The Securities and Exchange Commission (SEC) has warned the public against using Magic Peso, an unregistered online lending platform (OLP) operated by Hupan Lending Technology Inc., following the issuance of a cease and desist order.

In an order dated 13 May but released to the press on Monday, the SEC’s Financing and Lending Companies Department (FinLenD) directed Hupan Lending to stop operating Magic Peso and its other declared OLPs—Cashme, Sukiloan, Pesopoly, and Loan Tayo.

The commission said Magic Peso continues to operate despite the moratorium on new OLPs under SEC Memorandum Circular No. 10, Series of 2021. 

"The issuance of the cease and desist order is necessary to prevent fraud, injury, or harm to the public and financial consumers using Magic Peso," the SEC said.

Separately, the SEC has also revoked the corporate registration and lending license of Hi-Fin Lending Inc. for failing to comply with disclosure rules.

Hi-Fin Lending operates the online platforms Peso Wallet and Credit Cash. 

In the same order, the SEC said the company did not disclose WeWill Tech Corp. as one of its third-party service providers, violating the Financial Products and Services Consumer Protection Act or Republic Act 11765.

FinLenD found that Hi-Fin Lending failed to follow a previous directive issued on 8 June 2023, requiring lending and financing firms to submit a list of their third-party service providers.

As a result, the SEC revoked both Hi-Fin Lending’s certificate of authority to operate as a lending company and its primary registration.