The Securities and Exchange Commission has revoked the corporate registration and lending license of Gul-Zara Lending Investor Corp., effectively barring it from operating and dealing with borrowers to protect the public from non-compliant lenders.
Citing an order dated 17 March, the regulator said Friday that the firm’s continued violations of Republic Act No. 9474 and Republic Act No. 11232 raised concerns about transparency and accountability—key safeguards for borrowers.
For the public, the shutdown means any ongoing or prospective transactions with Gul-Zara Lending and its online platforms will no longer be legally covered, underscoring the risks of dealing with firms that fail to meet regulatory requirements.
“Given the multiplicity, duration, and continuity of [the company’s] violations, the ultimate penalty of revocation is not only authorized but compelled by regulation,” the order read.
“Notwithstanding the reportorial nature of these submissions, [Gul-Zara Lending’s] blatant disregard thereof demonstrates a clear intent to disregard the Commission’s directives… It bears emphasis that the authority given to operate as a lending company is a privilege revocable by the Commission when public interest or welfare so requires,” it added.
The SEC also imposed administrative fines of P100,000 each on the company’s directors and officers, reinforcing its push to tighten oversight of lending firms and safeguard borrowers from potential harm.
The SEC has repeatedly warned borrowers to transact only with registered, compliant lending companies to protect against abusive or opaque practices.
The case stemmed from repeated failures by the company to submit required reports, including financial statements and disclosures on its online lending platforms, as well as non-payment of annual fees since 2009.
It was also found to have continued operating unregistered online lending platforms despite a moratorium.