SEC cancels primary registration, secondary license of Convenience Cash Lending

​The Securities and Exchange Commission (SEC) has revoked the corporate registration and secondary license of Convenience Cash Lending Corp., doing business under the name and style of Zada Cash and Bloom Cash, for engaging in unfair debt collection practices.

In an order dated July 17, the SEC Financing and Lending Companies Department (FinLend) cancelled both the certificate of incorporation and certificate of authority to operate as a lending company of Convenience Cash for committing four counts of violation of SEC Memorandum Circular No. 18, Series of 2019.

The memorandum circular prohibits lending and financing companies from engaging in unfair debt collection practices.

The revocation came following the Commission’s receipt of over 600 complaints over the collection practices of the company, four of which ripened into formal complaints. The complaints alleged that the company sent threatening messages to the borrower and his/her contacts, as well as funeral services to the borrower’s address.

“When collecting the amount due to them, [lending companies and their third party service providers] are mandated to observe good faith, reasonable conduct and refrain from engaging in unscrupulous and untoward acts,” the order read.

“After a careful evaluation of the contentions and the documents of the [company] and all the complainant-borrowers, FinLend finds the complainant borrowers to have supported their claims with substantial evidence,” it added.

As early as May 27, the SEC has issued a cease and desist order against Convenience Cash for its failure to comply with an SEC order requiring online lending platform operators to register with the Credit Information Corporation, as mandated Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act and its implementing rules and regulations.