The Securities and Exchange Commission (SEC) has warned public investors about Myloan Lending Investors, Inc. after the company was found using coercive and humiliating debt collection tactics.

The regulator said Monday that it imposed a P50,000 fine and cautioned that further violations could result in heavier penalties, including suspension or revocation of the company’s license.

Citing an order dated 18 February, the SEC said its Financing and Lending Companies Department (FLCD) found Myloan Lending administratively liable for a second breach of SEC Memorandum Circular (MC) No. 18, Series of 2019, under Republic Act No. 11765, the Financial Products and Services Consumer Protection Act, and its implementing rules.

MC 18 prohibits abusive debt collection practices such as threats, intimidation, contacting third parties beyond guarantors or co-makers, and use of obscene or insulting language.

The SEC noted that the violation stemmed from a borrower complaint alleging improper collection methods, including shaming messages, threats to contact emergency contacts and employers, and persistent third-party communications.

“These are not neutral reminders. They are coercive communications designed to pressure payment through humiliation and reputational exposure,” the order said.

“Even assuming (the borrower’s) delinquency, such a circumstance does not vest (the company) with a license to employ humiliation, harassment, or the specter of third-party exposure as instruments of coercion. Delinquency may justify reasonable collection efforts; it does not justify abuse,” it added.

The SEC’s action serves as a warning to public investors that regulatory breaches can expose lending firms to fines, reputational damage, and potential suspension or revocation of licenses.