SEC orders Link Credit Lending to pay P1 million for unfair debt collection practices

​The Securities and Exchange Commission (SEC) has imposed a P1 million penalty against Link Credit Lending Investors Inc., doing business under the names and styles of iPeso and Pesoin, for engaging in unfair debt collection practices.

​In an order dated July 18, the SEC Financing and Lending Companies Department (FinLend) held Link Credit Lending administratively liable for four counts of violation of SEC Memorandum Circular (MC) No. 18, Series of 2019, which provides for the prohibition on unfair debt collection practices.

From September 2022 to March 2023, FinLend has received over 200 complaints against Link Credit Lending for its debt collection practices, four of which are the subject of the order.

Upon investigation, FinLend found Link Credit Lending to be sending messages containing insults that tend to abuse borrowers. It was also found to be sending threats that they would call the borrowers’ emergency contact and co workers for non-payment of their loans.

MC No. 18 allows financing and lending companies, and their third-party service providers to pursue all reasonable and legally permissible means to collect amounts under the loan agreements, provided that they must observe good faith and reasonable conduct in exercising their rights and duties, and refrain from engaging in unscrupulous and untoward acts.

“[C]onsidering the facts, circumstances and gravity of the offense committed by [Link Credit Lending], [FinLend] finds that the monetary penalty of [P1 million] is proper and precise,” the order read.

In addition to the monetary penalty, the company was likewise given a stern warning that any subsequent violations of the MC “will be dealt with more severely.”