THE Securities and Exchange Commission (SEC) has issued a cease-and-desist order against Microdot Lending Corp. and several of its associated online lending platforms (OLPs) for failing to disclose all operating platforms and for allegedly engaging in unfair debt collection practices.
In a cease-and-desist order dated Sept. 23, the SEC’s Financing and Lending Companies Department instructed Microdot and its platforms, including MF Cash, Credit Cash, Credit Peso, Pesoloan Mart, Cash Baka, Cash Mabilis, Go Peso, Instant Loan, and Timely Loan, to immediately stop promoting or conducting lending activities.
The SEC noted that Microdot is licensed as a lending company under Registration No. CS201951287 and Certificate of Authority No. 2921.
Its investigation found that certain platforms, specifically Credit Peso Pro and MF Cash, were not disclosed as required under Section 3 of SEC Memorandum Circular No. 19, Series of 2019.
“[Microdot’s] operation of the undisclosed OLPs, blatant disregard of the SEC’s regulatory authority over it, and practice of unfair debt collection, may unjustly cause grave or irreparable injury or prejudice to the borrowing public,” the order read.
The SEC said it has received numerous complaints since 2024 regarding allegedly unfair debt collection methods by Microdot, which the regulator said may violate the implementing rules and regulations (IRR) of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act, as well as Rule 8(c) of the IRR of Republic Act No. 9474, the Lending Company Regulation Act.
The agency said enforcement measures against Microdot have included show-cause letters, notices of deficiencies, assessment letters, walk-through audits, desk reviews, and on-site inspections.
BusinessWorld tried to reach out to the concerned party for comment, but no public contact information or company profiles were available. — Alexandria Grace C. Magno