This article explains your options when a lending/financing company that is registered with the Securities and Exchange Commission (SEC) engages in fraud, deception, unlawful collection tactics, or other abusive behavior. It covers the legal framework, red flags, documentary strategy, government complaint routes, and civil/criminal remedies, with practical checklists and sample pleadings language.

1) What “SEC-registered” means—and why scams still happen

Being “SEC-registered” means the entity has complied with corporate registration and (for lending/financing companies) holds a Certificate of Authority to operate under the Lending Company Regulation Act (LCRA) or the Financing Company Act (FCA). Registration does not guarantee lawful conduct. If a registered company commits scams—e.g., misrepresents fees, locks you into abusive terms, or harasses your contacts—there are administrative, civil, and criminal remedies you can use.

2) Core legal building blocks

Lending/Financing regulation.
- LCRA (R.A. 9474) for lending companies; FCA (R.A. 8556) for financing companies. These require a Certificate of Authority, mandate disclosures, and penalize violations.
- SEC issues Memorandum Circulars that, among others, prohibit unfair debt collection practices (e.g., threats, profanity, shaming, contacting people unrelated to the debt), set disclosure standards (APR, fees, payment schedule), and regulate online lending platforms (OLPs).
Financial Products and Services Consumer Protection Act (FCPA) (R.A. 11765). Establishes consumer rights (to equitable treatment, disclosure, protection against harassment), empowers regulators (SEC for non-bank lenders) to investigate, penalize, and order restitution.
Civil Code and jurisprudence on interest and penalties. Courts can strike down unconscionable interest and liquidated damages/penalty charges, reduce them to reasonable levels, and apply legal interest (6% p.a.) on monetary awards (per Nacar v. Gallery Frames). Philippine jurisprudence has repeatedly voided exorbitant monthly interest as contrary to morals/good customs/public policy.
Data Privacy Act (DPA) (R.A. 10173). Outlaws unauthorized processing, over-collection, and public disclosure of personal data; provides for damages and administrative fines. Critical when OLPs scrape your contacts/photos or dox you.
Revised Penal Code & Special Laws. Depending on facts: estafa, grave threats, grave coercion, libel, unjust vexation; Cybercrime Prevention Act (R.A. 10175) if done online; possible Access Device or Anti-Photo/Video Voyeurism violations if applicable.
Usury Law & Central Bank Circular 905. No fixed usury ceiling, but courts still void unconscionable rates and abusive charges.

3) Typical scam/abuse patterns—and how the law views them

Pattern	Why it’s unlawful	Primary remedies
Bait-and-switch APR/fees (advertised rate ≠ actual)	Deceptive practice; failure of disclosure	SEC complaint (admin penalties, restitution), civil rescission/damages
Forced “processing fees” or add-ons deducted upfront	Unfair/hidden charges; unjust enrichment	SEC action; civil refund; small claims
Contact-list harvesting; public shaming	DPA breach; unfair debt collection	NPC complaint; SEC sanctions; civil & criminal actions
Threats, doxxing, profanity in collections	Unfair collection; possible crimes	SEC; PNP/NBI cybercrime; protection orders if threats persist
Rollovers that trap borrowers	Unconscionable interest/penalties	Court reduction/nullification; restitution
Unauthorized debits from e-wallets/cards	Unauthorized processing; access device fraud	Bank/e-wallet dispute; BSP/issuer chargeback; criminal complaint

4) Evidence first: build a clean, admissible file

Create a “case kit.”

Government IDs; proof of income (if provided); loan contract, payment ledger, screenshots (ads, in-app screens), text/ chat logs (preserve metadata), call recordings (if any—note consent laws), receipts/transaction IDs, bank/e-wallet statements, and witness statements.
Data map: what personal data the app accessed (contacts, photos, location) and when.
Timeline: dates of loan offer, disbursement, collection calls, threats, payments.
Computation sheet: amount borrowed vs. amount actually received (after deductions), payments made, and effective APR.

Tip: Export chats and phone logs to PDF; email them to yourself to create immutable timestamps. Keep originals on a read-only drive.

5) Administrative remedies (fastest leverage)

A. File a complaint with the SEC (for lending/financing/OLP conduct)

Grounds include unfair collection, misrepresentation, excessive/hidden charges, operating beyond authority, and violations of SEC rules and the FCPA.

What to ask for:

Cease-and-desist against abusive acts;
Administrative fines and revocation/suspension of the Certificate of Authority if warranted;
Restitution/refund or recalculation at a lawful rate;
Order to delete unlawfully collected personal data and to halt further processing.

SEC complaint pack: Letter-complaint + ID + contract + screenshots + call logs + computation sheet + data-privacy narrative. Include your desired outcome (refund, rate reduction, deletion of data, apology/commitment).

B. File a complaint with the National Privacy Commission (NPC) (for data abuses)

Grounds: unlawful processing, over-collection (e.g., scraping entire contact lists), unauthorized disclosure (e.g., group texts smearing you), failure to secure data, and failure to honor data subject rights.

What to ask for:

Cease data processing, erasure/rectification, access logs, and administrative fines; damages via court separately.

NPC pack: Complaint + proof of app permissions/behavior, sample harassing messages sent to contacts, list of affected persons, and your data-subject request history (if you sent one).

C. Coordinate with PNP/NBI Cybercrime for criminal acts

Bring your evidence kit. Ask for inquest/pre-charge assistance for estafa, grave threats, libel, unjust vexation, cybercrime offenses, or access device fraud. Request preservation of platform data (subpoena to telcos/e-wallets if needed).

6) Civil remedies (get your money and your name back)

A. Rescission/Nullity & Damages

Unconscionable interest/penalties can be nullified; courts typically enforce only the principal (less payments) plus 6% legal interest and reasonable charges actually agreed and proven.
Claim actual damages (payments, bank charges, lost wages from harassment), moral and exemplary damages for abusive conduct, and attorney’s fees.

B. Injunctions/Protection

If harassment is ongoing, seek a temporary restraining order (TRO)/preliminary injunction to stop shaming, auto-debits, or data processing.
If threats target women or children in domestic contexts, explore VAWC protective remedies (if applicable to relationships covered by law).

C. Small Claims Court (speed over complexity)

For straightforward refunds/over-collections within the monetary threshold (currently up to ₱1,000,000), you can file without a lawyer using the Supreme Court’s Small Claims Rules. Attach your computation sheet and proof; ask for refunds/recomputation and damages where allowed.

7) Criminal remedies (punish fraud and harassment)

Estafa (deceit causing you damage), libel (public shaming), grave threats/coercion, unjust vexation, and cybercrime variants (if online).
For unauthorized transactions, consider charges under access device and anti-cybercrime provisions in addition to estafa.
Criminal cases can proceed alongside SEC/NPC actions and a civil claim for damages (reserve civil action or file separately; mind procedural rules).

8) Special focus: Online lending apps (OLPs)

Permissions & data minimization. Apps should only access data necessary to provide the loan. Contact-list scraping to pressure repayment is a red-flag and typically violates DPA and SEC rules on fair collection.
Platform remedies. Report abusive apps to Google Play/App Store and include SEC/NPC complaint numbers—stores take down repeat offenders.
Account safety.
- Revoke app permissions; change device/app passwords; enable two-factor authentication.
- For auto-debit arrangements, cancel the authorization in writing with both the lender and your bank/e-wallet; dispute any unauthorized debits through your issuer’s chargeback/dispute channel.

9) Strategy: Quick wins vs. long game

Immediate (0–7 days)

Freeze further harm: revoke app permissions, change passwords, cancel auto-debits.
Send a Data Subject Request (DPA) demanding: (i) source of your data; (ii) purposes and recipients; (iii) erasure of unlawfully collected data; (iv) cease and desist from contacting third parties.
Send a Demand & Notice of Dispute to the lender: request recomputation, refund of illegal charges, and stop to harassment, citing FCPA, DPA, and SEC rules.

Near-term (1–4 weeks)

File SEC and NPC complaints with your evidence kit.
If money was taken without authority, file disputes with your bank/e-wallet and PNP/NBI complaint for unauthorized access/estafa.
If sums are clear and within threshold, prepare a Small Claims case.

Long game (1–12 months)

Pursue civil damages and/or criminal prosecution if settlement fails.
Use SEC/NPC resolutions (if favorable) as persuasive support in civil cases.

10) How courts fix abusive loans (what outcomes look like)

Recomputation: Principal less payments = balance; strip out unconscionable interest/penalties; apply 6% legal interest from judicial demand or when the amount becomes due (court-determined).
Void penalty clauses that shock the conscience (e.g., multi-fold monthly penalties or stacked “collection fees”).
Damages for humiliation, anxiety, and reputational harm from public shaming; exemplary damages to deter similar acts.

11) Practical checklists

Documents to attach (SEC / NPC / court)

Valid ID; Proof of authority if filing for someone else
Corporate documents if you have them (SEC name, app name, screenshots of Certificate of Authority display if any)
Contract, e-mails, SMS, chat logs, call logs/transcripts
Ledger/receipts; bank/e-wallet statements; auto-debit mandate (if any)
Evidence of harassment (texts to your contacts, social posts)
Device permission screenshots and app version/build number
Your computation sheet (principal vs. charges vs. payments)

Computation sheet (skeleton)

Amount borrowed (A)
Less: upfront deductions/fees (list) = Net disbursed (B)
Payments made to date (C)
Claimed interest/penalties/fees (list, with dates and rates)
Your position: interest rate reasonable? penalties void?
Balance by borrower’s recomputation = A – C, plus legal interest only

12) Template language you can adapt

A. Data Subject Request (DPA)

I am exercising my rights under the Data Privacy Act. Please provide, within 15 days, (1) the specific personal data you processed, (2) the purposes and legal bases, (3) recipients to whom my data was disclosed, and (4) the sources of my data. I also demand erasure of contacts and other data not necessary for my loan, and that you cease contacting my relatives, friends, employer, or any third party about my account. Confirm in writing your compliance and provide evidence of deletion.

B. Demand/Notice to Lender

This serves as my Notice of Dispute and Demand. Your imposed charges and collection tactics violate the FCPA, SEC rules on fair collection, and jurisprudence on unconscionable interest. I demand: (1) recomputation removing unconscionable interest/penalties; (2) refund of illegal charges; (3) cessation of harassment and third-party disclosures; and (4) written confirmation within five (5) days. I reserve my rights to sue for damages and to pursue SEC/NPC/criminal action.

13) Settlement pointers (without waiving claims)

If negotiating, insist the agreement (a) confirms deletion of third-party data and cessation of harassment, (b) reflects a clean recomputation (principal less payments; lawful interest), (c) waives disputed penalties/fees, and (d) avoids gag clauses that bar you from reporting unlawful acts to regulators.
Pay only through traceable channels; avoid cash hand-offs. Get a “Full and Final Settlement” acknowledgment.

14) Frequently asked questions

Q: They’re registered with the SEC. Can the SEC still stop them? A: Yes. The SEC can investigate, fine, suspend, or revoke a Certificate of Authority and issue cease-and-desist or show-cause orders for violations, even against registered entities.

Q: There’s no usury law cap—so am I stuck with the rate? A: No. Courts routinely strike down unconscionable interest and reduce penalties; they may apply 6% legal interest instead.

Q: They messaged my boss and my entire contact list. A: That likely violates the Data Privacy Act and SEC fair collection rules. File with NPC and SEC, and consider damages for reputational harm.

Q: I already paid more than I borrowed. A: Demand recomputation and refund of illegal charges. If simple and within the small-claims threshold, consider filing in small claims court.

Q: They keep auto-debiting my e-wallet. A: Cancel the mandate in writing with the lender and your bank/e-wallet; file a transaction dispute; consider SEC/NPC complaints and injunctive relief.

15) Smart prevention going forward

Borrow only from lenders that publish their SEC Company Registration No. and Certificate of Authority and provide clear, pre-disbursement APR/total cost.
Deny unnecessary app permissions. Use a dedicated device profile if you must install an OLP.
Avoid rollovers; keep a written payoff plan; document everything.

16) When to get a lawyer

Large exposure, complex facts, multiple victims, or you need injunctions or criminal complaints drafted.
You’re being sued—get counsel to raise unconscionability and procedural/contract defenses (e.g., defective disclosures, invalid penalty clauses, lack of authority of signatory, improper venue, abusive arbitration clauses).

17) Quick roadmap (one-page)

Secure accounts → 2) Demand & DPA request → 3) File SEC/NPC (attach kit) → 4) Dispute auto-debits/chargebacks → 5) Small claims/civil → 6) Criminal if threats/fraud → 7) Negotiate settlement with deletion + refund → 8) Monitor compliance.

Final note

This article gives a practical, rights-forward playbook rooted in Philippine law for dealing with abusive behavior by SEC-registered lending/financing companies. Facts matter: tailor the strategy to your documentation, amounts involved, and risk of ongoing harm. For high-stakes cases or active threats, involve counsel and law enforcement immediately.