Manila, Philippines – May 29, 2025 – The Securities and Exchange Commission (SEC) of the Philippines has launched an intensified campaign against unregistered digital lending applications, following a sharp increase in consumer complaints related to harassment, hidden fees, and privacy violations.
📈 Over 80 Complaints Filed in April Alone
According to a statement released this morning, the SEC received 84 formal complaints in April 2025, many of which involved unauthorized access to personal contacts, excessive service charges, and threats from collection agents.
“These lending apps operate outside the law. We are fully committed to protecting borrowers from abuse and restoring trust in digital finance,”
– SEC Chair Emilio Aquino
⚖️ Key Actions Taken by the SEC:
- Blocked 21 illegal apps in coordination with Google and Apple.
- Issued cease-and-desist orders to 11 unlicensed operators.
- Published updated guidelines requiring fintech platforms to disclose:
- Ownership details
- Interest computation methods
- Collection procedures
- Announced public listing of legal lending apps on the SEC website for transparency.
🔍 New Requirements for Fintech Lenders
Starting June 2025, all digital lending platforms must:
- Register as a financing or lending company with the SEC
- Obtain a Certificate of Authority to Operate
- Submit quarterly compliance reports
- Use verifiable collection channels
Apps failing to comply may face permanent delisting and criminal prosecution under the Lending Company Regulation Act of 2007.
📱 Advice for Borrowers
The SEC urges the public to:
- Check legitimacy of any app via the SEC’s Lending Companies List
- Avoid apps that request contact list access
- Report abusive collection behavior to sec.gov.ph or via hotline 8888
🧭 What This Means for the Lending Market
- Legal apps like Digido, MoneyCat, and Cashspace are expected to benefit from the SEC’s stricter enforcement as borrower trust shifts to registered providers.
- New players may face higher entry barriers, promoting consumer protection but slowing app proliferation.
- Borrowers should see improved transparency in fees, terms, and data handling starting Q3 2025.
✅ Final Thoughts
The SEC’s decisive action is a positive move for the financial ecosystem in the Philippines, strengthening regulation in a sector that has experienced rapid digital growth but limited oversight.
As fintech lending continues to evolve, trust and regulation will be key pillars to support both innovation and consumer welfare.
This article was written and published by the editorial team at Cash24.ph, based on reports from the SEC and verified Philippine media sources.