SEC halts Jia over hidden loans
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The Securities and Exchange Commission (SEC) has warned the public against dealing with Jia Financing Inc., after suspending the company’s authority to operate for 60 days due to violations involving an unauthorized website and undisclosed loan offerings.
The regulator said Monday that its Financing and Lending Companies Division (FinLend) ordered Jia Financing last 10 July to take down its website, jia.ph, for violating SEC Memorandum Circular No. 10, Series of 2021, which prohibits the launch of new online lending platforms.
The agency also found that Jia failed to disclose in its business plan that it would offer loans ranging from $50,000 to $200,000 per client through the website—violating SEC Memorandum Circular No. 3, Series of 2022.
The rule requires financing firms to fully declare their loan products, services, and pricing.
“The non-disclosure of these material changes in its operations warrants the suspension of its certificate of authority,” the order read.
In addition to the suspension, the SEC imposed a P10,000 fine and reiterated its directive to remove the unauthorized site, citing breaches of Republic Act No. 8556, also known as the Financing Company Act.
