The Securities and Exchange Commission (SEC) has fined Fast Coin Lending Corp. P1.1 million for harassing borrowers and charging interest rates beyond regulatory limits to curb abusive lending practices and strengthen consumer protection.

Citing an order dated 30 June, the regulator said Thursday its SEC’s Financing and Lending Companies Department found the company liable for violating rules prohibiting unfair debt collection, imposing interest and fees beyond prescribed ceilings, failing to provide mandatory loan disclosures, and disregarding the Commission’s lawful directives.

Harassment in collecting loan payments

The case stemmed from a complaint filed by a borrower who alleged that Fast Coin harassed her through text messages while collecting loan payments.

She also claimed that after applying for a loan through the company’s CashGuard online lending application, multiple loan accounts were created under eight loan products.

The SEC’s investigation found that the lender used public humiliation, disclosure of personal information, and other forms of intimidation in its collection efforts.

Interest rates pushed beyond SEC-set cap

The regulator also found that Fast Coin’s deductions, classified as “management fees,” pushed its effective interest rates beyond the SEC’s 15-percent monthly cap.

In addition, the company failed to provide required documents such as loan agreements, disclosure statements and amortization schedules, and did not submit documents requested by the SEC during its investigation.

Expected to conduct their business with transparency

“Lending companies operate in a public interest industry and are expected to conduct their business with transparency, fairness, accountability, and strict compliance with the regulatory framework established to protect financial consumers,” the order read.