Regulatory Alerts2019-08-23
SEC Memorandum Circular No. 18 s.2019 Prohibition on Unfair Debt Collection Practices of Financing and Lending Companies
The Securities and Exchange Commission of the Philippines issued this circular to prohibit Financing and Lending Companies from engaging in unfair debt collection practices, including harassment, violence, and privacy violations. The regulation mandates strict confidentiality of borrower data, requires companies to maintain customer service units for complaint resolution, and holds companies ultimately responsible for the actions of their outsourced third-party service providers. Violations are subject to escalating fines and potential suspension or revocation of operating certificates, with penalties calculated on a per-loan transaction basis.
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