Why SEC registration matters

In the Philippines, many entities that offer loans to the public are required to be registered with the Securities and Exchange Commission (SEC) and, in many cases, to hold a separate SEC authority/license before they can legally operate as a lending or financing company. Verifying SEC registration helps you:

confirm the lender is a legally existing entity with accountable officers and a registered address,
reduce the risk of scams, identity theft, and abusive collection practices,
identify the correct government agency to complain to if problems arise, and
avoid paying “fees” to fake lenders that disappear after you send money.

Important: A company can be “SEC-registered” as a corporation but still not authorized to operate as a lending/financing company. You usually need to check both (1) existence/registration and (2) authority to lend.

The legal landscape (what “registered” can mean)

1) SEC registration (primary registration)

This is the company’s legal existence (e.g., corporation/partnership). Proof commonly includes:

Certificate of Incorporation (or Registration)
Articles of Incorporation and By-Laws
SEC Registration Number
General Information Sheet (GIS) filings (for corporations)

A primary SEC registration alone does not automatically mean the entity may engage in lending to the public.

2) SEC authority to operate as a Lending Company or Financing Company (secondary license / authority)

For many lenders, especially those marketing loans to the public, you must also verify they have an SEC-issued:

Certificate of Authority to Operate (wording varies by classification and SEC issuance)

Common categories:

Lending Companies (typically governed under the Lending Company regulation framework)
Financing Companies (separately regulated framework)

If a company advertises lending as a business, you should assume you must verify it has the SEC authority appropriate to its business model.

3) When the SEC might NOT be the primary regulator

Some entities that “lend” are regulated elsewhere:

Banks and quasi-banks → Bangko Sentral ng Pilipinas (BSP)
Cooperatives → Cooperative Development Authority (CDA)
Pawnshops / certain money service businesses → typically BSP-regulated (depending on structure)
Government lending programs → specific enabling laws/agencies

So, if a “loan provider” claims it is a bank, cooperative, or pawnshop, you should verify with the correct regulator, not only the SEC.

The verification checklist (do this in order)

Step 1: Get the exact legal name and details (don’t rely on the app name)

Loan apps often use brand names that differ from the legal entity. Ask for (or locate in the app/website):

Exact registered corporate name (including “Inc.,” “Corp.,” etc.)
SEC registration number
Registered office address
Name of CEO/President or compliance officer
For apps: operator’s legal entity name and contact details

Red flag: They refuse to provide a legal name, give only a brand name, or provide inconsistent spellings.

Step 2: Confirm SEC registration (company existence)

Use official SEC verification channels (online search portals and/or SEC public inquiry services). You are looking to confirm:

the entity exists in SEC records,
the legal name matches exactly,
the registration number corresponds to that name,
the status is not delinquent/revoked (where such status is shown).

Practical tips

Match punctuation and suffixes exactly (e.g., “ABC Lending, Inc.” is not the same as “ABC Lending Corporation”).
Watch for look-alike names designed to mimic legitimate companies.
If the portal shows multiple similar results, verify address and incorporators/officers.

What to ask the lender for if you can’t find them

a clear photo/PDF of the SEC Certificate of Incorporation/Registration
their latest GIS (or proof of recent filing)
an official email domain tied to the company name (not free email providers)

Red flag: They provide a certificate but you cannot verify the registration number and company name through SEC channels.

Step 3: Confirm they are authorized to operate as a lending/financing company

This is the most overlooked step.

Ask for:

Certificate of Authority to Operate as a lending company or financing company (SEC-issued)
Any SEC-issued proof of continuing authority/renewal if applicable
The name of the authorized business and branch/es (if the certificate specifies)

Then verify that the authority corresponds to:

the same legal entity name,
the same SEC registration number, and
the same business activity (lending/financing).

Red flag: They say “SEC registered” but cannot produce a Certificate of Authority to Operate, or the certificate belongs to a different company name.

Step 4: Validate the operator behind the loan app (Online Lending App context)

For loan apps, verify:

The app listing (and in-app “About” / “Company info”) states the registered company name and physical address
The privacy policy identifies a real entity and how your data is processed
The lender does not rely solely on social media pages or messaging apps

High-risk indicator: An app is aggressive about contacts access, threatens to message your contacts, or demands upfront “processing fees” before release.

Step 5: Cross-check with business permits and physical presence

SEC registration isn’t the same as local authority to do business. Ask for:

Mayor’s/Business Permit (from the city/municipality where the office is located)
BIR registration (as supporting proof)
A verifiable office address and landline (where possible)

Red flag: They claim a major office location but can’t provide a business permit or the address doesn’t exist.

How scammers fake SEC registration (and how to spot it)

1) They show a real certificate—but it’s for a different business

They may use a legitimate SEC registration of a shell company that does not have authority to lend.

Counter-check: Verify the company name + SEC number + authority to operate all match.

2) They use a “similar name” trick

Example: “XYZ Lending Inc.” vs “X.Y.Z. Lending Incorporated.”

Counter-check: Exact match, including punctuation and suffixes.

3) They claim they’re “under a partner company”

They say the app is “powered by” a registered lender, but the money flow and contract are with an unregistered operator.

Counter-check: Who is the contracting party in the loan agreement? Who receives payments? Who controls collections?

4) They demand upfront fees

Common scam: “Insurance fee,” “verification fee,” “release fee,” “membership,” etc.

Rule of thumb: Be extremely cautious with upfront payments, especially if the lender cannot be verified.

What documents a legitimate SEC-registered lender should be able to provide

Ask for clear copies (PDF/photos) of:

Certificate of Incorporation/Registration (SEC)
Articles of Incorporation (showing primary purpose consistent with lending/financing if applicable)
Certificate of Authority to Operate as a lending/financing company (SEC)
Latest General Information Sheet (GIS) proof of filing
Business Permit (LGU)
Loan agreement/Disclosure statement showing:
- principal, interest, fees, net proceeds, penalties
- repayment schedule
- collection policy
- complaint channels

Practical tip: If they’re legitimate, they typically won’t hesitate to give you these, with consistent details.

“SEC-registered” does NOT automatically mean “safe” or “fair”

Even a legitimate lender can violate consumer protection and data privacy norms. Watch for:

unclear pricing: “low interest” but heavy daily fees and deductions
nontransparent “service charges” that balloon the effective cost
abusive collection: threats, shaming, contacting your employer/contacts
excessive permissions: demanding access to contacts, photos, messages beyond what’s necessary
“rollover” traps: repeated refinancing that increases total debt

If you see these, treat it as a legal and consumer risk even if the company is registered.

What to do if the lender is not SEC-registered or not authorized

If you have not borrowed yet

Do not proceed.
Do not send “processing” payments or personal documents.
Report and block.

If you already borrowed

Preserve evidence
- screenshots of app pages, terms, threats, messages, call logs
- receipts, payment channels, bank/ewallet details
- the loan contract and amortization schedule
Send a written demand for proper disclosures
- request itemized breakdown (principal, interest, fees, deductions)
- request official company details and complaint process
- insist on written communications
File complaints with the correct agencies Depending on the issue, you may consider:

SEC (for unregistered/unlicensed lending/financing activity; abusive practices within SEC jurisdiction)
National Privacy Commission (NPC) (for improper data collection/processing, contact-harassment via your phonebook, doxxing)
PNP/NBI (for threats, extortion, identity theft, cyber-related offenses)
Your e-wallet/bank (to flag suspicious merchant accounts and payment rails)

Consider legal counsel Especially if there are threats, workplace harassment, identity misuse, or unusually high charges.

FAQs

“They’re SEC-registered. Is that enough?”

Not always. Confirm they’re authorized to operate as a lending/financing company, not just incorporated.

“The app says it’s a ‘platform’ only.”

If the platform is arranging loans, collecting payments, or controlling collections, you still need to identify the true lender and confirm the lender’s authority.

“The lender says they’re ‘international’ and not required to register.”

If they are offering loans to the Philippine public and operating locally (including through an app targeting Philippine borrowers), treat that as a major red flag. You generally want a Philippine-registered entity and proper authority.

“Can an individual lend money without SEC registration?”

A private individual lending occasionally (not as a business to the public) is different from a company soliciting loans as a business. If it looks like a business, markets publicly, uses an app, or lends systematically, verification and regulation concerns intensify.

A practical “one-page” verification script you can use

When you message a lender/app support:

Please provide the following for verification: (1) Exact registered company name and SEC registration number (2) Copy of SEC Certificate of Incorporation/Registration (3) Copy of SEC Certificate of Authority to Operate as a Lending/Financing Company (4) Registered office address and contact details (5) Copy of your latest GIS filing proof (6) Itemized loan disclosure: principal, interest, all fees, deductions, net proceeds, penalties, and payment schedule

If they evade, pressure you to proceed, or demand fees first, treat that as a serious warning.

Bottom line

To verify a loan app or lending company in the Philippines, check two layers:

Does the company legally exist in SEC records? (registration/identity)
Is it authorized by the SEC to operate as a lending or financing company? (authority/license)

Then confirm the app’s operator and assess conduct: transparency, disclosures, privacy, and collection behavior. Even “registered” lenders can be abusive—so your verification should include both regulatory status and real-world practices.