The Securities and Exchange Commission (SEC) has ordered Convenience Cash Lending Corp. to stop its lending operations, including those conducted through the online platforms Zada Cash and Bloom Cash.
In a cease and desist order (CDO) dated May 27, the SEC’s Financing and Lending Companies Division directed the company to immediately shut down all its lending activities. The order also applies to its online platforms.
The SEC said the company was operating without proper registration and failed to comply with an earlier order issued on July 6, 2023. That order required all online lending platform operators to register with the Credit Information Corp., as stated under Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act.
“The issuance of the CDO is necessary to protect the public and financial consumers from potential fraud, injury, or harm associated with unregistered lending activities,” the SEC said.
The Commission has repeatedly reminded lending and financing companies that they must register their online platforms with the Credit Information Corp. This requirement aims to increase transparency and protect borrowers from abusive practices.
Convenience Cash Lending Corp. is not the first company to face regulatory action from the SEC this year. The agency continues to monitor and act on complaints involving lending firms that do not follow legal requirements.
As of this writing, the websites and mobile apps linked to Zada Cash and Bloom Cash are no longer accessible. The SEC advised consumers to be cautious when dealing with unregistered lenders.
Get the latest before it trends. Follow Back End News on LinkedIn, Facebook, X, YouTube, and TikTok for updates and in-depth coverage across the tech and security landscape.