The rapid digitization of the Philippine financial landscape has led to a surge in Online Lending Platforms (OLPs). However, this growth has been accompanied by a rise in predatory lending practices and harassment. For a lending application to operate legally in the Philippines, it must strictly adhere to the regulations set forth by the Securities and Exchange Commission (SEC) under the Lending Company Regulation Act of 2007 (Republic Act No. 9474) and the Financing Company Act of 1998 (Republic Act No. 8556).
Legal Requirements for Online Lending Apps (OLAs)
Under SEC Memorandum Circular No. 19, Series of 2019, all lending and financing companies must register their OLPs as business names and report them to the Commission. A legitimate online lending app must possess two distinct certifications:
- Certificate of Incorporation: Proves the company is a registered corporation.
- Certificate of Authority (CA): Explicitly grants the company the right to operate as a lending or financing entity.
Note: Operating a lending platform without a Certificate of Authority is a criminal offense under Philippine law.
Verified SEC-Registered Online Lending Apps
As of the latest regulatory updates, the following are notable entities that have maintained active compliance and possess the necessary Certificates of Authority.
| Company Name | Registered Online Lending App(s) |
|---|---|
| Fuse Lending, Inc. | GCash (G-Loan / G-Gives) |
| SeaMoney (Credit) Philippines, Inc. | ShopeePay / SLoan / SpayLater |
| Maya Bank, Inc. / Maya Philippines | Maya Credit / Maya Loans |
| Home Credit Philippines | Home Credit App |
| Digido Finance Corp. | Digido |
| FinAccel Philippines, Inc. | Kredivo |
| Cashalo (Paloo Finance Inc.) | Cashalo |
| Investree Philippines | Investree |
| Talaria Lending Corp. | Tala |
| Philippine Star Metro Lending | FastCash |
This list is non-exhaustive. The SEC periodically updates its database, and consumers are advised to verify specific CA numbers via the official SEC website (sec.gov.ph) before transacting.
Consumer Protection and Fair Debt Collection
The SEC, in coordination with the National Privacy Commission (NPC), has issued strict guidelines regarding how OLAs interact with borrowers. SEC Memorandum Circular No. 18, Series of 2019 prohibits "Unfair Debt Collection Practices," which include:
- Harassment or Abuse: Using profane language, making threats of violence, or contacting people in the borrower's contact list who are not co-makers or guarantors.
- False Representation: Falsely claiming to be a lawyer, a court representative, or a government agency.
- Privacy Violations: Accessing a borrower's phone contacts or photos without explicit, lawful consent for purposes other than credit scoring.
- Unreasonable Hours: Contacting borrowers between 10:00 PM and 6:00 AM, unless the borrower gave prior consent.
Disclosure Requirements (Truth in Lending Act)
Under Republic Act No. 3765, or the Truth in Lending Act, all lenders are required to provide full transparency regarding the cost of credit. Before a loan is consummated, the OLA must provide a Disclosure Statement containing:
- The cash price or amount to be loaned.
- Down payments or credits (if any).
- All finance charges (including interest, service fees, and processing fees) expressed in Philippine Pesos.
- The Effective Interest Rate (EIR).
- The schedule of payments and total amount to be paid.
How to Verify if an App is Legitimate
To ensure safety and legal protection, borrowers should follow these verification steps:
- Check the SEC List: Visit the "Lending Companies and Financing Companies" section on the SEC website to see the "List of Recorded Online Lending Platforms."
- Verify the CA Number: Legitimate apps usually display their Certificate of Authority (CA) number in their "About Us" section or at the bottom of their official website.
- App Store Scrutiny: Read reviews and check the developer information. Be wary of apps that request excessive permissions (e.g., access to your entire contact list or social media accounts).
Remedies for Violations
If an online lending app engages in harassment, unauthorized data access, or operates without a license, borrowers may file formal complaints with the following agencies:
- SEC Corporate Governance and Finance Department: For licensing and unfair collection practice issues.
- National Privacy Commission (NPC): For data privacy breaches and "debt shaming."
- Bangko Sentral ng Pilipinas (BSP): If the lending entity is a bank or a bank-affiliate.