In the digital age, the proliferation of "Online Lending Applications" (OLAs) has made credit more accessible than ever. However, this convenience is accompanied by the risk of predatory lending, harassment, and data privacy violations by unregistered entities. 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 person or entity shall operate as a lending or financing company without a valid license from the Securities and Exchange Commission (SEC).

For borrowers, verifying the legal status of an app is the first and most critical line of defense.

1. The Mandatory Licenses

To operate legally, a lending entity must possess two distinct certificates issued by the SEC:

Certificate of Incorporation: This proves the entity is a registered corporation. However, being a corporation does not automatically grant the right to lend money to the public.
Certificate of Authority (CA): This is the specific license required to engage in lending or financing. An entity may be a registered corporation but still be an illegal lender if it lacks a CA.

2. Step-by-Step Verification via the SEC Website

The most reliable way to verify an app is through the SEC’s official database.

Access the SEC Lists: Visit the official SEC Philippines website. Navigate to the "Lending & Financing Companies" section.
Check the Master Lists: The SEC maintains regularly updated lists, including:

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

Cross-Reference the App Name vs. Corporate Name: Many apps use a "brand name" (e.g., "EasyCash") that differs from their registered corporate name (e.g., "Sample Lending Corp."). Legitimate apps are required by SEC Memorandum Circular No. 19, s. 2019 to disclose their corporate name and CA number on their platform and in all advertisements.
Verify the "List of Verified Online Lending Platforms": Due to the rise of illegal OLAs, the SEC publishes a specific list of lending companies that have officially notified the Commission of their online platforms. If an app is not on this specific list, it is operating outside the SEC’s regulatory monitoring.

3. Red Flags of Illegal Lenders

A lender may be unregistered or operating illicitly if they exhibit the following behaviors:

Absence of Disclosure: Failure to clearly display the Corporate Name, CA Number, and a Disclosure Statement on the app’s interface or website.
Request for Invasive Permissions: Asking for access to your entire contact list, gallery, or social media accounts. This is often a precursor to "debt shaming" or harassment.
Unreasonable Interest Rates: While the Philippines currently has interest rate caps set by the Bangko Sentral ng Pilipinas (BSP) for small-value loans, illegal lenders often exceed these or hide fees through "processing" deductions.
Lack of a Physical Office: Legitimate lending companies are required to maintain a principal place of business.

4. Legal Recourse and Reporting

Operating a lending business without a Certificate of Authority is a criminal offense. If you encounter an unregistered app or experience harassment from a registered one, you can take the following actions:

SEC Corporate Governance and Finance Department (CGFD): File a formal complaint for violations of R.A. 9474 or R.A. 8556.
National Privacy Commission (NPC): If the app uses your personal data to harass or shame you, file a complaint for violation of the Data Privacy Act of 2012 (R.A. 10173).
SEC Enforcement and Investor Protection Department (EIPD): For reporting entities operating without any registration at all.

Summary Checklist for Borrowers

Action	Purpose
Check CA Number	Confirm the entity has the legal authority to lend.
Verify on SEC Website	Ensure the CA number and Corporate Name match the official list.
Read the Disclosure Statement	Ensure all interest rates and fees are transparently declared.
Review App Permissions	Avoid apps that demand access to contacts or private media.

Engaging with unregistered lending applications strips the borrower of legal protections and exposes them to significant financial and personal risks. Always perform due diligence before clicking "Apply."