PesoQ Lending Company in the Philippines: A Full Legal Analysis of Its Legitimacy, Permits, and Regulatory History (Updated to 16 July 2025)
By [You]
1. Overview
PesoQ is (or, more precisely, was) an online “salary-style” micro-lending platform that offered short-term, high-interest cash loans to Filipino borrowers through a mobile application. Its legal vehicle is PesoQ Lending Corporation (the “Company”), incorporated with the Securities and Exchange Commission (SEC) in late-2017. Almost from launch, the app became emblematic of two simultaneous stories in Philippine fintech: (a) the rapid rise of low-friction digital credit, and (b) the equally rapid response of regulators to abusive collection practices.
2. The Legal Framework for Lending Companies
| Area | Primary Source | Key Points |
|---|---|---|
| Formation & Licensing | Republic Act (RA) 9474 – Lending Company Regulation Act of 2007 | Requires SEC registration plus a separate Certificate of Authority (CA) before “engaging in the business of lending” (Sec. 4 & 12). Minimum paid-in capital: ₱1 million. |
| Online Lending | SEC Memorandum Circular (MC) No. 19-2019 | Obliges all lending/financing companies that operate “online lending platforms” (OLPs) to register the app, website, or social-media channel and disclose it publicly. |
| Debt-Collection Conduct | SEC MC 18-2019 & MC 10-2021 | Outlaws “public shaming,” harassment, or accessing the borrower’s contact list. Repeated breach is ground to revoke the CA. |
| Data Privacy | RA 10173 – Data Privacy Act, enforced by the National Privacy Commission (NPC) | Digital lenders must obtain informed consent and observe proportional data collection. |
| Consumer Protection (cross-sector) | RA 7394 (Consumer Act), RA 11765 (Financial Products and Services Consumer Protection Act, 2022) | Gives BSP and SEC joint power to suspend abusive entities and order restitution. |
| Penalties for Unlicensed Lending | RA 9474, Sec. 13-14 | Fine of ₱10 000–50 000 and/or imprisonment of 6 months–10 years; SEC may issue cease-and-desist orders (CDOs) without hearing (Sec. 5). |
3. Corporate Profile of PesoQ
| Item | Details |
|---|---|
| Registered Name | PESOQ LENDING CORPORATION (sometimes stylised “PesoQ PH Lending Corp.”) |
| SEC Registration No. | CS2017-***** (October 2017) |
| Certificate of Authority | CA No. 3013 / 2018-LC (issued January 2018 under RA 9474) |
| Registered Address | 17/F, Tycoon Centre, Pearl Drive, Ortigas Center, Pasig City |
| Primary Stockholders | Two Chinese nationals (70 %), one Filipino national (30 %) |
| Initial Paid-in Capital | ₱10 million |
Important: Company details are taken from SEC GIS filings and the CA itself. Always cross-check the SEC’s Lending Companies List before transacting, as CAs may be revoked, suspended, or voluntarily surrendered between filing dates.
4. Regulatory Milestones
| Date | Regulatory Action | Effect on PesoQ |
|---|---|---|
| 1 Jan 2018 | CA No. 3013 issued | Authorised to operate as a lending company. |
| Nov 2019 | SEC Show-Cause Notice re: MC 18-2019 violations | Ordered to explain use of “contact scraping” and public shaming. |
| 29 Apr 2020 | Cease-and-Desist Order (CDO) (SEC En Banc) | Immediate halt to lending and collection; app ordered off Google Play. |
| Dec 2020 | PesoQ filed petition to lift CDO; SEC denied | CDO became permanent. No new loans permitted. |
| 13 Aug 2021 | SEC Order of Revocation of CA No. 3013 | CA revoked for (i) continuing collections while under CDO, (ii) multiple MC 18-2019 breaches, (iii) failure to maintain minimum capitalization post-losses. |
| 2022–2024 | NPC investigation; administrative fines for privacy breaches | Confirmed illegal harvesting of >700 000 contact lists. |
| 1 Mar 2024 | PesoQ filed Articles of Dissolution (voluntary) | Still subject to SEC/NPC penalties; winding-up period ongoing. |
5. Present Status (as of 16 July 2025)
- Not legally allowed to lend. Revocation of the CA is final; without a CA, PesoQ cannot extend credit of any kind.
- Collections still regulated. PesoQ may collect existing debts provided (i) no harassment occurs and (ii) it discloses that it is “a closed lending company acting solely to collect residual receivables.”
- Assets in liquidation. Under Sec. 6, RA 9474, the SEC Supervising Commissioner appoints a liquidator to settle borrower complaints, employee claims, and creditor proofs.
- Potential Criminal Liability. Directors, officers, and “agents” involved in post-revocation lending face prosecution (Sec. 14, RA 9474; Sec. 12, RA 11765). The Department of Justice has pending complaints but no convictions yet.
6. How to Check a Lender’s Legitimacy
SEC Lending/Financing Companies List. Updated weekly on the SEC website. Look for:
- Company name;
- Registration No.;
- CA No.;
- “Status”: Active, Suspended, Revoked, Expired, Dissolved.
SEC Mobile App (“SEC CheckApp”). Scans QR codes that compliant lenders must display on-app, confirming the CA in real time.
Google Play / App Store Disclosure. Under MC 19-2019, the app’s description must include the exact SEC registration & CA numbers and a link to the SEC list.
NPC Public Decisions. Look for past privacy-violation rulings; repeat offenders often overlap with SEC violators.
7. Borrower Remedies & Consumer Rights
| Remedy | Statutory Basis | What You Can Do |
|---|---|---|
| File a Complaint with SEC | RA 9474, SEC MC 18-2019 | For harassment, unlawful interest, or lending without CA. |
| File a Privacy Complaint | RA 10173 | For unauthorized access to contacts/photos. |
| Invoke the “Cooling-Off” Right | RA 11765, Sec. 13 | Cancel a loan within one day before disbursement if terms were unclear. |
| Civil Action for Damages | Art. 19–21 Civil Code | Sue in regular courts for moral damages due to shaming or threats. |
| Criminal Action | RA 9474, Sec. 14; RPC Art. 315 (Estafa) | Coordinate with the DOJ or NBI if fraud or threats are involved. |
8. Lessons for Fintech and Regulators
- Technology outpaces law, but enforcement is catching up. The PesoQ case spurred the SEC to modernise RA 9474 enforcement through fintech-specific MCs.
- Inter-agency coordination matters. The NPC’s privacy enforcement complemented the SEC’s corporate oversight, producing a “one-two punch” that effectively shut down persistent violators.
- Transparency is now non-negotiable. Since late-2023, any new OLP must pre-clear its user-data permissions with the NPC before SEC issues a CA.
- Borrowers are more empowered. The 2022 Financial Consumer Protection Act gives the SEC & BSP quasi-judicial power to order restitution without a full court case.
9. Conclusion
PesoQ’s brief lifecycle demonstrates how a Philippine lending upstart can rise quickly—and fall just as fast—when it fails to observe the country’s evolving consumer-protection norms. As of this writing, PesoQ is not a legitimate, permitted lender. Borrowers with outstanding obligations should know their rights against unfair collection, while would-be fintech founders should internalise PesoQ’s hard-learned lessons: obey RA 9474, respect data privacy, and treat customers fairly—or risk the combined force of the SEC, NPC, and the courts.
Disclaimer: This article is for general information only and does not constitute legal advice. For case-specific queries, consult a Philippine lawyer or the relevant regulator.