Reviewing Abusive Online Lending Activities in the Financial Sector


The online lending industry has witnessed remarkable growth in recent years, offering convenient access to financial services for individuals in need of quick cash. However, the rapid expansion of this sector has also given rise to a concerning number of abusive practices that exploit vulnerable borrowers. Recognizing the gravity of the situation, regulatory bodies such as the Securities and Exchange Commission (SEC) have taken decisive action to halt the operations of specific online lending platforms.

In this review, CashLoanPH aims to shed light on the prevalent abusive practices observed within the lending and financing sector, with a particular focus on the companies affected by the SEC’s intervention.

Abusive Practices in Online Lending

The online lending industry, while providing accessibility and convenience, has unfortunately become a breeding ground for various abusive practices. These exploitative behaviors include imposing exorbitant interest rates, employing hidden fees and charges, engaging in relentless harassment of borrowers, and implementing predatory lending schemes. These practices not only financially burden vulnerable individuals but also perpetuate cycles of debt and financial instability.

SEC Intervention to Curb Abusive Online Lending Activities

Recognizing the urgency to address these systemic issues, the Securities and Exchange Commission has taken a proactive stance by initiating the suspension of operations for several online lending platforms known for their abusive practices. This bold move is aimed at protecting consumers, restoring trust in the online lending industry, and promoting responsible financial practices.

Overview of Suspended Online Lending Platforms

The SEC’s intervention has had a significant impact on various lending and financing companies operating within the Philippines. The following online lending platforms (OLPs) have been affected by the SEC’s suspension:

  1. Surity Cash Lending (Surity Cash)
  2. Populus Lending (PesoPop, PesoCow, NewCash, LuckyLoan)
  3. U-Peso.PH Lending Corporation (UPeso, Pera4U, PeraLending, LoanMoto)
  4. FESL Lending Corp. (Start Loan, Pondo Loan, First Cash)
  5. Philippine Microdot Financing Corp. (Pautang Peso, Borrow Peso, King Loan, Loan Peso, Lendpeso Market, Loan Quick, CashCloud, Cash Star, FreePeso, Going Loans, Peso Network, Red Cash)
  6. Armorak Lending, Inc. (Ayudas, WeLoan)

Consequences of SEC Intervention and Future Outlook

The SEC’s decisive action against abusive online lending platforms sends a resolute message to the industry, emphasizing the urgent need for responsible lending practices. While the suspension of these platforms may inconvenience some borrowers in the short term, the long-term goal is to safeguard consumers and foster a healthier financial landscape. This intervention also serves as a stern warning to other online lending companies, urging them to prioritize ethical practices, transparency, and fair treatment of borrowers.

Furthermore, this intervention underscores the necessity for regulators and industry stakeholders to collaborate in developing robust frameworks that prioritize consumer protection and sustainable lending practices. This can be achieved through implementing stricter lending regulations, enforcing transparent disclosure requirements, and establishing mechanisms to monitor and penalize abusive behavior. By fostering an environment that encourages ethical conduct and responsible lending, the online lending industry can rebuild trust and ensure the financial well-being of borrowers.


The intervention by the Securities and Exchange Commission to suspend the operations of abusive online lending platforms represents a significant step towards curbing exploitative practices in the financial sector. By addressing issues related to exorbitant interest rates, hidden fees, and predatory lending, the SEC aims to restore trust and confidence in online lending. It is crucial for both regulators and industry stakeholders to continue their efforts to promote consumer protection, enforce ethical lending practices, and create a fair and transparent financial ecosystem that benefits all parties involved. Only through such collaborative actions can the online lending industry thrive while prioritizing the best interests of consumers.

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CashLoanPH Changed status to publish 17/07/2023