Under draft rules released for a second round of public comments, financing and lending companies would face sharply higher capital requirements, especially if they operate multiple lending platforms.
The SEC also wants to cap ownership at five online lending platforms per company, a move aimed at making the sector easier to monitor as digital lenders continue to expand.
Consumer complaints remain the trigger
The move signals a shift from the regulator’s years-long crackdown on abusive lending apps toward stricter supervision designed to weed out weaker players while allowing new entrants back into the market.
The tougher requirements also come after years of complaints involving harassment, privacy violations and abusive collection tactics by some online lenders.
Tough penalties
The proposed rules would ban companies from releasing loan proceeds without a borrower’s explicit approval of the final terms and require clearer identification during collection efforts.
Repeat offenders would face stiffer penalties, with fines reaching P1 million and possible suspension or loss of operating authority.
The rules remain under public consultation, but the direction is clear: online lenders may soon be allowed to grow again, provided they can meet tougher standards and avoid the practices that triggered the crackdown in the first place.
—Edited by Miguel R. Camus
