As recommended by the Securities and Exchange Commission (SEC), Google is tightening the approval process for Philippine-based online lending apps. This will help the commission regulate lending and financing companies and deter loan sharks that are taking advantage of the Filipino people.
From now on, developers are required to submit a personal loan app declaration and indicate that they have the necessary documents from SEC before they publish lending apps on the Google Play Store. In addition, they must prove that they have the authority to perform lending-based crowdfunding activities.
As of writing, the SEC has revoked more than 2,000 registrations of online lending and financing companies for failure to comply with the necessary requirements. Most of them are also charging unreasonable interest rates, going as high as 500%.
The SEC has been coordinating with Google since 2019 for this kind of matter. According to SEC, the Philippines is the third country where Google will implement the additional requirements for developers of personal loan apps. The other two are India and Indonesia.
“We thank Google for supporting our efforts to combat illegal and abusive lending, and thereby preserve the financing and lending industry’s integrity, and provide Filipinos secure and accessible financing options,” SEC Chairperson Emilio Aquino said.
For an official list of licensed lending and financing companies, you may check this link.
Article From: HowToGeek