How to Verify if a Lending Company Is Legitimate in the Philippines (SEC Check)

This is general information for consumers in the Philippines. It is not legal advice.

TL;DR (Quick Checklist)

Before you sign or send any ID/selfie/money:

Ask for two documents (clear photos or PDFs):
- SEC Certificate of Incorporation (proves it’s a registered corporation), and
- SEC Certificate of Authority (CA) to Operate as a Lending Company (this is the big one).
Match the details across documents, website/app, and ID cards:
- Exact corporate name, trade name (if any), principal office, and CA number.
Confirm status with the SEC:
- Use the SEC’s public company lookup or contact the SEC to confirm the CA is valid and not suspended/revoked.
Check if it’s on any SEC advisories (entities/apps flagged or ordered to stop).
Verify local business permits (mayor’s permit) and BIR registration details at the place of business.
Read the contract for full cost disclosure (interest, fees, penalties) consistent with the Truth in Lending Act (RA 3765) and Financial Products and Services Consumer Protection Act (RA 11765).
Data privacy & collection: the lender must follow the Data Privacy Act (RA 10173) and must not harass or shame you in collections.

Why “SEC Check” Matters

In the Philippines, lending companies (non-banks that lend money to the public for profit) are primarily regulated by the Securities and Exchange Commission (SEC) under the Lending Company Regulation Act of 2007 (RA 9474) and its rules. To legally operate, a lending company must:

Be a stock corporation (you won’t see a sole proprietorship or partnership legally doing “lending company” business).
Obtain a Certificate of Authority (CA) from the SEC in addition to its Certificate of Incorporation.
Follow ongoing compliance (reports, fair collection practices, disclosure, and—in the case of online lenders—additional platform/app requirements).

No CA, no lending. A corporate registration alone is not enough.

Lending vs. Financing vs. Banks vs. Cooperatives (Know the Regulator)

Lending Company → SEC (RA 9474). Typical cash loans to individuals or small businesses.
Financing Company → SEC (RA 8556). Often purchase-linked financing (e.g., vehicle/appliance financing), bigger capitalization.
Bank/Thrift/Rural/Cooperative Bank & Pawnshop/Money Service Business → Bangko Sentral ng Pilipinas (BSP). Verify directly with BSP.
Cooperative (loans exclusive to members) → Cooperative Development Authority (CDA).
Microfinance NGO → Registered as NGO; subject to the Microfinance NGOs Act (RA 10693) and related rules.

If the entity claims to be a bank or a cooperative, don’t stop at the SEC—check with BSP or CDA respectively.

Step-by-Step: How to Perform an SEC Check

1) Obtain and inspect the two SEC documents

Ask the lender to send clear scans/photos:

Certificate of Incorporation Confirms the corporation exists. Check:
- Exact corporate name (including “Inc.”/“Corp.”).
- Company Registration Number and date.
- Principal office address.
Certificate of Authority (CA) to Operate as a Lending Company Confirms legal authority to operate as a lending company. Check:
- The same corporate name as the incorporation certificate.
- The phrase “to operate as a Lending Company” (not just “corporation”).
- CA number, issuance date, and signatories.
- If an online/app/trade name is used, ask for the trade name registration (and confirm it’s linked to the same corporation with the CA).

Tip: Legit lenders are used to these requests and will share the documents promptly. Hesitation or excuses are a red flag.

2) Cross-match names and branding

App/website/page name = Trade name? Confirm the corporate owner (the same entity on the CA) owns the brand/app.
Location: Principal office on the CA should align with what’s on the website, receipts, and contract.
Directors/Officers: If listed on the app/website, they should match SEC filings.

3) Confirm current status with the SEC

Search the SEC’s public company lookup to find the corporation and view basic info.
If available, search the SEC’s list of lending/financing companies with valid Certificates of Authority.
Review SEC advisories/press releases/cease-and-desist orders for entities and online lending platforms (OLPs) that are unregistered, suspended, or revoked.
If in doubt, contact the SEC (by phone/email or at a Satellite/Extension Office) with the corporate name and CA number and ask if the CA is valid and active.

(You asked me not to search, so I’m not inserting links—but you can find these resources directly on the SEC Philippines website and official social channels.)

4) Local permits & BIR registration

Mayor’s/Business Permit at the principal office or branch.
BIR Registration (e.g., 2303) and proper Official Receipts or Collection Receipts.

5) If it’s an online/app-based lender

Confirm the corporate owner of the app is the same entity that holds the CA.
Check the app permissions:
- Access to contacts, photos, microphone, or location must be necessary and proportionate to providing the service; abusive contact scraping is a major red flag.
Make sure they provide pre-contract disclosures digitally and a downloadable copy of the loan agreement.

Contract & Cost-of-Credit Compliance (What to Look For)

Under the Truth in Lending Act (RA 3765) and related rules, lenders must clearly disclose:

Principal (net proceeds you actually receive).
Interest rate(s) (state the basis: per annum/month/day) and how interest accrues (flat, add-on, effective).
All fees/charges (processing, service, appraisals, disbursement fees).
Penalties (late fees, default interest), grace periods, and when charges start.
Total amount to be repaid and repayment schedule (dates and amounts).
Security/Collateral (if any) and consequences of default.
Right to prepay and any prepayment penalties.
Data processing notices and collection practices.

Under the Financial Products and Services Consumer Protection Act (RA 11765), providers must treat consumers fairly, use plain language, handle complaints properly, and avoid unfair, deceptive, or abusive acts and practices (UDAAP).

Red flag: Vague or shifting fees; refusal to itemize charges; pressure to sign “now or lose the offer”; no copy of the contract; or “we will disclose after approval.”

Collection Practices: What’s Allowed vs. Not

Harassment, threats, intimidation, profanity, or public shaming (contacting your employer/family/friends to embarrass you) can violate SEC rules on unfair collection practices, consumer-protection laws, and the Data Privacy Act (RA 10173).
Collectors should identify themselves, contact at reasonable hours, and discuss only your account with you (or your authorized representative).
Retaining ATM cards, IDs, or bank cards as “collateral,” or coerced self-debit/auto-deduct without clear consent, are red flags and can be unlawful or abusive.

Keep screenshots, call logs, and messages—they are crucial evidence if you complain.

Common Red Flags of an Illegitimate Lender

No SEC CA (or the name on the CA doesn’t match the brand/app).
Claims to be a “registered DTI business” only (DTI is for trade names/sole proprietors; lending companies must be SEC-registered corporations with a CA).
Unrealistic approvals (e.g., “no docs, guaranteed in minutes”) but asks for upfront fees before any disbursement.
Refusal to provide copies of the contract beforehand.
Excessive app permissions (contacts/photos) and early threats/shaming tactics.
Sangla-ATM schemes, or requiring physical IDs/ATMs to be surrendered.
Different corporate name on receipts than on the contract/app.

What to Do if Something Looks Off

Stop sharing IDs/selfies/personal info.
Document everything (screenshots, receipts, chat logs, caller IDs).
Report to the appropriate regulator:
- SEC (EIPD/Enforcement) for illegal lending companies and abusive collection by SEC-regulated lenders.
- NPC (National Privacy Commission) for data privacy violations (e.g., doxxing, contact-list harassment).
- BSP for banks/pawnshops/MSBs; CDA for cooperatives.
Consider Small Claims (no lawyer required) for qualifying amounts, or consult counsel for contract disputes/harassment.
If you receive threats, report to PNP/ACG or NBI with your evidence.

Frequently Asked Questions

1) Is there a legal cap on interest for lending companies? The Usury Law ceilings were effectively lifted decades ago, so there’s no general across-the-board cap for non-bank loans. However, courts can strike down unconscionable interest and fees, and consumer-protection rules prohibit unfair or abusive practices. Credit cards and certain products may have specific rate caps set by BSP—this is different from SEC-regulated lending companies.

2) Can a lending company operate using only a DTI registration? No. Lending companies must be SEC-registered corporations and must hold a valid SEC Certificate of Authority to operate as a lending company.

3) The app name is different from the corporation on the certificate. Is that okay? It can be, if the trade name/app is properly registered and clearly tied to the same corporation that holds the CA—and the SEC confirms the lender’s status. If the app is operated by a different or unregistered entity, that’s a problem.

4) Do online lenders need extra approvals? Online lending platforms are subject to SEC rules specific to OLPs, on top of the usual lending-company requirements. If the platform is not associated with an SEC-authorized lending/financing company (and compliant with OLP rules), be cautious.

5) They said they’ll verify me via an e-signature. Is that valid? The E-Commerce Act (RA 8792) recognizes electronic documents and signatures, but you must still receive all required disclosures and a copy of the contract. Consent must be informed and recorded.

A Borrower-Friendly Verification Script

“Hi! Before I proceed, please send me (1) your SEC Certificate of Incorporation and (2) your SEC Certificate of Authority to Operate as a Lending Company. I’ll confirm the CA number with the SEC and check that your corporate name and principal office match your app/website and contract. Also, please send your mayor’s/business permit, BIR registration, and a sample loan contract showing the full cost (interest, fees, penalties, repayment schedule). Thanks!”

Record-Keeping Tips

Save PDFs of all disclosures, invoices, receipts, and your final signed contract.
Keep a payment ledger (dates, amounts, reference numbers).
If you pay in cash, insist on official receipts showing the correct corporate name and TIN.
Set up a calendar reminder for due dates and keep a running total of interest/fees paid.

Bottom Line

A legitimate lending company in the Philippines always has:

An SEC Certificate of Incorporation, and
A valid SEC Certificate of Authority to Operate as a Lending Company, with transparent disclosures, fair collection practices, and compliant data handling.

If any part of that is missing, inconsistent, or hidden, walk away and report it.