The Securities and Exchange Commission (SEC) has cancelled the corporate registration and financing license of Digido Finance Corp. for opening and running four branches without the necessary approval.
Digido Finance operates the online lending platforms UnaPay and UnaCash. In an order dated May 9, the SEC’s Financing and Lending Companies Division (FinLenD) found that the company violated government rules by setting up branches without a certificate of authority from the Commission.
Section 6(A) of the Implementing Rules and Regulations of Republic Act No. 8556, also known as the Financing Company Act of 1998, clearly states that financing companies must first secure this certificate before establishing any branch, agency, or extension office.
Because of this violation, the SEC revoked both Digido Finance’s certificate of authority to operate as a financing company and its registration as a corporation.
The SEC has been strict in enforcing rules on online lenders to help protect borrowers from unfair lending practices.
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