SEC | Ideal for those outside Metro Manila. |
Filing fee: None for investor or borrower complaints as of MC 4-2024.
7. After You File—What to Expect
Preliminary Evaluation (≈ 15 days)
- EIPD screens completeness; may ask for clarifications.
Show-Cause / Subpoena
- Respondent gets 10 days to comment.
Formal Investigation
- Document review, witness affidavits, digital-forensics of the app.
Possible Interim Relief
- Ex-parte Cease-and-Desist Order if ongoing harm is “so grave as to render judgment ineffectual.”
Decision & Penalties
- Administrative: Fines up to ₱1 million plus ₱10k/day for continuing violations.
- Corporate: Revocation of CA or of SEC registration itself.
- Criminal Referral: SEC Legal Affairs forwards dossier to DOJ; courts may impose ₱10k-₱50k fine per count + 6 months-7 years’ imprisonment under RA 9474 §13.
The average life-cycle of a straightforward case (no appeals) is 6-12 months.
8. Parallel or Supplementary Remedies
| Forum | What you can claim |
|---|---|
| NPC | File a “complaint with prayer for damages” for privacy breaches. |
| PNP Anti-Cybercrime Group | Criminal case for grave threats, libel, or cyber harassment. |
| Small Claims Court (MTC) | Recover ≤₱400,000 for over-payments; no lawyer needed. |
| Civil action in RTC | Moral damages for anxiety, reputational harm. |
| Conciliation (Barangay) | Optional; speeds up amicable settlement. |
9. Frequently Asked Questions
| FAQ | Short answer |
|---|---|
| Can I file anonymously? | Yes, but the SEC may need your testimony later; anonymous tips trigger motu proprio probes only in “public interest” cases. |
| Is there a deadline? | No prescriptive period for administrative complaints; criminal actions prescribe in 4 years from violation (Revised Penal Code default). |
| Group complaint possible? | Absolutely—attach a list of complainants and sign one joint verification. |
| What if the firm is registered but still abusive? | Registration is no shield; SEC has sanctioned dozens of duly-registered lenders for harassment and mis-disclosure. |
| Interest rate caps? | The Anti-Usury Law’s ceilings were lifted in 1983, but courts/SEC strike down unconscionable rates under Article 1956 Civil Code + RA 9474. |
10. Best Practices to Boost Your Case
- Act quickly—fresh screenshots are harder to dispute.
- Avoid “partial payments under protest”; pay only what is admitted as due.
- Keep interactions in writing; if the collector calls, text back to recap what was said.
- Beware fake SEC links—use only “sec.gov.ph” sub-domains; look for HTTPS.
- Update the SEC on any new threats or payments while the case is pending (quote your docket number).
Sample One-Page Checklist
- Verified company lacks or has expired CA.
- Affidavit drafted & notarized.
- Proofs labeled chronologically.
- Complaint + annexes merged into single PDF (<25 data-preserve-html-node="true" MB).
- E-mailed to epd@sec.gov.ph; docket number received.
11. Conclusion
Predatory lending is not just a private dispute—it’s a regulatory offense that the Philippine SEC actively pursues. By filing a well-documented, sworn complaint, you not only protect your own finances and mental health; you also help the Commission build a stronger case that can shut down abusive lenders and deter new ones. Follow the steps above, keep your records organized, and stay in touch with the SEC investigators.
This article is for general information only and does not constitute legal advice. For case-specific queries, consult a Philippine lawyer or the SEC Public Information & Assistance Desk (PIAD) at 8823-7828 or picad@sec.gov.ph.