The Securities and Exchange Commission (SEC) has cancelled the Certificate of Incorporation and Certificate of Authority  of SunCash Lending Investors Corporation 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 February 6, 2023, the SEC Financing and Lending Companies Division (FCLD) found that SunCash Lending has committed several violations of SEC Memorandum Circular No. 18, Series of 2019 (SEC MC 18), 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,” the SEC said.

SEC 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 SEC Memorandum Circular No. 19, Series of 2019 (SEC MC 19), which provides the Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of OLPs.

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