SEC revokes license of lending firm Robocash

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Metro Manila (CNN Philippines, December 20)— The Securities and Exchange Commission (SEC) continued its crackdown against erring lending platforms after it stripped Robocash Finance Corp. of its license to operate over lack of business permits.

In a statement Thursday, the country’s corporate regulator said it revoked the loan provider’s license to operate for violating the Financing Company Act of 1998—particularly for running several branches without securing the required certificate of authority (CA).

Robocash, through its verified answer, admitted to operating branches without the necessary document, but argued that “it did not maliciously violate” the law.

The SEC, however, said it found no merit in the company’s defense.

“Thus, it is even more appalling that, despite being aware of the requirement of the law, Respondent knowingly and willingly committed repeated violations thereof,” the regulator added in its statement.

Under Section 14 of the measure’s implementing rules and regulations, the SEC may suspend or revoke a financing company’s CA after proper notice and hearing. The regulator may also impose a fine of ₱10,000 to ₱100,000.

According to its company profile, Robocash currently operates over 100 branches all over the country, including in Metro Manila, Cavite, Laguna, Pampanga, Tarlac, Bulacan, and Nueva Ecija. Several branches are also located in select train stations in the metro. The lending firm first opened in the country in 2017.

Over 2,000 lending and financing companies have had their licenses revoked amid the SEC’s ongoing crackdown against illegal firms.

The regulator said it has also issued cease and desist orders against 48 online lending companies for also operating without a secured CA.