In the Philippines, the rise of financial technology has made credit more accessible, but it has also increased the prevalence of unauthorized lenders and predatory practices. To protect the public, the Securities and Exchange Commission (SEC) strictly regulates lending and financing companies.

Under the Lending Company Regulation Act of 2007 (Republic Act No. 9474) and the Financing Company Act of 1998 (Republic Act No. 8556), no entity shall operate as a lending or financing company without a valid Certificate of Authority (CA) from the SEC.

1. The Two-Tiered Registration Requirement

It is a common misconception that a simple "SEC Registration" is enough to legally lend money. A legitimate lending company must possess two distinct documents:

Certificate of Registration: This proves the company is a legally incorporated entity.
Certificate of Authority (CA): This is the specific license granted by the SEC allowing the company to engage in lending or financing activities.

Operating without a CA is a criminal offense punishable by fines and imprisonment.

2. Step-by-Step Verification Process

To ensure a company is compliant with Philippine laws, follow these verification methods:

A. Check the SEC Official Website

The SEC maintains an updated list of licensed entities.

Visit the official SEC website.
Navigate to the "Public Information" or "Lending & Financing Companies" section.
Review the List of Lending Companies with Certificate of Authority or the List of Financing Companies.
Cross-reference the company's registered name and CA number found on the list with the information provided on their app or website.

B. Verify Online Lending Platforms (Apps)

Many unauthorized lenders operate via mobile applications. The SEC requires all registered lending companies to disclose their Corporate Name, Business Name, SEC Registration Number, and Certificate of Authority Number on their platforms.

Check if the app is explicitly linked to a registered corporation on the SEC's published list of Online Lending Platforms (OLPs).
If the app name is different from the corporate name, ensure the SEC has been notified of the "Doing Business As" (DBA) name.

C. Use the SEC Check App

The SEC has launched mobile tools and portals (such as the SEC Check app or the Z-PH portal) where users can search for a company’s status in real-time by entering the company name.

3. Red Flags of Unauthorized Lenders

Even if a company claims to be registered, certain behaviors may indicate they are operating outside legal bounds:

Absence of CA Number: If they can only provide a SEC Registration number but refuse to show a Certificate of Authority.
High and Hidden Interest Rates: While the Philippines has moved toward interest rate capping (per BSP Circular No. 1133), excessive fees and non-disclosure of the "Effective Interest Rate" violate the Truth in Lending Act (R.A. 3765).
Harassment and Debt Shaming: Legitimate companies are prohibited from using unfair debt collection practices, such as accessing phone contacts or posting on social media, under SEC Memorandum Circular No. 18 (Series of 2019).

4. Legal Remedies for Unregistered Lending

If a company is found to be operating without the necessary permits, or if a registered company is engaging in predatory practices, individuals may take the following actions:

Formal Complaint with the SEC: File a verified complaint through the SEC Corporate Governance and Finance Department (CGFD) or the Enforcement and Investor Protection Department (EIPD).
Reporting to the National Privacy Commission (NPC): If the lender involves "debt shaming" or unauthorized use of personal data.
PNP-ACG / NBI-CCD: For criminal acts involving online fraud or cyber-harassment, reports can be filed with the Philippine National Police Anti-Cybercrime Group or the National Bureau of Investigation.

Summary Checklist for Borrowers

Requirement	Detail
Primary License	Certificate of Registration (as a Corporation)
Secondary License	Certificate of Authority (specifically for Lending/Financing)
Disclosure	Must show CA number on all apps, advertisements, and offices
Verification	Must appear on the SEC’s official list of active licensed entities