Solon Seeks Expanded SEC Powers to Combat Predatory Lending Apps

MANILA, Philippines — A lawmaker is proposing the provision of more powers to the Securities and Exchange Commission (SEC) so that it can fight rogue online lending applications (OLA) and abusive debt collectors, amid numerous complaints filed before authorities. In a statement on Wednesday, Quezon City Rep. Patrick Michael Vargas said he has filed House Bill No. 10240, which seeks to grant the corporate regulator additional authority to address the growing problem of predatory lending schemes. Vargas said the proposed measure is necessary to protect Filipinos from the abusive practices of some OLA operators and debt collectors who resort to harassment, threats, and other forms of intimidation to collect payments. He added that the SEC, as the primary government agency responsible for regulating corporations and partnerships, should be equipped with the necessary tools to effectively monitor and police the digital lending landscape. "The SEC needs to have the teeth to go after these unscrupulous individuals and entities that prey on our citizens, especially those who are in dire financial need," Vargas said. Under the proposed bill, the SEC would be empowered to: * Investigate and prosecute OLA operators and debt collectors who violate existing laws and regulations. * Suspend or revoke the registration of companies engaged in abusive lending practices. * Impose stricter penalties and sanctions on offenders. * Collaborate with other government agencies, such as the Bangko Sentral ng Pilipinas (BSP) and the National Privacy Commission (NPC), to ensure a coordinated response to the issue. Vargas noted that the number of complaints against OLAs has surged in recent years, with many victims reporting exorbitant interest rates, unauthorized disclosure of personal information, and aggressive collection methods. "These predatory lending schemes not only cause financial distress to our citizens but also violate their privacy and dignity," he said. The lawmaker expressed hope that the bill would be given swift passage by Congress, emphasizing the urgent need to address the issue and provide much-needed relief to affected Filipinos. "We cannot allow these abusive practices to continue unchecked. We must act now to protect our people and ensure that the digital lending space is a safe and trustworthy environment for everyone," Vargas concluded.