May 22, 2024

The Securities and Exchange Commission has revoked the Certificate of Incorporation and Certificate of Authority (CA) of SunCash Lending Investors Corp. to operate as a lending company for employing unfair debt collection practices and failing to properly disclose its online lending platforms (OLPs).
In an order dated Feb. 6, the Financing and Lending Companies Division (FLCD) of the SEC Corporate Governance and Finance Department (CGFD) found that SunCash Lending has committed several violations of SEC Memorandum Circular 18, s. 2019, which provides the Prohibition on Unfair Debt Collection Practices of Financing Companies and Lending Companies.
The FLCD found SunCash Lending to have threatened borrowers with shaming on social media by publishing their names as scammers and warning the people in their contact lists that they are scammers, among others.
MC 18 prohibits the use of threats, insults, obscenities, profane language, and any false representations or deceptive means to force any individual to pay their debts. It also prohibits the public disclosure of a borrower’s personal information and contacting people in the borrower’s contact list.
SunCash Lending was also found to have violated MC 19, s. 2019, which provides the disclosure requirements on advertisements of financing companies and lending companies and reporting of OLPs.
Further, SunCash Lending was found to have committed several violations for its failure to pay its annual fees within the prescribed period, non-filing of interim financial statements for the first semester of 2020 and the second semester of 2019 and 2020, as well as the belated filing of its 2019 audited financial statements.
“The CGFD holds that the number, nature, and gravity of SunCash Lending’s violations to MC 18 and MC 19, and its continuous non-compliance with MC 19, and other reportorial and compliance requirements show SunCash Lending’s blatant disregard to the Commission. Hence, the revocation of SunCash Lending’s Certificate of Authority is warranted,” the order read.
SunCash Lending was previously the subject of a search warrant implemented through a joint operation by the CGFD, SEC Enforcement and Investor Protection Department, and the Philippine National Police Anti-Cybercrime Group in December 2022.
The operation resulted in the arrest of 83 company directors, officers, agents, and employees, as well as the discovery of the unauthorized operations of several online lending applications, including that of SunCash Lending.
SEC has also advised the public against dealing with JCRG Gold Trading, Mega Ultra Cash Trading, and Cash Table Online Solution due to unauthorized solicitation of investments. – Press release