Manila: The Securities and Exchange Commission (SEC) has slapped Surity Cash Lending Investors Corporation, which offers personal loans through its mobile application, with a PHP1-million penalty for unfair debt collection practices.

According to Philippines News Agency, the penalty was approved by the SEC’s Commission En Banc in a decision dated September 16, 2025. The lending firm was found guilty of three counts of violating SEC Memorandum Circular (MC) 18, which prohibits unfair debt collection tactics.

The memorandum circular specifically bans the use of threats, violence, or criminal means to harm a person’s reputation or property. It also prohibits the use of obscenities, insults, or profane language, as well as the disclosure of the names and personal information of borrowers who refuse to pay debts.

Additionally, the SEC noted that Surity Cash violated Section 4 of the same memorandum circular for the late submission of a sworn certification. This certification is meant to confirm the company’s compliance with establishing a customer service department or designating personnel to handle borrowers’ complaints and concerns.

The SEC stated that while it is not imposing the penalty of suspension or the ultimate penalty of revocation of the company’s corporate registration at this time, unfair or abusive debt collection practices are unacceptable in the lending and financing industry. “These practices will never be considered reasonable and legally permissible means to collect a loan,” the decision emphasized.