The Securities and Exchange Commission (SEC) has ordered Bridge Cash to immediately stop its online lending operations after finding that it was operating without the licenses required under Philippine law.

Citing a cease and desist order dated 9 June, the SEC said Wednesday its Enforcement and Investor Protection Department (EIPD) directed Bridge Cash to immediately cease and desist from processing online lending-related activities and operating its applications, online lending platforms (OLPs), messaging channels, and website under the Bridge Cash name or any variation.

The order also covers the entity's operators, owners, administrators, officers, representatives, agents, promoters, and all persons claiming and acting on its behalf.

The SEC further ordered Bridge Cash to stop engaging in deceptive, unfair, fraudulent, and unauthorized lending practices, including falsely claiming affiliation with First Digital Finance Corporation or any other legitimate SEC-registered financing or lending company.

The regulator issued the order after receiving complaints from borrowers who alleged that Bridge Cash released loan proceeds that were substantially lower than the approved amounts because of undisclosed deductions and hidden fees, while requiring repayment of the full loan amount within five to seven days.

An investigation by the SEC found that Bridge Cash is not registered as a corporation with the Commission and has not been issued a certificate of authority to engage in financing or lending activities.

The regulator said the entity's operation of an unregistered online lending platform violated SEC Memorandum Circular No. 19, Series of 2019, which requires financing and lending companies to disclose all OLPs they operate, as well as SEC Memorandum Circular No. 10, Series of 2021, which imposes a moratorium on new online lending platforms.

Based on statements from complainants, the SEC also found that Bridge Cash engaged in coercive collection practices, including harassment and unauthorized access to borrowers' personal contacts, in violation of SEC Memorandum Circular No. 18, Series of 2019, and Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act of 2022, which prohibits unfair debt collection.

"Accordingly, the continued operation of Bridge Cash operates as a fraud upon the public and can cause grave, irreparable, and continuing injury and prejudice to borrowers and financial consumers," the order read.