The Securities and Exchange Commission-Cebu Extension Office (SEC-CEBEO) has issued an advisory warning the public against transacting with JA’s Credit Collection Service, an entity that is not registered as a lending company and lacks authority to operate under Philippine laws.
Unregistered lending operations exposed
According to the SEC-CEBEO, JA’s Credit Collection Service, owned and operated by Jo Ann Ebite Arsuento of Compostela, Cebu, has been offering loan services to the public through a Facebook page. The commission’s investigation revealed that the entity was offering online loans of up to P50,000 with an interest rate of 20 percent for a 15-day loan term, despite not having the required registration and license.
Violation of Lending Company Regulation Act
The SEC stated that JA’s Credit Collection Service and its owner may have violated Republic Act No. 9474, or the Lending Company Regulation Act of 2007, by engaging in lending activities without obtaining the necessary registration and authority from the commission. The law requires all entities engaged in lending to register with the SEC and secure appropriate authority before offering loans to the public.
Public advised to exercise caution
The commission reminded the public to exercise caution and avoid dealing with JA’s Credit Collection Service or any individual promoting its lending operations. The SEC also encouraged the public to report suspected unauthorized lending activities through its SEC iMessage Portal.
