Heads Up: Don't Borrow From These Three Lending Companies

Three online lending operators were ordered to stop their lending activities after it was found that they did not have the necessary authorization from the Securities and Exchange Commission (SEC). 

In an order issued April 26, the SEC’s Commission en banc directed Golden Cash, Help Cash, and Grace Cash to immediately cease and desist from engaging in, carrying out, promoting, and facilitating any lending activity/transaction until they have secured the necessary registration and license from the SEC. 

All three were also ordered to stop employing abusive collection practices as well as offering and advertising their lending business through the internet or any other media, and to delete any such materials.

According to the SEC, all three companies are not registered as a corporation and are therefore not allowed to secure a Certificate of Authority to Operate as a lending or financing company.

“[T]he Commission finds that the continued operations of Golden Cash, Help Cash, and Grace Cash constitute a clear violation of, and should be penalized pursuant to the [LCRA] because it engages in or carries out a lending business without the required license from the Commission,” the SEC said.

The SEC’s Enforcement and Investor Protection Department (EIPD) also revealed that the online lending operators have been employing unfair collection practices, which is prohibited under the commission’s memorandum circular No. 18. The EIPD noted that the online lending operators have been harassing, threatening, publicly humiliating their respective borrowers, and imposing hidden charges and excessive processing fees.

“The acts of these unregistered online lending operators in illegally offering and providing loans to the public, charging high interest rates, and subjecting its debtors to unfair treatment through abusive and even libelous language in collecting the loaned amount…have no place in a society that is governed by and faithfully adheres to positive laws,” the SEC said.

The full list of licensed lending and financing companies and their registration status can be found here.