The SEC flagged off three online lending firms, warning the public about Lifier

The Securities and Exchange Commission (SEC) has warned the public about the illegal activities of three online lenders and an unauthorized investment firm.

In an advisory on Thursday, the SEC instructed the three online lending operators to suspend their activities without the necessary commission approval and to stop their abusive collection practices.

In an order issued on April 26, the commission instructed N Bank Golden Cash, Help Cash and Grace Cash to refrain from engaging, operating, promoting or facilitating any lending activity or transaction until they have obtained the required registration and license. Commission.

“[T]The commission found that the continued activities of Golden Cash, Help Cash and Grace Cash constitute a clear violation and should be punished, “the SEC said, adding that they were involved in and operating the lending business without the required license from the regulator. .

The commission has instructed online lending operators to stop offering and advertising their lending business through the internet or any other medium and to remove such content.

The SEC ruled that the three lenders were not registered with the commission as corporations.

“Further investigations by the SEC Enforcement and Investor Protection Department (EIPD) have revealed that online lending operators are employing unfair collection practices,” according to the advice.

The EIPD reports that online lending operators are harassing, threatening, publicly humiliating and imposing hidden charges and additional processing fees on their respective borrowers.

“The work of these unregistered online lending operators is to illegally lend and lend to the public, to charge high interest rates and to defraud lenders through defamation and even defamatory language সংগ্রহ there is no place in a society governed by and positive law Comply, ”the SEC said.

In a separate consultation, the SEC warned the public about Lifier Philippines, an unauthorized investment firm, to entice the public to invest in companies without a license or registration.

The Commission reported that the entity was not registered as a corporation or partnership and was not authorized to request investment, as it had not previously secured registration or license.

“Also, since Leefire is promising its investors to get its native cryptocurrency ‘LFC Coin’ in an apparent initial coin offering (ICO), it is appropriate to remind the public again that an ICO is the first sale and a new issue. Virtual currency to the public is usually intended for startup companies to raise capital or to finance independent projects, “the SEC said.

The commission said the unauthorized entity wanted to use the money collected from the public in a promise of profit to finance its alleged project.

“Based on the content of the post found online, Leefire is offering the public an investment through a mobile application available in the Google Play Store. By signing up with a personal mobile number, investors will be entitled to a cash bonus of P120 that can be used to purchase products of the corresponding level.” The advice says.

The SEC said any salesman, broker, dealer or agent involved in selling or persuading people to invest in Lifair could be prosecuted and criminally charged.

Punishment includes a maximum P5 million fine or imprisonment for up to 21 years.

“The public is advised to refrain from investing in or stop investing in any investment project proposed by Lifair Philippines or any person or group accused on its behalf, and to exercise caution in dealing with individuals or groups of individuals requested for investment. In favor of this, ”the commission added. – Luisa Maria Jacinta c. Jackson