The Securities and Exchange Commission has imposed a P1.1 million fine on Fast Coin Lending Corp. for unfair debt collection practices, excessive interest rates, and disclosure failures.
Regulators found the company violated multiple rules, including a 2019 circular banning abusive collection methods and a 2022 circular capping monthly interest and fees for lenders and their online platforms.
The action followed a borrower complaint alleging harassing text messages sent through the company’s CashGuard app, which issued loans across eight products and multiple accounts.
Investigators determined Fast Coin used public humiliation and disclosed personal borrower information, both prohibited under the debt collection rules.
The company’s “management fees” pushed effective interest rates beyond the 15% monthly ceiling when measured against actual borrower proceeds.
Fast Coin also failed to provide required loan agreements, disclosure statements, and amortization schedules under the Truth in Lending Act and related regulations.
Authorities noted the firm ignored directives to submit documents during the investigation, compounding its regulatory breaches.
The order emphasized that lenders must operate with transparency and accountability to protect financial consumers, and that the violations justified administrative sanctions.
