The Securities and Exchange Commission issued a permanent cease and desist order against online lending operators Skymart, Withu and Spendcash.
It denied the respective motions filed by Skymart, Withu and Spendcash for the lifting of the cease and desist order for lack of merit.
The SEC issued the order after investigation showed that the three entities allegedly engaged in lending and financing activities without securing the necessary licenses from the SEC and/or have allegedly violated relevant regulations such as the requirement for registered lending and financing companies to disclose and report their online lending platforms to the SEC and the prohibition on abusive debt collection practices.
Republic Act No. 9474, or the Lending Company Regulation Act of 2007 requires persons or entities operating as lending companies to register as corporations and secure certificate to operate from the SEC.
