What are the penalties for unfair collection practices?

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The penalties for engaging in unfair collection practices under SEC MC 18 are stringent and are designed to deter such behavior among Lending Companies (LCs) and Financing Companies (FCs). These penalties escalate with each subsequent offense:

First Offense:

  • LCs: A penalty of ₱25,000
  • FCs: A penalty of ₱50,000

Second Offense:

  • LCs: A penalty of ₱50,000
  • FCs: A penalty of ₱100,000

Third Offense: For both LCs and FCs, the penalties become more severe. The offender may face any combination of the following:

  • A fine of not less than twice the amount imposed for the second offense, up to a maximum of ₱1 million.
  • Suspension of lending and financing activities for a duration of 60 days.
  • Revocation of the Certificate of Authority to operate as an FC or LC.

These penalties aim to enforce compliance and ensure fair practices within the lending and financing sector, with the ultimate goal of protecting consumers and maintaining the integrity of financial markets.

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CashLoanPH Changed status to publish 14/04/2024