SEC gets ready for crackdown on region’s loan sharks

By LITO RULONA
Correspondent

THE Securities and Exchange Commission (CSC) is preparing to launch a crackdown on loan sharks that collect exorbitant interests from borrowers.

Officials said the Commission would be investigating complaints, and would put in place measures aimed at regulating the operations of money lenders.

Lawyer Renato Egypto, SEC regional director, said the campaign would affect individuals and companies engaging in “5/6” in northern Mindanao and Caraga.

The campaign would also be aimed at getting rid of money lending companies with no SEC registration papers.

“Kining gitawag nato nga mga informal lenders– kanang nagpa-5/6. Kini aron mapasakahan sila og sumbong niadtong wala magpaehistro o secondary license and authority to operate as lending firms in certain area,” Egypto said.

He said his office received an advisory from SEC chair Teresita Herbosa about the illegal 5/6 activities and the proliferation of lenders  not registered with the SEC and without licenses to operate.

Egypto said RA 9474 that governs the establishment, operation and regulation of lending companies provides penalties against violators.

Under the law, violators can be slapped with fines ranging from P10 thousand to P50 thousand or imprisonment of six months to 10 years or both.

“Mas intensified karon kay duna nay pamahayag atong Pangulo Rodrigo Duterte that he is really concerned about the proliferation of 5/6. The SEC will be running after these informal lenders,” he said.  “Gusto gyud niya nga ipa-undang na ang 5/6 tungod kay daghan kini siya dinhi sa mga dakbayan og sa uban nga mga probinsiya.”