The regulator released draft rules for public comment outlining stricter standards for companies operating lending apps.
Plans to lift the moratorium, spearhead by SEC chair Francis Ed. Lim, were previously reported by InsiderPH.
The freeze, imposed in 2021 after complaints of abusive collection practices, stopped approvals for additional platforms while existing operators continued operating.
Higher capital requirements
Under the proposal, lending and financing companies will face higher minimum paid-up capital depending on how many online lending platforms they operate. Financing companies without online platforms must maintain at least P20 million in capital, while lending companies must keep P10 million.
Those running lending apps will need significantly more capital, rising to P30 million for one platform, P60 million for two to five platforms, and up to P100 million for a maximum of ten platforms.
Stronger borrower protection
The draft rules also tighten consumer safeguards after years of complaints against aggressive lending apps. Companies will be prohibited from accessing borrowers’ contact lists, social media contacts, or messaging records from mobile devices.
Online lending platforms will also be barred from using automated debt collection messages beyond neutral payment reminders, reinforcing rules against harassment and unfair collection practices.
—Edited by Miguel R. Camus
