SEC warns public to verify online lending apps

By Rjay Zuriaga Castor

The Securities and Exchange Commission-Iloilo urged the public not to rely solely on a company’s SEC registration when dealing with online lending applications and platforms, stressing the need to verify whether a firm also holds a Certificate of Authority to operate as a lending or financing company.

SEC-Iloilo said many fraudulent entities may have SEC registration but remain unauthorized to engage in lending activities because they lack the required secondary license or Certificate of Authority.

The agency explained that primary SEC registration only establishes a corporation’s legal existence, while a Certificate of Authority grants permission to undertake regulated activities such as lending and financing.

“This lending and financing business, especially when operating through online platforms, first needs to be registered with the SEC, have a Certificate of Authority to operate, and be included in the list of accredited online lending platforms or online lending applications,” said Joel Lenaming, Securities Counsel I of SEC-Iloilo.

“It is not automatic that if a lending application registers with the SEC, it can already operate online. The corporation still has additional requirements to comply with. There should be precaution and vigilance in checking these credentials,” he added.

Lenaming also advised the public to verify registration claims, particularly when online lending firms display the SEC logo in advertisements or on their websites.

He noted that registration documents can be altered or falsified and said legitimate companies should instead provide their SEC registration numbers for public verification.

To help consumers verify the legitimacy of companies and lending apps, SEC-Iloilo encouraged the public to use the SEC Check App, available on Google Play and the Apple App Store, or the SEC’s online verification portal.

The SEC also operates the eSPARC system for company registration, while its iMessage platform allows the public to submit concerns or complaints to the commission.  

SEC-Iloilo reported receiving 11 complaints involving collection harassment in 2025 and eight additional complaints as of June 2026.

According to Lenaming, many complainants belong to the middle-income sector and are often victims of lending companies that are either unregistered or operating without a Certificate of Authority.

“Be vigilant. If you are borrowing money, check first whether the company is registered with the SEC. If you have doubts, visit our office because once you click and agree to the terms, you may already be bound by the contract since there is a meeting of minds,” he added.

Lenaming explained that proving harassment cases can be difficult because many complaints involve third-party collectors using anonymous or unregistered phone numbers.

“When reporting, it is important to prove that it is the lending application that is committing the harassment. The problem is that third-party individuals are often involved, using different numbers, and the victim must establish that the number is connected to the lending app,” he said.

“We advise complainants to gather evidence. Allegations alone are not enough. There must be proof that the number is connected to the lending application and that it is the one harassing you,” Lenaming added.

He also observed that some online lending applications simplify or shorten their terms and conditions to encourage users to quickly accept agreements without fully understanding their obligations.

Lenaming said SEC-Iloilo may issue show-cause orders against lending companies with physical offices in Western Visayas if complaints are filed against them.

However, complaints involving online lending companies operating outside the region or exclusively through digital platforms are typically referred to the SEC Central Office for appropriate action.

The SEC has repeatedly warned the public against dealing with unauthorized online lending operators amid rising complaints involving harassment, hidden charges, and data privacy violations linked to some digital lending platforms.