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SEC-Zambo office strictly implements Lending Company Regulation Act of 2007

ZAMBOANGA CITY, Feb. 28 (PNA) -- The Securities and Exchange Commission (SEC) has warned lending firms and individuals against doing business without the required authorization from the agency.

Lawyer Jesus Salvador Uro, chief of the SEC - Zamboanga extension office, on Tuesday issued the warning as he cited that Republic Act 9474 otherwise known as the Lending Company Regulation Act of 2007 “is now being strictly implemented.”

The warning of Uro is in line with the public declaration of President Rodrigo Duterte against people, including Indians, engaged in lending business through the "five-six" scheme.

The "five-six" arrangement is usury as it entails money lent at 20 percent interest rate.

Uro said that under the law, only registered corporations with a paid-up capitalization of at least PhP1 million can be granted an authority to operate as a lending company.

Uro said that entities who engage in lending without the required authorization from SEC can be criminally prosecuted and punished with a fine of not less than PhP 10,000 and not more than PhP 50,000 or imprisonment of not less than six months and not more than 10 years or both, at the discretion of the court.

He said additionally, the SEC can administratively penalize any entity in violation of Republic Act 9474 with a fine of PhP 50,000.

He encouraged the public to report to his office any person or firm engaging in the business activities of a lending company without the required Certificate of Authority from SEC.

The SEC-Zamboanga office is located along San Jose Panigayan St. here. (PNA)

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