The Securities and Exchange Commission (SEC) has warned the public against transacting with Zada Cash and Bloom Cash after it issued a cease and desist order (CDO) against their operator, Convenience Cash Lending Corp., for engaging in unregistered lending activities.
The regulator said Friday that its Financing and Lending Companies Division ordered the company last 27 May to immediately stop all lending operations, including those conducted through its online lending platforms.
The SEC said the CDO was issued after the company failed to comply with its 6 July 2023 directive requiring online lending platform operators to register with the Credit Information Corp., as mandated by Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act.
The SEC reiterated that the order was necessary “to protect the public and financial consumers from potential fraud, injury, or harm associated with unregistered lending activities.”