A significant penalty has been levied against Surity Cash Lending Investors Corp. by the Securities and Exchange Commission, a fine of one million pesos stemming from troubling debt collection practices.
The SEC’s en banc panel determined Surity Cash had broken three key provisions outlined in SEC Memorandum Circular No. 18, Series of 2019 – a set of guidelines specifically designed to prevent unfair and abusive tactics within the lending industry.
The commission made it unequivocally clear that while a harsher penalty, like suspension or revocation of license, wasn’t immediately imposed, such predatory practices are unacceptable and will not be tolerated. The order, dated September 16th, emphasized that aggressive collection methods do not equate to legal or reasonable means of recovering debt.
This ruling serves as a “stern and final warning” to Surity Cash. The SEC cautioned that any future or repeated breaches of MC No. 18, or any other relevant regulations, will be met with far more severe consequences.
Specifically, the SEC found Surity Cash guilty of violating Section 1 of MC No. 18, which explicitly forbids the use of threats, offensive language, and the unauthorized disclosure of a borrower’s private information during the collection process.
Further, the company was cited for a violation of Section 4, related to the late submission of a sworn statement confirming the establishment of a dedicated customer service department – a crucial component for addressing borrower concerns and complaints.
Despite the violations, the SEC has allowed Surity Cash to retain its corporate registration, but with a firm reminder to adhere strictly to all regulatory requirements moving forward.
As of now, Surity Cash Lending Investors Corp. has not responded to inquiries regarding the SEC’s decision.
