The Securities and Exchange Commission cancelled the license of lending firm KingABC Lending Corp. which runs four online lending platforms because of alleged unfair debt collection practices.
It said based on its investigation, King ABC which operates Pondo Loan, Start Loan, Green Loan and Loan Club committed 15 violations of SEC Memorandum Circular No. 18, Series of 2019 which prohibits lending and financing firms from adhering to unfair debt collection practices.
The SEC said its corporate governance and finance department found KingABC to have threatened borrowers with shaming on social media by publishing their names as scammers and contacting people in the borrowers’ contact list despite not being named as co-makers or guarantors.
KingABC also used obscenities, insults or profane language in debt collection and threatened to sue borrowers based on made-up legal bases, according to the CGFD.