Golden Alliance Credit Corp. is locked out of its core business for 60 days after the Securities and Exchange Commission (SEC) suspended its authority to operate as a lending company over unpaid annual fees.

The penalty forces Golden Alliance Credit to immediately cease all lending operations for two months, turning what began as a failure to meet a regulatory payment requirement into a direct disruption of its business.

Citing a 9 July resolution, the SEC Financing and Lending Companies Department said Monday it found Golden Alliance Credit liable for three violations of the implementing rules of Republic Act No. 9474, or the Lending Company Regulation Act of 2007.

The violations stemmed from the company's failure to pay its annual fees within the period required of licensed lenders.

Under the law's implementing rules, lending companies must pay an annual fee as part of their licensing requirements within 45 days before the anniversary date of the issuance of their certificate of authority.

“Golden Alliance Credit was ordered to pay administrative fines amounting to P110,100, and was directed to immediately cease and desist from engaging in any lending operations during the suspension period,” the regulator said.

But the bigger hit is the 60-day suspension itself. With the SEC ordering the company to cease and desist from lending during the period, Golden Alliance Credit cannot carry out the business for which its certificate of authority was issued.

The regulatory trouble could become more serious if the company slips up again.

The SEC handed Golden Alliance Credit a “stern and final warning,” saying subsequent violations of lending regulations, the Revised Corporation Code, or other rules issued by the Commission would be dealt with more severely. That could include revoking Golden Alliance Credit's lending license altogether.