I. Why verification matters

In the Philippines, “lending” and “financing” are regulated activities. A business that offers loans to the public (or to a defined market) may be required to register with the Securities and Exchange Commission (SEC) and—depending on its structure and activities—secure additional registrations, permits, and compliance obligations. Verifying a lender’s legal status protects borrowers from:

Illegal lenders and “loan sharks” operating outside regulatory oversight
Abusive collection practices and predatory terms
Fraud (identity theft, fake loan approvals, advance-fee scams)
Difficulty enforcing rights because the entity may be untraceable or improperly organized

Verification is also relevant if you are a co-borrower/guarantor, an employer receiving wage deduction requests, or a merchant partnering with a lender.

II. Know the regulator and the regulated entities

A. SEC registration vs. SEC “license”

SEC registration generally refers to the company being duly organized and recorded with the SEC (e.g., as a corporation or partnership). SEC licensing/authority refers to being authorized to operate as a regulated entity, such as a lending company or financing company.

A lender can be:

A Lending Company (organized under the Lending Company Regulation Act)
A Financing Company (organized under the Financing Company Act)
A Cooperative (typically regulated by the Cooperative Development Authority, CDA) that extends loans to members (and within allowed scope)
A Bank / quasi-bank / NBFI with quasi-banking authority (regulated by the Bangko Sentral ng Pilipinas, BSP)
A pawnshop (generally BSP-regulated)
An “online lending app” operator (often a lending/financing company, but not always—verification is crucial)

Key point: A business may be SEC-registered as a corporation yet not licensed to operate as a lending or financing company. You need to check both.

III. Step-by-step: How to verify a lending company’s SEC registration and authority

Step 1: Get the exact legal identity of the lender

Before checking any database, obtain the lender’s official name and details from documents or the app/website:

Full registered corporate name (not just the brand/app name)
SEC registration number
Certificate of Authority (CA) number (if they claim to be a lending/financing company)
Principal office address
Contact details (landline, email, official website)
Name of the parent company (if the app is operated by another entity)

Practical tip: Brand names can be misleading. Many apps are operated by a different corporation with a different name.

Step 2: Verify SEC registration (existence as a legal entity)

A legitimate SEC-registered entity should be able to provide, upon request or through its disclosures:

SEC Certificate of Incorporation (or Certificate of Registration for partnerships)
Articles of Incorporation and By-Laws (for corporations)
Latest General Information Sheet (GIS) (lists directors/officers and address)

What to look for:

The name on the certificate matches the name on the loan contract/app disclosures.
The SEC registration number is consistent across documents.
The principal office address is specific and not suspiciously vague.

Red flags:

They refuse to provide any SEC details.
The name on the contract differs from the name in the app/website.
Documents show obvious inconsistencies (different registration numbers, altered layouts, missing SEC markings).

Step 3: Verify that it is authorized as a lending company or financing company

If the entity claims to be a lending/financing company, it should have a specific SEC authority to operate as such. Verification involves checking:

Whether the entity appears on the SEC’s lists/directories of registered/authorized lending or financing companies, or
Whether the SEC has issued advisories warning the public about the entity.

What an authorized lender typically holds:

A Certificate of Authority to operate as a lending company or financing company
Compliance with SEC reportorial requirements (e.g., filings, audited financial statements where required)

Red flags:

They say “SEC registered” but do not state they are “licensed/authorized to operate as a lending/financing company.”
Their disclosures use vague phrasing like “partnered with an SEC-registered company” without identifying the actual licensed operator.

Step 4: Check if the lender is actually under a different regulator

Some entities lending money are not primarily SEC-licensed lending/financing companies:

Banks and BSP-supervised institutions: verify with BSP (and the bank’s official channels).
Cooperatives: verify with CDA (and confirm membership/loan scope).
Pawnshops: verify with BSP and local permits.

If the business is presenting itself as a “lending company” but is actually a different entity type, you should treat that as a serious red flag unless properly explained and documented.

Step 5: Confirm local permits and business legitimacy

Even if SEC-registered and authorized, the company must generally have:

Mayor’s/Business Permit (LGU)
BIR registration (with receipts/invoicing compliance)
A real office address and reachable customer support

Practical checks:

Ask for the business permit and confirm the address exists (and matches the permit).
Confirm that the company issues proper receipts and has clear terms and conditions.

IV. Special considerations for online lending platforms and mobile apps

A. Identify the “operator” behind the app

Online lending apps sometimes operate through:

A licensed lending/financing company, or
A technology company marketing a product “powered by” a licensed entity, or
An unlicensed operator using a shell company’s name

Minimum expectation: The app should clearly disclose the legal entity that is granting the loan and its SEC authority.

B. Check contract and disclosures inside the app

Within the loan agreement and disclosures, confirm:

True lender’s registered name (not just the app name)
Interest rate, fees, penalties, and computation method
Data privacy disclosures and consent mechanics
Collection practices and contacts

Red flags in apps:

Requests for excessive permissions unrelated to lending (contacts, photos, call logs) without clear justification
Threats to contact your entire contact list
“Processing fee” demanded upfront before release of loan proceeds
No accessible copy of the loan agreement or disclosure statement

V. How to spot fake “SEC registration” claims

Fraudsters often misuse the phrase “SEC registered.” Common tactics:

Using a real company’s name but no relation to the app
Showing a certificate screenshot that is altered or belongs to a different entity
Claiming “registration” as if it were a “license”
Using confusingly similar names to legitimate lenders
Operating through social media with no verifiable office, permits, or official email domains

Countermeasure: Always match the name across (a) the contract, (b) the entity’s official documents, and (c) regulator records.

VI. Legal framework and regulatory context (Philippines)

A. Core laws and rules (high level)

In Philippine context, regulation typically involves:

SEC supervision of lending and financing companies, including registration, authority to operate, and reportorial compliance.
Consumer protection standards affecting disclosures, fair dealing, and complaint handling (depending on the nature of the institution).
Data Privacy Act obligations regarding collection, processing, and sharing of personal data.
Anti-usury reality: While the old Usury Law ceilings have been effectively suspended for most lenders, lenders are still subject to general principles against unconscionable or iniquitous interest, and regulators may act against abusive terms and practices under applicable rules and consumer protection standards.

B. Distinguish “interest,” “service fees,” and “other charges”

Some lenders advertise low interest but impose heavy charges as:

Service fees
Processing fees
Convenience fees
Disbursement fees
Late fees and penalty interest

Verification is not only about licensing—borrowers should also verify true cost of credit by reviewing total payments, effective rates, and fees.

VII. What proof a legitimate lending/financing company should be able to produce

If you are transacting with a lender, it is reasonable to request:

SEC registration details (certificate/number)
Certificate of Authority (or equivalent proof of authority) to operate as a lending/financing company
Complete written loan documentation including disclosures
Complaint channels and office contact information
Privacy notice and proof of lawful basis for data processing

Refusal to provide basic corporate identity and authority information is a major risk indicator.

VIII. If the company appears unlicensed or suspicious

A. Protect yourself immediately

Do not provide additional personal information (IDs, selfies, OTPs, banking credentials).
Do not pay “release fees” or “processing fees” upfront for supposed loan releases.
Save evidence: screenshots, contract copies, chats, payment instructions, collector messages, caller IDs.

B. Consider the appropriate complaint channels

Depending on the entity type and misconduct:

SEC: for unregistered/unauthorized lending/financing activity and related violations.
NPC (National Privacy Commission): for privacy/data misuse, contact-harassment via scraped contacts, or unlawful processing.
PNP/DOJ: for extortion, threats, identity theft, fraud, or cybercrime-related conduct.
LGU: for businesses operating without permits.
BSP/CDA: if the entity is actually within those jurisdictions.

C. Debt context: be careful with “settlement under pressure”

If collection practices involve threats, shaming, or contacting unrelated third parties, document everything. Even where a debt is valid, collection must stay within lawful bounds, and harassment or privacy violations can trigger regulatory and legal exposure.

IX. Practical checklist (quick reference)

A. Basic identity checks

Exact registered name matches contract and app disclosures
SEC registration number provided and consistent
Principal office address is specific and verifiable
Official contact channels exist (not just messenger accounts)

B. Authority checks

Proof of authority to operate as lending/financing company (not just “SEC registered”)
Listed in relevant SEC directories/lists (when available)
No regulator advisory warning against the entity/brand

C. Transaction safety checks

No upfront “release fee” demanded
Fees and interest fully disclosed and computable
Loan agreement downloadable and readable before acceptance
Data access requests are proportionate and justified

X. Common misconceptions

“SEC-registered” automatically means “licensed lender.” Not necessarily. It may only mean the business exists as a corporation.
“Online app = legal because it’s in an app store.” App store presence is not a regulatory license.
“They have a DTI certificate, so they can lend.” DTI business name registration is not a lending license.
“No physical office is okay.” Legitimate lenders can operate digitally, but they should still have a lawful principal office address and accountable corporate identity.

XI. Bottom line

To verify a lending company in the Philippines, confirm (1) SEC registration (legal existence) and (2) SEC authority to operate as a lending or financing company (regulatory permission)—and then validate the lender’s real-world legitimacy (permits, documentation, disclosures, and lawful practices). Many scams exploit confusion between mere registration and true authority; matching the lender’s exact legal name across all documents and regulator records is the most important single safeguard.