DOF: Loan sharks face tougher SEC rules

Exploitative lending and financing firms could soon lose their grip on desperate borrowers as the Securities and Exchange Commission (SEC) moves to finalize caps on borrowing rates and other fees, after President Ferdinand R. Marcos Jr.'s chief economic manager ordered tighter oversight.

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In a Nov. 5 statement, Department of Finance (DOF) Secretary Ralph G. Recto urged stricter consumer protection, pointing out that lending sharks are all over the online space, victimizing Filipinos with exceedingly high borrowing costs and dragging them into a debt trap.

According to the DOF, the SEC, under its supervision, is now wrapping up a memorandum circular (MC) that "will set caps on interest rates and other fees imposed by lending and financing firms."

Under the proposed rules, the SEC seeks to set a limit on interest rates and other fees applied to unsecured general-purpose loans with a maximum amount of ₱2,000 and six-month loan terms.