The Securities and Exchange Commission (SEC) has filed criminal complaints against the employees, officers and owners of Creditable Lending Corporation, the operator of online lending application Easypeso, for engaging in abusive collection practices.
Through an inquest proceeding on July 17, the SEC, together with the National Bureau of Investigation (NBI) and the National Privacy Commission (NPC), formally lodged criminal complaints with the Department of Justice against 173 employees of Creditable Lending, as well as its incorporators, officers/directors and beneficial owners.
They were charged for violating Republic Act (RA) No. 11765, or the Financial Products and Services Consumer Protection Act, and RA No. 10173, or the Data Privacy Act. They were also implicated for misuse of devices and illegal access, in violation of RA No. 10175, or the Cybercrime Prevention Act.
The filing of the complaint stemmed from the law enforcement agencies’ implementation of the search warrants issued by Branch 46 of the Regional Trial Court of Manila against Creditable Lending, which led to the arrest of the company’s employees at its office in Pasig City on July 15.
The inter-agency operation was led by the NBI, NPC, Presidential Anti-Organized Crime Commission (PAOCC), Philippine National Police (PNP) Anti-Cybercrime Group, PNP Criminal Investigation and Department Group and the SEC Enforcement and Investor Protection Department.
Items seized during the operation include computers, company-issued phones, pre-registered sim cards, text blasters, as well as scripts that were allegedly used by the employees to harass borrowers during collection.
Following the raid, the SEC Financing and Lending Companies Department issued a cease and desist order against Creditable Lending and Easypeso, including any and all persons acting on their behalf, directing them to immediately stop promoting and facilitating any lending activity or transaction.
Creditable Lending has been a subject of the discussions of the Task Force on Online Lending Application, a dedicated group established to lead the crackdown on lending operators engaged in unfair debt collection practices, following increasing reports of harassment committed by lenders.
The task force is composed of law enforcement agencies such as the PAOCC, DOJ, NBI, and PNP, among others.
