In the Philippine financial landscape, the proliferation of digital lending platforms and traditional lending companies has made credit more accessible. However, this growth has also seen a rise in predatory lending practices and unlicensed entities. To protect the public, the Securities and Exchange Commission (SEC) mandates that all lending and financing companies must be strictly regulated.

Under Philippine law, specifically Republic Act No. 9474 (The Lending Company Regulation Act of 2007) and Republic Act No. 8556 (The Financing Company Act of 1998), operating a lending business without proper authorization is a criminal offense.

The Two-Tiered Verification Process

A legitimate lending company must possess two distinct sets of credentials from the SEC. Verification is not complete until both are confirmed:

Certificate of Incorporation (SEC Registration): This proves the company is a legally recognized juridical entity. However, being registered as a corporation does not automatically give a company the right to lend money to the public.
Certificate of Authority (CA): This is the specific license required to operate as a lending or financing company. Engaging in lending activities without a CA is illegal, even if the company is "SEC registered."

Step-by-Step Verification Guide

1. Consultation of the SEC Official Lists

The most reliable method to verify a lender is through the SEC’s official website. The Commission maintains updated databases of entities authorized to operate.

Check the List of Licensed Lending Companies: This list includes traditional brick-and-mortar lenders.
Check the List of Licensed Financing Companies: Financing companies often handle larger-scale credit, leasing, and factoring.
Check the List of Registered Online Lending Platforms (OLPs): Due to the surge in mobile lending apps, the SEC maintains a specific list of apps that are officially tied to licensed lending or financing companies.

2. Cross-Referencing the Lending App and the Corporate Name

Many illegal lenders use catchy app names that differ from their registered corporate names. A legitimate app must clearly disclose its Corporate Name and its SEC Registration/CA Number within the app (usually in the "About Us" or "Legal" section) and on its official website.

Legal Tip: If an app’s name does not appear on the SEC’s "List of Online Lending Platforms," it is likely operating illegally, even if the parent company claims to be registered.

3. Examination of the SEC Certificate of Authority (CA)

If you are dealing with a lender in person, you have the right to demand to see their original Certificate of Authority. A valid CA should contain:

The Corporate Name.
The CA Number.
The date of issuance.
The specific authority to operate as a lending or financing company.

4. Verification via the SEC Company Registration and Monitoring Department (CRMD)

For absolute certainty, individuals may request a Status of Registration from the SEC’s CRMD. This provides a formal confirmation of whether a company’s registration is active, suspended, or revoked.

Red Flags of Unlicensed Lenders

The following characteristics are common among "loan sharks" or illegal online lenders:

Absence of Corporate Disclosure: Failure to provide a physical office address or a registered corporate name.
No SEC CA Number: The lender cannot provide a Certificate of Authority number when asked.
Invasive Permissions: Mobile apps that require access to your entire contact list, gallery, or social media accounts (a violation of the Data Privacy Act of 2012 and SEC memorandum circulars).
Predatory Practices: Use of harassment, shaming, or threatening language to collect payments.
Unreasonable Interest Rates: While the Philippines currently has a ceiling on interest rates and fees for small loans (per BSP Circular No. 1133), unlicensed lenders often far exceed these limits.

Legal Remedies for Victims

If a company is found to be lending without a license, or if a licensed company is engaging in unfair debt collection practices, the following steps should be taken:

File a Formal Complaint with the SEC: Use the SEC Enforcement and Investor Protection Department (EIPD) portal. Provide the name of the entity, their app name (if applicable), and evidence of their transactions.
Report to the National Privacy Commission (NPC): If the lender is using your personal data to harass or shame you, file a complaint for violation of data privacy.
Coordinate with the PNP ACG: For cyber-harassment or online threats, the Philippine National Police Anti-Cybercrime Group (PNP ACG) is the appropriate body for criminal investigation.

Summary Table for Quick Reference

Requirement	Purpose	Status
Certificate of Incorporation	Proves the entity exists legally.	Necessary, but insufficient.
Certificate of Authority (CA)	Grants legal permission to lend money.	Mandatory.
SEC Website Listing	Validates the company against official records.	Primary verification tool.
App Name Disclosure	Links a mobile app to a registered corporation.	Required for all OLPs.