BSP, SEC to Craft Policy to Regulate Online Lending Firms
September 30, 2019 – The impact of technology turns to be far-reaching and wide. Facing the ethical potentials of technology, the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) are crafting policy to regulate online lending firms. Fintech players, on the other hand, are articulating a new trend which is called “technoethics”.
The philosophy of technology is that it normally does not attempt to determine whether modern technology is good or bad and whether we should reject or embrace them (Brey 2010). Therefore, technology is no longer regarded as the instrument controlled totally by human beings but something with non-neutral values and social impact.
Last week September 23, 2019, SEC had shut down 11 online lenders. Towards weekend, 8 more online lending apps were ceased, from statement SEC Commissioner Kelvin Lee ;
“Not all of them are illegal, there is a certain number that is legitimate. But some bear a second look.”
Metro Manila Police chief Maj. Gen. Guillermo Eleazar on Thursday led the raid on Fuwei Lending Corporation in Pasig City. From his statement, they will file cases of violation of the
Data Privacy Act of 2012 against its five Chinese owners and 49 employees.
“Ang gusto nating mangyari dito matigil na ang ginagawang panloloko at pananakot sa ating kababayan na nagreresulta sa kanilang kahihiyan at the same time violation ng kanilang privacy in accordance to the law,”
To date, the SEC has issued cease and desist orders against the following lenders: Binixo, Cash 100, CashBus, Cashcat, Cash Whale, Cashafin, CashFlyer, CashMaya, Cashope, Cashuttle, Cashwarm, Cashwow, Crazy Loan, Creditpeso, ET Easy Loan,Flash Cash, Happy2Peso, Hatulong, Instant Pera, Lendmo Philippines, MeLoan, MoneyTree Quick Loan, Pera Express, Pera4u, Peramart, PesoLending, Peso2Go, QuickPera, QuickPeso and Umbrella. These companies were found to have violated the Lending Company Regulation Act of 2007. The law requires these companies to register as a corporation with the SEC and get certificates of authority to operate.
Bangko Sentral ng Pilipinas is working closely with the Securities and Exchange Commission (SEC) in crafting a regulatory policy against unscrupulous online lenders who are offering loans to the public. The monetary board has received a complaint against online lending companies offering loans and shaming their debtors who fail to meet their obligations from statement Mr. Elmore Capule, senior assistant governor and general counsel of BSP;
“We need to have a memorandum of agreement as to where our jurisdiction starts and up to what is their (SEC) jurisdiction.”
The BSP official, however, clarified that only court thru Usury Law that can declare illegal the “excessive and unconscionable” interest rates from a loan from online lending companies. The Fintech alliance forged a partnership with the National Privacy Commission, Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Anti-Money Laundering Council, Bureau of Internal Revenue, Department of Trade and Industry and Insurance Commission to establish industry-standard Consumer protection, governance, compliance, data privacy, security, and digital literacy to adopt industry-wide code of ethics and code of conduct in Fintech industry.
Reference: Newsbytes 1, 2, CNN
This story is published on BitPinas: BSP, SEC to Craft Policy to Regulate Online Lending Firms
Photo by Jonas Leupe on Unsplash
