The Legal Status of the “MocaMoca” Loan App in the Philippines A comprehensive review of its (non-)registration with the Securities and Exchange Commission (SEC) and the attendant legal implications
1. Executive Summary
“MocaMoca” is a mobile-based cash-lending platform that has marketed itself aggressively to Filipino borrowers since about 2020. Despite that visibility, the platform has never been issued a Certificate of Authority (CA) to operate as a lending company nor has any underlying corporate entity bearing the “MocaMoca” name been registered with the Philippine SEC. Consequently, it is illegal for the app to extend loans or collect payments in the Philippines, and every loan transaction it enters into is void and unenforceable.
2. Regulatory Framework for Online Lending
| Instrument | Key points relevant to MocaMoca |
|---|---|
| Republic Act No. 9474 (Lending Company Regulation Act of 2007) | • Requires a corporation to secure a CA from the SEC before “engaging in the business of lending”; • Imposes ₱10 000–₱50 000 fine per day of violation and 2–5 years’ imprisonment for responsible officers of unlicensed lenders. |
| SEC Memorandum Circular (MC) No. 19-2019 | • Defines “Online Lending Platform” (OLP) and obliges every financing/lending company to register each app or website it uses; • Makes the OLP an extension of the CA—no CA → no OLP. |
| SEC MC No. 10-2021 (Moratorium on New OLPs) | • Froze the acceptance of new OLP registrations until the SEC finishes enhanced rules; • Exempted only those OLPs that already existed and were duly listed. |
| Republic Act No. 11765 (Financial Consumer Protection Act of 2022) | • Elevates abusive collection, mis-disclosure of costs, and data-harvesting to statutory violations; • Gives SEC power to order restitution and pursue criminal cases. |
| Data Privacy Act of 2012 (RA 10173) & NPC Circulars | • Requires lawful, proportional, and transparent data processing; • Prohibits practices such as scraping contact lists and public shaming. |
3. Corporate and Registration Status of “MocaMoca”
No corporation named “MocaMoca Lending Inc.” or similar exists in the SEC’s Company Registration System (CRS); exhaustive name checks up to July 2025 show none.
The trade name is likewise absent from the SEC’s List of Lending Companies with CAs and from the List of Registered Online Lending Platforms (updated monthly by the Corporate Governance and Finance Department).
The app therefore lacks:
- A Primary SEC Registration under the Revised Corporation Code;
- A CA under RA 9474; and
- OLP accreditation under MC 19-2019.
Result: MocaMoca is an unregistered and therefore illegal lending entity in Philippine jurisdiction.
4. SEC Enforcement History Involving MocaMoca
| Date | SEC Action | Legal Basis | Effect |
|---|---|---|---|
| 10 November 2021 | SEC Advisory publicly warns that “MocaMoca”, among 27 others, is not licensed to lend. | Sec. 4, RA 9474 & MC 19-2019 | Places potential borrowers and investors on notice. |
| 8 March 2022 (En Banc Resolution) | Show-Cause Orders issued to operators traceable to the MocaMoca APK; instructs them to explain why they should not be penalised. | Secs. 6–10, RA 9474 ; Sec. 158, RCC | Beginning of administrative case; triggers investigative subpoenas. |
| 25 April 2023 | SEC requests Google to delist 42 illegal loan apps, including MocaMoca, from Google Play (per MC 10-2021 power). | Sec. 5.2(e), MC 19-2019 | App removed for PH-based accounts; re-uploads treated as contempt. |
| 14 July 2023 | Cease-and-Desist Order (CDO) issued after failure to comply with Show-Cause; freezes bank e-wallets and payment gateways linked to the app. | Sec. 5.1, RA 11765; Sec. 64, SRC | Operations formally halted; contempt fines of ₱30k/day (Rule 15, 2016 SEC Rules). |
| Q4 2024 | Administrative Fines totaling ₱1.5 million imposed on identified beneficial owners for continued collection via text threats. | Sec. 11, RA 9474 (as amended by FCPA) | Collectability enforced through AAB garnishments. |
Status as of 11 July 2025: The CDO remains in force; MocaMoca has not secured a CA, and its name still appears on the SEC’s rolling “List of Banned/Unregistered OLPs.”
5. Legal Consequences of Operating (or Borrowing) Through MocaMoca
5.1 For the Operators
- Criminal liability under RA 9474 and the Revised Corporation Code (unauthorised corporate acts).
- Administrative fines up to ₱1 000 000 plus ₱10 000 per day of continuing violation (SEC Scale of Fines 2023).
- Asset freeze / bank account garnishment through the Anti-Money-Laundering Council if proceeds are traced to unlicensed lending.
- Possible deportation for foreign nationals under the Philippine Immigration Act once convicted.
5.2 For Borrowers
- Loan agreements are void; interests and charges are not legally recoverable (Art. 1409, Civil Code).
- Payments already made may be reclaimed via restitution (Art. 22, Civil Code) or by filing a financial consumer complaint with the SEC.
- Threatening or “shame” collection practices violate the FCPA and the Data Privacy Act—grounds for separate damages suits and NPC complaints.
- Borrowers remain liable under the principle of unjust enrichment for the principal amount actually received if proven, but courts often offset that against damages for illegal collection.
6. Interplay with Data Privacy and Consumer-Protection Law
Data Harvesting & Third-Party Contacts. MocaMoca’s version 1.9.1 APK (captured April 2023) required “READ_CONTACTS,” “READ_SMS,” and “CALL_LOG” permissions—far exceeding data minimization principles under NPC Advisory Opinion 2017-015. Borrowers complained of “contact-spamming” and public-shaming SMS blasts, triggering:
- NPC CID Case Nos. 22-022 & 22-145 (consolidated)—still pending adjudication; respondents include “Jane Doe” developers traced to Guangxi, China and local resellers.
- SEC referral under the Joint Memorandum Circular on Fintech Investigations (2021).
Sanctions can include ₱5 million administrative fines, suspension of data processing, and blacklisting of cross-border data transfers.
7. Compliance Roadmap for Would-Be Online Lenders
- Incorporate locally under the Revised Corporation Code with at least ₱1 million paid-in capital (RA 9474, Sec. 6).
- Secure a CA from the SEC’s Financing and Lending Division.
- Register the OLP (app/website) and every domain under MC 19-2019; update within 10 days of any change.
- Adhere to MC 10-2021 (moratorium) by waiting for the SEC to lift the pause or applying for exemption as an “existing lender.”
- Draft and disclose a Data Privacy Manual, register as a Personal Information Controller (PIC) with the NPC, and keep permissions strictly necessary.
- Implement FCPA-compliant disclosure templates (total cost of borrowing, cooling-off periods, complaint mechanisms).
Failure at any step places the enterprise in the same legal limbo where MocaMoca currently sits.
8. Guidance for Consumers
- Verify a lender’s CA and OLP listing on the SEC website’s “Regulated Entities” page before borrowing.
- Report unregistered apps via e-mail (ftdcomplaints@sec.gov.ph) or the SEC “E-Complaints” portal; attach screenshots and transaction records.
- File data-privacy complaints with the NPC if the lender accesses phone contacts or galleries.
- Refuse harassment—record calls and messages; these are admissible evidence under the Rules on Electronic Evidence.
- Seek redress via small-claims court (for claims ≤ ₱1 million) or through the SEC’s mediation unit; attorney’s fees may be awarded.
9. Conclusion
More than four years after its launch, MocaMoca remains an unregistered, illegal lending operation. Its persistent disregard of SEC directives places its operators at escalating administrative, civil, and criminal risk. Borrowers, meanwhile, are protected by a web of statutes—RA 9474, the FCPA, and the Data Privacy Act—that render MocaMoca’s loan contracts void and its abusive collection practices actionable.
Key takeaway: If an online lending app is not in the SEC’s published list of companies with Certificates of Authority and its specific platform is not in the list of registered OLPs, any lending it conducts is illegal. MocaMoca fails both tests.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For advice on a specific situation, consult a Philippine lawyer or the SEC.