Business

SEC cancels FCash Global Lending’s license

The Securities and Exchange Commission has revoked the certificate of authority granted to FCash Global Lending Inc. to operate as a lending company for unfair debt collection practices.

In an order dated August 25, the SEC’s Corporate Governance and Finance Department (CGFD) found FCash, which operates online lending platforms Fast Cash and Fast Cash Loan, liable for multiple violations.

According to the SEC, FCash has made multiple attempts to collect loan payments by contacting or threatening persons other than those that the borrower has identified as guarantors or co-makers.

FCash was also found to have sent messages threatening borrowers with estafa charges, complaints before the National Bureau of Investigation, and service of writ of garnishment or writ of attachment.

Aside from this, FCash threatened to report borrowers to their respective employers and used abusive words when talking to them over the phone.

The SEC also noted how FCash took advantage of borrowers’ lack of awareness of legal terminologies to compel them to pay their loans.

FCash has had one of the most number of complaints for collection harassment since 2017, according to the SEC.

“[The SEC] has consistently reminded the public to be cautious and mindful of the terms and conditions of a loan contract before consenting to the same, especially the interest rates, penalties, and other charges,” the SEC said.

“While the Commission fully supports the growth of lending and financing companies and recognizes the significant role they play in terms of financial inclusion and access to credit, it shall remain relentless and steadfast in its mandate to crack down abusive lending companies that prey on the desperate and vulnerable,” It pointed out.

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