MANILA, Philippines — Over 7,000 lending companies are currently registered under the Securities and Exchange Commission (SEC).
From among them, about 3,000 may have registered but without certificates of authority. A certificate of authority proves that a lending company is capable of lending money.
Without such certificate, SEC said it would be difficult for them to help a borrower pursue a lending company in case of complaints.
SEC Assistant Director Nora Tandoc said, “Para ma regulate sila (In order to regulate [lending companies].) If they have complaints at least they have the commission to air their complaints to.”
SEC also warns the public not to transact with more than 80 suspended companies listed on their website.
Also, the agency advises borrowers not to give in to Indian nationals who offer the “5-6” lending scheme as they are obviously unregistered.
But despite the warnings, many Filipinos are left with no choice but to borrow money from “5-6” lenders because of easy transaction.
For vendor Marissa Rosal, she prefers borrowing from Indian nationals because, “Sa lending po maraming requirements sa bombay [5-6] po wala, (Lending companies have too many requirements while Indian nationals have none).”
Oscar Rosal, another vendor, agrees, “Sa bombay wala ng hinihinging collateral, eh (Indian nationals don’t ask for collateral).”
The list of SEC-accredited lending companies can be seen on the SEC website. Complaints can also be accommodated through the message function visible on said website. — Mon Jocson | UNTV News & Rescue
WATCH: Government offers safer and low interest alternative for 5-6 lending scheme