Philippine Securities and Exchange Commission fines Surity Cash Lending Investors Corporation PHP 1 million for unfair debt collection practices

The Philippine Securities and Exchange Commission imposed a PHP 1 million fine on Surity Cash Lending Investors Corporation for unfair debt collection practices, after finding three violations of SEC Memorandum Circular No. 18, Series of 2019, which prohibits such practices by financing and lending companies. The penalty was ordered by the Commission En Banc in a decision dated September 16. Two violations related to Section 1 of the circular, which bars debt collection conduct including threats of violence or criminal harm, the use of obscenities, insults or profane language, and the disclosure of borrowers’ names and personal information, among other prohibited acts. A further violation related to Section 4 for late submission of a sworn certification on compliance with requirements to establish a customer service department or designate personnel to handle borrower complaints and concerns; Section 4 also requires a policy for collection personnel to disclose their full name or identity to borrowers. The SEC allowed the company to retain its corporate registration but issued a stern warning that any further or repeated violations of the circular and other applicable rules will be dealt with more severely.