THE Securities and Exchange Commission (SEC) – Cagayan de Oro Extension Office has issued a stern warning to the public to exercise caution when engaging with online lending platforms, amid reports of harassment and unlawful collection methods.

Over a radio interview on April 15, SEC-Cagayan de Oro Supervising Administrative Officer Jesher Radaza emphasized the importance of verifying the registration status of online lenders.

“We ask for the name of the lending company, so we can check if it is registered with the SEC,” Radaza said.

He explained that many online lenders operate without proper authorization, making their practices illegal if they lack a Certificate of Authority from the SEC.

“If they don’t have this certificate, their operation is considered illegal,” Radaza warned.

The SEC official even advised victims of abusive lending practices to gather evidence and report incidents to authorities such as the National Bureau of Investigation or the Criminal Investigation and Detection Group for legal action.

LENDING WARNING. SEC-Cagayan de Oro official Lawyer Jesher Radaza (left) discusses abusive online lending practices during a recent radio interview. Photo courtesy of PIA-10

Radaza clarified that registered lenders are bound by legal and ethical standards, including proper collection procedures.

“Calls to borrowers should be made only between 6:00 am and 10:00 pm, and harassment or disrespectful behavior is strictly prohibited,” he said.

He condemned practices such as public shaming, threats, and other forms of coercion used to pressure borrowers.

While repayment is expected, Radaza stressed that such activities should never violate legal or ethical boundaries.

Radaza also issued a warning against the use of online lending apps, citing high interest rates and frequent reports of misconduct.

The SEC has already issued cease and desist orders against unregistered entities and is working with the Enforcement and Investor Protection Department in Manila to pursue further cases.

The public is encouraged to report suspicious lending activities and verify the registration status of lenders through official SEC channels to avoid falling victim to illegal practices. (With a report from RTP/PIA-10)