In the Philippines, the proliferation of online lending platforms and credit facilities has made it increasingly important for the public to distinguish between legitimate entities and predatory, "fly-by-night" operations. Under Philippine law, lending and financing companies are strictly regulated by the Securities and Exchange Commission (SEC).

1. The Statutory Requirement

The legal framework for these entities is primarily governed by two statutes:

Republic Act No. 9474 (Lending Company Regulation Act of 2007)
Republic Act No. 8556 (Financing Company Act of 1998)

A critical distinction in Philippine law is that a company must possess two distinct sets of documents to operate legally:

Certificate of Incorporation: This proves the company is a registered juridical entity.
Certificate of Authority (CA): This is a specific license issued by the SEC to engage in the business of lending or financing. Possessing a Certificate of Incorporation alone does not authorize a company to lend money to the public.

2. Steps to Verify Registration Status

To ensure a company is compliant with SEC regulations, follow these verification protocols:

A. Consult the SEC Official Website

The SEC maintains updated lists of entities with revoked or active licenses.

Visit the SEC website (sec.gov.ph).
Navigate to the "Public Information" or "Lending & Financing Companies" section.
Check the "List of Lending Companies" or "List of Financing Companies" with active Certificates of Authority.

B. Verify the Certificate of Authority (CA) Number

Every legitimate lending or financing company is required by law to display its CA Number on its advertisements, mobile apps, and physical offices.

Cross-reference the CA number provided by the company against the SEC’s database.
If a company provides a Corporate Registration Number but refuses or cannot provide a CA Number, it is operating illegally.

C. Use the SEC Check App

The SEC has launched the SEC Check App, a mobile tool designed for the public to verify the registration and licensing status of companies in real-time. This is particularly useful for verifying Online Lending Platforms (OLPs).

3. Verification of Online Lending Platforms (OLPs)

Due to the rise of predatory lending apps, the SEC issued SEC Memorandum Circular No. 19 (Series of 2019). This requires all lending and financing companies to register their OLPs as "business names" under their main corporate umbrella.

Check the App Description: Legitimate apps must state their corporate name and CA number in the "About" or "Legal" section of the app store.
Verify the Owner: Ensure the company owning the app is the same entity listed on the SEC’s white list of companies with authority to operate OLPs.

4. Red Flags of Unregistered Entities

If a company exhibits the following characteristics, it is likely not registered or is operating in violation of the law:

Absence of a CA Number: The most definitive sign of an illegal operation.
Hidden Physical Address: Legitimate companies are required to maintain a principal office.
Inconsistent Names: The name on the mobile app does not match any entity in the SEC database.
High-Pressure Tactics: Use of harassment, debt-shaming, or unauthorized access to phone contacts (which violates the Data Privacy Act of 2012).

5. Legal Remedies for Unlicensed Lending

Engaging in lending or financing activities without a valid Certificate of Authority is a criminal offense. Under R.A. 9474, any person who shall engage in the business of lending without a valid CA may face:

A fine ranging from ₱10,000 to ₱50,000.
Imprisonment of six months to ten years.
Or both, at the discretion of the court.

For those encountering unregistered lenders, a formal complaint can be filed with the SEC Corporate Governance and Finance Department (CGFD) via email or through the SEC’s online complaint portal.