SEC Halts Magic Peso’s Unauthorized Online Lending Operations

​The Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) against Magic Peso for illegally operating an online lending platform (OLP) and for engaging in unfair debt collection practices

​In an order dated June 24, the SEC Financial and Lending Companies Department (FinLend) directed Magic Peso, including its owners, operators, promoters, representatives, agents, and any person claiming and acting for and, in their behalf, to immediately stop from engaging in, carrying out, promoting and facilitating any lending activity.
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The order came following reports and complaints received by the SEC from borrowers of Magic Peso for its alleged unfair debt collection processes.

Magic Peso is not among the recorded OLPs under the Commission’s records, in violation of SEC Memorandum Circular No. 19, Series of 2019, which requires OLPs to disclose their corporate name, SEC registration number, certificate of authority to operate a financing/lending company number, among others, in a portion of their platforms.

Its continued operation also violates SEC MC No. 10, Series of 2021, which imposed a moratorium on new OLPs on November 2, 2021.

“[Magic Peso’s] borrowers are at risk of experiencing abusive collection practices, high-interest rates and violation of their data privacy rights,” the order read.