SEC Revokes Cashtrees Lending License After Violations

The Securities and Exchange Commission (SEC) has revoked Cashtrees Lending Corp.’s license for violating a moratorium that was released late last year on new online lending platforms (OLPs).

On Thursday, SEC canceled the operations of Cashtrees Lending for they have violated their prohibitions for OLPs, and continue to develop and operate unregistered lending mechanisms.

In a report, Cashtrees Lending has launched and operated eight unrecorded OLPs namely Rush Loan, Easy Money, Good Pocket, Lucky Start, Swipe Cash, 365 Cash, Mega Loan, and Gold Peso, this is covered by the moratorium that took effect on November 2, 2021.

Cashtrees Lending was found to commit eight violations regarding the moratorium and also discovered to violate eight more by neglecting the disclosure requirements on advertisements of lending and financing companies, as well as reporting of OLPs.

“Due to the multiple violations of SEC MC 19 and SEC MC 10 committed by [Cashtrees] in launching the eight unrecorded OLPs and due to the additional violations of SEC MC 19 committed by [Cashtrees] in its failure to comply with regard to its three recorded OLPs, [Cashtrees] showed its wanton disregard of the Commission’s rules and regulations,” the SEC said in its revocation order.

“As the online lending industry is strictly regulated, companies who are either unwilling or unable to comply with the rules imposed cannot be allowed to continue to operate,” SEC added.

The SEC ordered the moratorium in reaction to the rise of financial technology companies that engage in predatory lending by charging high-interest rates and enforcing tremendous payment terms on Filipinos in need of fast loan applications and approvals.

Sources: BusinessWorld, ABS-CBN News