In the digital age, the Philippine lending landscape has seen an explosion of accessibility, particularly through mobile applications. However, this convenience is often shadowed by the rise of predatory and unregistered lenders. For any borrower, the most critical step before signing a contract or clicking "apply" is ensuring the entity is legally authorized to operate.

In the Philippines, the Securities and Exchange Commission (SEC) is the sole regulatory body tasked with the supervision of lending and financing companies. Here is everything you need to know about verifying their legitimacy.

1. The Legal Framework: Why Registration is Mandatory

Under Philippine law, lending is a highly regulated activity. Two primary statutes govern these entities:

Republic Act No. 9474 (Lending Company Regulation Act of 2007): Governs companies engaged in granting loans from their own capital or funds sourced from not more than 19 persons.
Republic Act No. 8556 (Financing Company Act of 1998): Governs companies primarily organized for the purpose of extending credit facilities through leasing, factoring, or buying installment papers.

Crucial Note: A company cannot simply register as a "regular" corporation and start lending. It must be specifically licensed as a Lending or Financing company.

2. The Distinction: Certificate of Incorporation vs. Certificate of Authority

A common tactic used by fraudulent lenders is presenting a Certificate of Incorporation to "prove" they are legitimate. Do not be misled.

Document	Purpose	Significance for Borrowers
Certificate of Incorporation	Proves the entity exists as a legal corporation in the Philippines.	Not enough. Every business (from a bakeshop to a tech firm) has this.
Certificate of Authority (CA)	A secondary license granting the specific right to operate as a lender.	Mandatory. Without a CA, the act of lending to the public is illegal.

The Rule of Thumb: If they have an SEC Registration Number but no CA Number, they are operating outside the law.

3. Step-by-Step Verification Process

To verify a lending company in 2026, follow these official protocols:

Step A: Check the SEC Official Website

The SEC maintains a "live" list of registered lending and financing companies.

Visit the official SEC website (sec.gov.ph).
Navigate to the "Public Information" or "Lending & Financing Companies" section.
Download or search the "List of Lending Companies with Certificate of Authority" or "List of Financing Companies with Certificate of Authority."
Ensure the company name matches exactly what is on your loan contract.

Step B: Use the SEC Check App

The SEC has modernized verification through the SEC Check App (available on the Google Play Store and Apple App Store). This mobile tool allows you to:

Search for a company name.
Verify the status of their CA (Active, Suspended, or Revoked).
Report suspicious entities directly through the interface.

Step C: Utilize SEC i-View or eSPARC

For a deeper dive, use the SEC i-View system to view the company’s Articles of Incorporation. A legitimate lender must have "Lending" or "Financing" listed as its primary purpose. If it is listed as a secondary purpose, they still require a specific CA to operate.

4. Specialized Verification for Online Lending Platforms (OLPs)

If you are using a mobile app (e.g., Tala, JuanHand, etc.), the verification process involves an additional layer. Per SEC Memorandum Circular No. 19 (Series of 2019):

The White List: The SEC maintains a specific list of Registered Online Lending Platforms. An app must be explicitly tied to a corporation that holds a CA.
App Disclosure: Legitimate apps are required to display their Corporate Name, SEC Registration Number, and CA Number on their "About Us" page and within the app's interface.
Developer Check: Verify the "Developer" listed on the App Store. It should match the corporate name registered with the SEC.

5. Red Flags of Unregistered or Illegal Lenders

If a lender exhibits any of the following traits, exercise extreme caution:

No Physical Office: They only provide a website or a social media page.
Aggressive Collection Tactics: They demand access to your phone’s contact list or gallery (a violation of the Data Privacy Act of 2012).
Hidden Fees: They deduct "processing fees" or "service fees" from the loan principal without prior disclosure.
Refusal to Provide a Disclosure Statement: Under the Truth in Lending Act (RA 3765), lenders must provide a clear breakdown of interest, fees, and total cost of credit before the transaction is consummated.

6. What to Do If a Lender is Not Registered

If your verification reveals the company is unregistered, or if they are using a fake CA number:

Do Not Transact: Cease all communication and do not provide personal identification or bank details.
Report to the SEC: Send an email to the Corporate Governance and Finance Department (CGFD) at cgfd@sec.gov.ph or the Enforcement and Investor Protection Department (EIPD) at epd_complaints@sec.gov.ph.
Contact the CICC: For harassment or cyber-related lending scams, report the entity to the Cybercrime Investigation and Coordinating Center (CICC) via their 1326 hotline.

Would you like me to draft a formal complaint letter addressed to the SEC based on a specific lending app you have encountered?