“We take all regulatory matters seriously. While we have formally filed an appeal, we continue to maintain strict adherence to all existing lending and collection regulations,” the company said in a statement posted on its Facebook page.
Complaint triggered probe
The case stemmed from a complaint alleging that the lender continued collection activities at a third-party residence even after the borrower had objected in writing.
The SEC earlier imposed a P50,000 fine on Home Credit and ordered it to stop pursuing collection activities through individuals who were neither guarantors nor co-makers of a loan.
SEC orders policy changes
The regulator found that the practice exposed information about a borrower’s debt, financial condition and delinquency status to people with no lawful interest in the transaction.
It also ordered Home Credit to stop using third-party residences as collection venues and review its collection policies and procedures.
“Treating our customers fairly and with respect is fundamental to our operations. We continuously review and strengthen our collection practices, including how we engage customers and how we oversee our collection partners, to ensure every interaction meets the highest ethical standards our customers deserve.”
Industry heavyweight
Home Credit is the country’s largest consumer finance company, having served more than 12 million customers and generated nearly P500 billion in financed sales since entering the Philippines in 2013.
—Edited by Miguel R. Camus
