Regulator files raps vs Easypeso

Corporate regulator Securities and Exchange Commission (SEC) has filed criminal complaints against the operator of online lending app Easypeso for allegedly using abusive and illegal methods to collect debts from borrowers.

Creditable Lending Corp., along with 173 of its employees, incorporators, officers and beneficial owners, is facing charges for violating consumer protection and privacy laws. 

The SEC stated that the charges were filed on 17 July before the Department of Justice (DoJ) through an inquest proceeding led by the SEC, the National Bureau of Investigation (NBI) and the National Privacy Commission (NPC).

The company was accused of violating the Financial Products and Services Consumer Protection Act, the Data Privacy Act, and the Cybercrime Prevention Act.

Office raided

The complaints stem from a raid on 15 July at Creditable Lending’s office in Pasig City. The operation, led by the NBI and NPC, resulted in the arrest of the company’s employees and the seizure of computers, mobile phones, pre-registered SIM cards, text blasters, and call scripts allegedly used to harass borrowers.

Following the raid, the SEC’s Financing and Lending Companies Division issued a cease and desist order against Creditable Lending and Easypeso, barring them and anyone acting on their behalf from engaging in any lending activity.

Creditable Lending has been under scrutiny by the Task Force on Online Lending Application, which was formed to investigate lenders involved in abusive debt collection. The task force includes the SEC, DoJ, NBI, Philippine National Police and Presidential Anti-Organized Crime Commission.