SEC bars lending firm using GCash unit’s name
It was Fuse Financing (formerly Fuse Lending, Inc.) that flagged the suspicious website allegedly using its previous corporate identity.
Daily TribuneIt was Fuse Financing (formerly Fuse Lending, Inc.) that flagged the suspicious website allegedly using its previous corporate identity.
The Securities and Exchange Commission (SEC) has ordered a lending company to immediately cease operations for allegedly exploiting the former name of GCash’s financing arm to run an unlicensed lending business.
In a cease and desist order (CDO) dated 31 July, the SEC directed Fuse Lending, Inc. — including its owners, operators, agents, and representatives — to stop engaging in any lending activity or transaction.
According to the corporate regulator, Fuse Lending maliciously used the former corporate name of Fuse Financing Inc., GCash’s official financing arm, without securing the necessary license to operate as a lending company.
It was Fuse Financing (formerly Fuse Lending Inc.) that flagged the suspicious website allegedly using its previous corporate identity. The company said the fraudulent operation poses a risk to the public and threatens its legitimate business.
An investigation by the SEC’s Financing and Lending Companies Division revealed that Fuse Lending is not registered as a corporation, partnership, or one person corporation, and has not obtained the secondary license required for lending operations.
SEC acts to protect consumers
The SEC said the CDO was issued not only to penalize the company but also to prevent fraud and protect the public and financial consumers from potential harm. The commission emphasized that operating without the proper registration and certificate of authority violates Republic Act 9474, or the Lending Company Regulation Act.
It added that under Republic Act 11765, or the Financial Products and Services Consumer Protection Act, the SEC is empowered to take enforcement actions — such as issuing a CDO — against firms whose activities may result in serious or irreversible harm to financial consumers.