The Securities and Exchange Commission (SEC) has cancelled the lending license of Copperstone Lending Inc., which operates online lending platforms (OLPs) Quickla, Pococash, Blue Peso, Peso Forrest, Moca Moca, Pesobuffet, and Load Cash, for its unfair debt collection practices and failure to disclose the true and correct terms of loan contracts with borrowers.
The SEC Financing and Lending Companies Division (FinLend), in an order April 11, found that Copperstone Lending violated Republic Act 3765, or the Truth in Lending Act (TILA), and SEC Memorandum Circular No. 18, Series of 2019 (MC 18) on the prohibition on unfair debt collection practices.
The online lending company was also ordered to pay P20,000 for violating the TILA.
The order was issued in response to several complaints filed with the SEC regarding Copperstone Lending’s OLPs, adding that “Moca Moca had disbursed loan amounts to borrowers without informing them of the exact amount involved, as well as the interest on overdue payments”.
The company was also found to be falsely advertising terms of the loan contract, compared to what was actually contracted with borrowers.
“Lending companies are required to disclose to borrowers the cash price or delivered price of the property or service to be acquired; amounts, if any, to be credited as down payment and/or trade-in; the difference between these amounts; charges which are paid or to be paid in connection with the transaction; and the total amount to be financed, among others,” the SEC said in a statement April 24.
Complaints against Moca Moca and Pesobuffet further show that the OLP threatened borrowers with the filing of estafa cases and sent messages to phone contacts not named as the borrower’s guarantors and references, among other debt collection tactics, it added.
The SEC said MC 18 prohibits the use of unfair debt collection practices, including the use or threat of use of violence to harm the person, reputation, or property of any person; the use of obscenities, insults, or profane language; as well as the disclosure or publication of names of borrowers, who allegedly refuse to pay debts, among others. ||
