Illegal loan apps in the Philippines are becoming a big problem. Many people are being scammed out of money; some have even been kidnapped and tortured. If you’re considering taking out a loan in the Philippines, do your research and only use a reputable lender.
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Table of Contents
The Problem of Illegal Loans in the Philippines
This problem has been gaining attention in recent years due to the increasing number of borrowers scammed or taken advantage of due to unscrupulous lenders. Illegal loan apps, often called “five-six” loans, are payday loans with extremely high-interest rates and often include hidden fees and other predatory practices.
These illegal loans can be found in both online platforms and physical locations, and the lenders typically target people with poor credit histories. The loans are often advertised as a quick fix to financial problems, but they can quickly lead to unmanageable debt and financial ruin.
As such, it is important for people to be aware of the dangers of illegal loans in the Philippines and to take steps to protect themselves. The most important step people can take is to educate themselves about the dangers of illicit loan apps in the Philippines and be aware of predatory lenders’ warning signs.
Some of the most common warning signs include lenders who require upfront fees; lenders who promise quick and easy access to funds; lenders who require confidential information, such as bank account numbers; and lenders who charge excessively high-interest rates.
It is also important to research lenders before engaging in any loan agreement to ensure they are legitimate and trustworthy.
Authorities That Review The Online Loan Apps’ Legality
The first step in the review process is for the lender to apply to the Department of Trade and Industry (DTI). The DTI will review the application and determine if the loan app is legal and compliant with the standards set by the Philippine government.
After this review, the loan app will be evaluated and approved by the DTI before consumers can use it. Once the loan app is approved, the lender must register with the Bangko Sentral ng Pilipinas (BSP). This is a requirement under the Philippine Consumer Protection Law.
After registering with the BSP, the lender must also submit a report to the Philippine Securities and Exchange Commission. This report will include information regarding the lender’s practices, policies, and financial stability.
The Philippine Securities and Exchange Commission will review the report and determine whether the loan app complies with existing laws and regulations. Once the information is approved, the lender can operate in the Philippines.
It is important to note that the review process for online loan apps in the Philippines can be lengthy and time-consuming. Therefore, potential borrowers need to research and ensure that any loan app they use is compliant with Philippine laws and regulations. This will ensure their financial safety, and they are not at risk of being involved in any illegal loan activity.
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P]Why Have This App Can Become Illegal
The primary reason why loan apps in the Philippines can become illegal is that the government does not regulate them and thus does not provide the necessary consumer protection. These apps can collect personal information and data, which can be used to commit identity theft and other financial crimes.
Additionally, they may charge high-interest rates, resulting in unaffordable debt. Another reason loan apps in the Philippines can become illegal is that they can be used to facilitate usury.
Usury is the practice of charging excessively high-interest rates and fees. This practice is unfair in the Philippines, and if caught, those engaging in it can face stiff penalties.
Illegal Lending Apps in the Philippines
Illegal Online Money Lending Apps In February 2022
The BSP has directed banks and other financial institutions to terminate existing relationships with these illegal loan apps and immediately cease any transactions with them. They have also advised the public to avoid using these apps and to come to them with any complaints.
The 8 identified illegal loan apps are 1. CashWill, 2. PesoBee, 3. RushLoan, 4. SkyMart, 5. SpendCash, 6. Tapa, 7. WithU, and 8. Peso T-Safe Online Cash. These apps target people who cannot afford to borrow from banks or other financial institutions due to their poor credit history.
They are taking advantage of this by offering easy access to high-interest loans, with borrowers expected to repay within a short timeframe. This is a dangerous practice that can lead to loan-sharking, debt traps, and other predatory lending practices that can cause borrowers financial hardship.
Illegal Online Money Lending Apps And Applications
One of the most popular illegal online loan apps in the Philippines is CashWill. CashWill is a mobile app that allows users to access small, short-term loans with a single click. While it may seem convenient, CashWill has been linked to numerous cases of illegal lending and has been accused of charging high-interest rates.
Another popular loan app is WithU, allowing users to apply for loans online and deposit the money into their bank accounts in just a few minutes. But, it has also been linked to illegal lending practices and high-interest rates, and the Philippine National Police have urged citizens to avoid using the app.
SpendCash is another illicit app loan that has been on the radar of the Philippine National Police. It is an app that allows users to borrow money quickly and with minimal effort. But the app has been linked to numerous cases of illegal lending, and users have complained of exorbitant interest rates.
Additionally, there are several other illegal loan apps in the Philippines, including MoneyCat, Easy Credit, and PayDay Loan. These apps offer quick and easy access to loans, but they also come with significant risks. They are linked to high-interest rates and cases of illegal lending, and users should exercise caution when dealing with them.
The central bank of the Philippines, the Bangko Sentral ng Pilipinas (BSP), has announced that it has permanently revoked the licenses of these lenders due to their involvement in illegal loan applications in the country. (source)
| Name of Lending Company | Date of Revocation |
| Flying Bear Lending Corp. | 21-Jul-22 08-Jun-22 |
| Cashtrees Lending Corp. | 06-Apr-22 16-Mar-22 |
| Fynamics Lending Inc. | 05-Jan-2022 06-Dec-21 |
| Familyhan Credit Corporation | 02-Nov-21 13-Apr-21 |
| KINGABC LENDING CORPORATION | 20-Sep-21 02-Aug-21 07-Jun-21 |
| CGFD Order: 18 s.2021 | 09-Mar-21 |
| 163 LENDING CORP. | 09-Mar-21 |
| BARAKAT LENDING INVESTOR CORPORATION | 09-Mar-21 |
| BASIC RESOURCES MICRO-LENDING CORPORATION | 09-Mar-21 |
| BASSIL & HASS LENDING CORPORATION | 09-Mar-21 |
| BYMONEY LENDING CORP. | 09-Mar-21 |
| DD CREDIT AND LENDING INVESTOR SERVICES, INC. | 09-Mar-21 |
| DIAMONDSTAR LENDING & CREDIT CORP. | 09-Mar-21 |
| DRAGON ORAGIF LENDING CORP. | 09-Mar-21 |
| DRAGOON LENDING CORP. | 09-Mar-21 |
| GINTONG BUKAS LENDING CORPORATION | 09-Mar-21 |
| GOLDEN ACE LENDING CORPORATION | 09-Mar-21 |
| GOLDEN SCION LENDING INVESTOR CORP. | 09-Mar-21 |
| GREAT RIVER LENDING INVESTOR GROUP, INC. | 09-Mar-21 |
| GREEN HEIGHTS CREDIT AND LOAN, INC. | 09-Mar-21 |
| GREENFUND CREDIT CORPORATION | 09-Mar-21 |
| IHF 115 LENDING CORPORATION | 09-Mar-21 |
| J-TEAM LENDING ENTERPRISES CORP. | 09-Mar-21 |
| JJ MONEYLINK INC. | 09-Mar-21 |
| JRP 2008 CREDIT CORPORATION | 09-Mar-21 |
| JULET MICRO EXPRESS CREDIT CORPORATION | 09-Mar-21 |
| KWARTA LINE LENDING INC. | 09-Mar-21 |
| LADY ANNE LENDING CORPORATION | 09-Mar-21 |
| LAIPOWER LENDING CORP. | 09-Mar-21 |
| LOTUS-4 GROUP LENDING CORP. | 09-Mar-21 |
| LUDYLAI LENDING CORP. | 09-Mar-21 |
| QUARIES LENDING CO., INC. | 09-Mar-21 |
| UNLAD PILIPINO CREDIT & LOANS CORP. | 09-Mar-21 |
| VALENZUELA LENDING INVESTOR INC. | 09-Mar-21 |
| UNIPESO LENDING COMPANY INC. | 09-Feb-21 03-Dec-20 |
| SUPER CASH LENDING CORP. | 07-Jan-21 11-Nov-20 |
| Z.C. BUEN MANO LENDING CORPORATION | 16-Jul-19 |
| MOOLA LENDING CORPORATION (FORMERLY: H LENDING BY HOVONO INC.) | 23-May-19
01-Aug-19 |
| Name of Lending Company | Date of Revocation |
| UNIRAPID LENDING TECHNOLOGY INC. | 21-Feb-21 03-Dec-20 |
| CGFD Order: 122 s.2020 | 23-Oct-20 |
| 163 LENDING CORP. | 23-Oct-20 |
| BARAKAT LENDING INVESTOR CORPORATION | 23-Oct-20 |
| BASIC RESOURCES MICRO-LENDING CORPORATION | 23-Oct-20 |
| BASSIL & HASS LENDING CORPORATION | 23-Oct-20 |
| BYMONEY LENDING CORP. | 23-Oct-20 |
| DD CREDIT AND LENDIGN INVESTORS SERVICES, INC. | 23-Oct-20 |
| DIAMONDSTAR LENDING & CREDIT CORP. | 23-Oct-20 |
| DRAGON ORAGIF LENDING CORP. | 23-Oct-20 |
| DRAGOON LENDING CORP. | 23-Oct-20 |
| GINTONG BUKAS LENDING CORPORATION | 23-Oct-20 |
| GOLDEN ACE LENDING CORPORATION | 23-Oct-20 |
| GOLDEN SCION LENDING CORPORATION | 23-Oct-20 |
| GREAT RIVER LENDING INVESTOR GROUP, INC | 23-Oct-20 |
| GREEN HEIGHTS CREDIT AND LOAN INC | 23-Oct-20 |
| GREENFUND CREDIT CORPORATION | 23-Oct-20 |
| IHF 115 LENDING CORPORATION | 23-Oct-20 |
| J-TEAM LENDING ENTERPRISES CORP. | 23-Oct-20 |
| JJ MONKEYLINK INC. | 23-Oct-20 |
| JRP 2008 CREDIT CORPORATION | 23-Oct-20 |
| JULET MICRO EXPRESS CREDIT INFORMATION | 23-Oct-20 |
| KWARTA LINE LENDING INC. | 23-Oct-20 |
| LADY ANNE LENDING CORPORATION | 23-Oct-20 |
| LAIPOWER LENDING CORP. | 23-Oct-20 |
| LOTUS-4 GROUP LENDING CORP. | 23-Oct-20 |
| LUDYLAI LENDING CORP. | 23-Oct-20 |
| QUARIES LENDING CO., INC. | 23-Oct-20 |
| UNLAD PILIPINO CREDIT & LOANS CORP. | 23-Oct-20 |
| VALENZUELA LENDING INVESTOR INC. | 23-Oct-20 |
(source)
Conclusion
The illegal loan apps in the Philippines are a major cause of concern for the country, as they are not only putting people into a cycle of debt but also creating a black market for loans and credit services.
Governments, regulators, and financial service providers must work together to ensure that users of these apps are protected and that these apps are shut down. We hope this writing has been a great help to you!
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