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SEC stops 2 more online lending

January 24, 2022 - Monday 7:01 PM by GDM

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Corporate regulators announced Monday they ordered Goodpocket and Easymoney Lending Corporation to stop conducting lending operations without the necessary licenses. 

The Securities and Exchange Commission (SEC) directed Goodpocket and Easymoney to immediately cease and desist from engaging in, carrying out, promoting, and facilitating any lending activity/transaction until they have secured the necessary approval and authorization from the SEC.

The Commission issued the order after finding that Goodpocket and Easymoney have been conducting lending activities despite not being registered as a corporation.

Accordingly, both companies have no Certificates of Authority to operate as a lending or financing company.

The companies, their owners, operators, promoters, representatives, and agents were further enjoined to cease from offering and advertising their lending business through the internet or any other media, and to remove all materials involving such.

Republic Act No. 9474, or the Lending Company Regulation Act of 2007 (LCRA), requires persons or entities operating as lending companies to register as corporations and to secure from the SEC the necessary authority to operate.

“Thus, the act of these Online Lending Operators in offering and providing loans to the public constitutes actual fraud which was intentionally employed to lead the public into the belief that they are legally authorized to engage in the lending business which is not and has never been the case,” the SEC, sitting en banc, said.

The SEC has received complaints about the companies’ unfair collection processes, including the posting of libelous statements against borrowers on social media and the sending of such statements to their phone contacts.

In total, 60 online lending applications have been ordered to cease operations for lack of authority to operate as a lending or financing company.

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