How to Verify Registration of Lending Companies in the Philippines

Everything a borrower, lawyer, compliance officer, or fintech founder needs to know—current as of August 2 2025

Executive Summary

Because lending involves the public’s money and can severely impact borrowers’ rights, Philippine law subjects lending companies to a two-layer licensing regime under the Securities and Exchange Commission (SEC). Anyone dealing with a lender—whether a traditional storefront, a digital‐only platform, or a mobile app—should confirm that (1) the entity is incorporated as a stock corporation and (2) it holds a Certificate of Authority (CA) to Operate as a Lending Company. The SEC publishes multiple verification tools and issues frequent advisories; failure to check them may expose borrowers to exorbitant charges, abusive collection practices, and the invalidity of the loan contract itself.

1. Legal and Regulatory Foundations

Instrument	Key Points	Why It Matters
Republic Act (RA) 9474 — Lending Company Regulation Act of 2007	• Requires lending activities “in the regular course of business” to be done only by SEC-licensed stock corporations. • Sets minimum paid-up capital (₱1 million for the head office + ₱250 k per branch, or higher as the SEC may fix). • Unregistered operation is criminal (up to ₱1 million fine + 7 years’ imprisonment).	Core statute; provides the two-step licensing framework.
SEC Memorandum Circular (MC) No. 19-2019 and MC No. 10-2021	• Require online lending platforms (OLPs) to be separately registered and linked to a licensed lending company. • Impose stricter disclosure and debt-collection standards. • Mandate submission of app screenshot, privacy policy, and server location.	Governs fintech and mobile-app lenders.
RA 11765 — Financial Products and Services Consumer Protection Act (2022)	• Empowers the SEC to suspend products, fine up to ₱50 million, and order restitution for abusive conduct. • Introduces the principle of “responsible lending.”	Provides stronger, consumer-centered enforcement tools.
RA 3765 — Truth in Lending Act & BSP Circular 730-2021	• Require clear disclosure of effective interest rate (EIR), fees, and penalties. • Non-compliance can render charges unenforceable.	Helps borrowers spot hidden fees during verification.

Banks and Financing Companies: Depository banks and quasi-banks are regulated by the Bangko Sentral ng Pilipinas (BSP); financing companies are also under the SEC but follow RA 8556. Verify them through separate BSP or SEC registries.

2. The Two-Layer SEC License & Why Both Matter

Layer	Document	Where to See It	Validity or Red Flags
1. Corporate Registration	Certificate of Incorporation (shows company name, SEC Reg. No., date)	• SEC CRS / i-View portal • Paper certificate displayed in office	Must include the phrase “Lending Company” or “Lending Investor.” Absence implies illegal operation.
2. Operational Authority	Certificate of Authority (CA) to Operate	• SEC list of companies with valid CA (PDF/excel, updated quarterly) • CA number usually printed on contracts & ads	CA status = “Active,” “Revoked,” “Expired,” or “For Hearing.” Only Active may lend legally.

Tip: Some scammers show a genuine Certificate of Incorporation but no CA—always ask for both.

3. Practical Verification: Step-by-Step

Gather the exact entity name. Spelling variations and missing “Inc.” lead to false negatives.
Search the SEC Company Registration System (CRS) / “eSEC Search.”
- Confirm the SEC Reg. No., date of registration, and corporate term.
- Confirm that the company type is “Lending Company”, not simply “Trading” or “Holding.”
Consult the SEC’s CA Master List.
- Download the latest “List of Lending Companies with Valid/Expired/Revoked CA.”
- Cross-check CA number and expiry date.
Check the SEC Online Lending Platform (OLP) List (for apps).
- The list shows each app’s bundle (corporate owner + platform name + Google Play/App Store package ID).
- Apps not in the list are presumed illegal under MC 10-2021.
Review SEC Advisories & Cease-and-Desist Orders (CDOs).
- Search the Advisory archive for the company name, brand, or app.
- If an advisory exists, stop dealing; CDOs freeze operations and indicate serious violations.
Verify the Business Permit at the city/municipal Business Permits and Licensing Office (BPLO).
- Lending companies need a Mayor’s/Business Permit for each outlet.
- Mismatch between corporate name and local permit name is a red flag.
Cross-check Tax Identification Number (TIN) & BIR registration.
- While not a licensing requirement, a legitimate lender must issue Official Receipts and pay taxes.
For Banks or BSP-Supervised Institutions:
- Use BSP’s Financial Institution Portal (FIP) or BSP Circular List.
Contact the SEC Corporate Governance and Finance Department (CGFD).
- Email or dial the public assistance lines for last-mile confirmation.
- Obtain written confirmation for litigation/transaction files.
Retain screenshots and certificates.
- Courts accept SEC-certified true copies or notarized printouts as evidence.

4. Common Red Flags

Red Flag	Why It’s Suspicious
Uses “Investments,” “Cash Loan,” or generic trade name without “Inc.”	RA 9474 requires a stock corporation format.
Claims to be “DTI-registered” only	Sole proprietorships cannot legally conduct for-profit lending.
Demands upfront “processing fee” before release	Often used by fly-by-night operators; legitimate fees are deducted from proceeds, not paid in advance.
Interest disclosed per day/week without Annual Percentage Rate (APR)	Violates RA 3765 and SEC MC 19-2019.
Aggressive harassment or illegal debt-collection (public shaming, threats)	Indicates non-compliance with SEC MC 18-2020 (Provisions on Unfair Debt Collection).

5. Reporting & Remedies

File a complaint with the SEC CGFD – Financing and Lending Companies Division.
- Online forms available through the SEC Complaint Monitoring System.
- Provide contracts, IDs, screenshots, and evidence of collection abuses.
Under RA 11765, demand restitution and damages; SEC may order refunds or cancel products.
Criminal action (RA 9474 §14) may be initiated by the SEC or the public prosecutor.
Data Privacy violations (contact scraping, excessive permissions) may be reported to the National Privacy Commission (NPC).
Cyber-harassment or threats should be escalated to the PNP Anti-Cybercrime Group.

6. Obligations of Licensed Lending Companies

If you are a lender, non-compliance jeopardizes your CA.

Ongoing Obligation	Legal Basis	Frequency
Submit Audited Financial Statements (AFS) & General Information Sheet (GIS)	Revised Corporation Code; SEC Memorandum Circulars on filing deadlines	Annually
File Monthly & Quarterly Reports on loans granted, interest rates, collection data	SEC MC 7-2011 (as amended)	Monthly/Qtr
Maintain Data Privacy compliance (privacy notice, consent)	RA 10173 (Data Privacy Act)	Continuous
Observe SEC MC 18-2020 (Debt-Collection Standards)	Limits calls to 8 AM–5 PM, bans public shaming & profanity	Continuous
Update CA information for each new branch or app	RA 9474 §4; SEC MC 19-2019	Before launch

Failure triggers fines (₱10 k–₱50 k per violation), CA suspension, or revocation.

7. Recent Developments (2023 – 2025)

Digital CA Renewal via eFAST (2024). The SEC’s Electronic Filing and Submission Tool now supports CA renewal and compliance report uploads, reducing processing time to 3 days.
Debt-Collection Guidelines Amended (MC 5-2024). Adds biometric consent requirements for accessing phone contacts; institutes a “three-contact-rule” per delinquent period.
Higher Capital Floors (Proposed MC, exposed June 2025). Draft raises minimum paid-up to ₱5 million for Metro Manila-based lenders; watch for final issuance in Q4 2025.
SEC-NPC Joint Task Force on Privacy in Lending Apps (2024). Joint circular streamlines investigation where data scraping overlaps licensing violations.

8. Putting It All Together

Always look for BOTH the Certificate of Incorporation and the Certificate of Authority.
Use the SEC’s public databases—they are free and regularly updated.
Check for advisories; the absence of a name in the “valid list” is itself a warning.
Verify local permits and compare details; mismatched addresses or permittees signal fraud.
Document everything; screenshots and SEC acknowledgments strengthen complaints or court cases.

Bottom line: In Philippine law, lending without a CA is not just an administrative offense—it is a crime. Five minutes of verification can save borrowers from predatory interest, abusive collection, and unenforceable contracts.

Conclusion

Verifying a lending company’s registration in the Philippines is neither complicated nor optional. Armed with the steps and legal references above, borrowers and practitioners can confidently determine a lender’s legitimacy, enforce consumer rights, and help cleanse the market of abusive or fly-by-night operators.