Tulfo Criticizes Regulation of Lending Companies

PHILIPPINES, March 28 - Press Release
March 28, 2025

Tulfo Criticizes Regulation of Lending Companies

Senator Idol Raffy Tulfo exposed several lapses he observed in the Securities and Exchange Commission (SEC) in terms of regulating financial and lending companies operating their respective online lending applications (OLAs).

According to him, his office has received numerous complaints from netizens who borrowed from OLAs and were shocked to find that their personal information was being shared with others.

During the Senate Subcommittee on Banks and Financial Institutions hearing on March 27, Sen. Tulfo revealed that he discovered the SEC allows lending companies to freely share the confidential information of borrowers with third-party service providers, as stated in Section 2 of their Circular No. 18, s. 2019.

Atty. Kenneth Joy Quimio, OIC Director of the Financing and Lending Companies Department of the SEC reasoned that these third-party providers act as agents for the OLAs.

Sen. Tulfo however, expressed opposition to this, saying it clearly violates the Data Privacy Act of 2012 (Republic Act No. 10173), which protects sensitive personal information. He further argued that OLAs and third-party service providers are separate entities and should not be given such sensitive data.

As a result, Sen. Tulfo suggested that OLAs should set up their own collection units to collect debts, so that victims could seek recourse in case they are harassed. He also recommended the complete removal of the provision in the SEC Circular and its review to create a new policy, which Atty. Quimio agreed with.

Sen. Tulfo also criticized the SEC's confusing list, which included 117 registered financial and lending corporations operating over 181 online lending platforms, a list released only on March 18, 2025.

Sen. Tulfo questioned why, despite the SEC's imposition of a moratorium on online lending platforms on November 2, 2021, allowing no new registrations, the SEC had seemingly permitted the registration of new companies, increasing the number of platforms by about 40 in 2025.

Atty. Quimio explained that some companies had over-declared and listed their websites, which were only for marketing and advertising purposes. He added that the SEC continuously monitors OLAs.

Sen. Tulfo did not accept this explanation, saying he found out a company named Sun Prime Incorporated, which did not apply for an OLA license before the moratorium in 2021 but was allowed by the SEC to operate as Salmon Finance in 2025.

In response, Atty. Quimio promised to check with their offices on how this happened and to submit an official response report to Sen. Tulfo.

Sen. Tulfo also recommended that it is time for the SEC to actively clean up its list of registered financial and lending companies to better inform the public about legitimate and accredited lending companies, and to discourage consumers from engaging with bogus and exploitative online lending companies.

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Tulfo, sinita ang regulasyon ng lending companies!

Ibinulgar ni Sen. Idol Raffy Tulfo ang ilang kapabayaan na kanyang nasita sa Securities and Exchange Commission (SEC) partikular na sa pagreregulate nito sa mga financial at lending companies na nagpapatakbo ng kani-kanilang mga online lending applications (OLAs).

Maraming reklamo na kasi ang natanggap ng opisina ni Sen. Idol mula sa mga netizens na nangutang sa mga OLA at nagugulat na lamang sila dahil nakakarating sa ibang tao ang kanilang mga personal na impormasyon.

Kaya naman sa hearing ng Senate Subcommittee on Banks and Financial Institution kahapon, March 27, sinabi ni Sen. Tulfo na napagalaman niyang hinahayaan ng SEC ang lending companies na basta na lamang ipamahagi ang confidential information ng "borrowers" sa third party service providers na nakasaad sa Section 2 ng kanilang Circular No. 18 s. 2019.

Depensa ni Atty. Kenneth Joy Quimio, OIC Director ng Financing and Lending Companies Department ng SEC, partner naman daw ito ng mga OLA na nagsisilbing agents nila.

Tinutulan ito ni Sen. Idol at sinabing maliwanag na paglabag ito sa Data Privacy Act of 2012 (Republic Act No. 10173) na pumoprotekta sa mga sensitibong impormasyon ng isang indibidwal. Dagdag pa ni Idol, magkaibang entity ang OLA at ang third party service provider na hindi dapat binibigyan ng ganitong mga sensitibong impormasyon.

Dahil dito, iminungkahi ni Sen. Tulfo na magtalaga o mismong mga collection units na dapat ng OLAs ang dapat kumolekta ng mga utang para may habol ang mga biktima sakaling sila ay i-harass. Inirekomenda rin ni Sen. Raffy ang tuluyang pagsibak sa naturang probisyon ng naturang SEC Circular at pagrepaso nito para makabuo ng bagong polisiya na siyang sinang-ayunan ni Atty. Quimio.

Sunod na pinuna ni Sen. Tulfo ang nakakalitong listahan ng SEC kung saan mayroon silang 117 registered financial at lending corporations na nagpapatakbo ng nasa mahigit 181 online lending platforms na inilabas lang noong March 18, 2025.

Ipinagtataka ni Sen. Idol na kung nagpatupad ng moratorium ang SEC noong November 2, 2021 para hindi na muling magkaroon ng online lending platforms ay bakit tila pinayagan makapag-register ng SEC at hinayaan pa itong madagdagan pa ng nasa 40 kumpanya ngayong 2025.

Paliwanag ni Quimio, may mga kumpanya raw kasing nag-ooverdeclare at nasasama ang kanilang website kahit na pang-marketing at advertisement lamang daw nila ang mga ito. Dagdag pa ni Quimio tuloy-tuloy naman daw ang pagmo-monitor nila sa mga OLA.

Hindi nakaligtas kay Sen. Tulfo ang palusot na ito ni Quimio dahil natuklasan ni Sen. Raffy na may isang kumpanyang nagngangalang Sun Prime Incorporated na hindi naman nag-apply ng aplikasyon para magkaroon ng OLA noong 2021 bago ang moratorium ngunit pinayagan ng SEC na mag-operate ng OLA bilang Salmon Finance ngayong 2025.

Dahil dito ay nangako si Quimio na i-checheck nila sa kanilang mga tanggapan kung paano ito nangyari at magsusumite agad kay Sen. Tulfo na official response report ukol dito.

Dahil dito, inirekomenda rin ni Sen. Idol na panahon na para aktibong linisin ng SEC ang listahan ng mga registered sa kanila na financial at lending companies nang sa gayon ay maayos na maimpormahan ang publiko kung sino ang matitino at accredited na mga kumpanyang nagpapautang at hindi na tangkilikin pa ang mga bogus at mapansamantalang mga online lending companies.