SEC revokes lending license of Surity Cash

MANILA, Philippines — The Securities and Exchange Commission (SEC) has revoked the lending license of the operator of online lending platform Surity Cash for its unfair debt collection practices.

The commission cancelled Surity Cash Lending Investors Corp.’s certificate of authority to operate as a lending company and its primary registration for violations of SEC Memorandum Circular 18, Series of 2019 (MC 18), on the prohibition on unfair debt collection practices.

The SEC said the order was issued in response to a number of formal complaints filed with the commission regarding Surity Cash Lending’s abusive collection practices.

From September 2022 to March 2023, the SEC said that multiple complaints against Surity Cash Lending and its online lending platform were filed before the Financing and Lending Companies Department of the commission.

An order dated Jan. 14, 2025 by the department became final and executory after Surity Cash failed to file any appeal or motion for reconsideration within the prescribed period.

According to the SEC, MC 18 prohibits the use of unfair debt collection practices, including the use or threat of use of violence to harm the person, reputation or property of any person; the use of obscenities, insults or profane language; as well as the disclosure or publication of names of borrowers who allegedly refuse to pay debts, among others.

It states that in collecting the amount due them, financing companies, lending firms and their third party service providers must observe good faith and reasonable conduct and refrain from engaging in unscrupulous and untoward acts.

The SEC issued a cease and desist order against Surity Cash Lending in June 2023 “after finding compelling reason to issue a CDO without the necessity of conducting a prior hearing to prevent the respondent from committing unfair debt collection practices, which, if unrestrained, will cause grave or irreparable injury or prejudice to financial consumers.”