WITH many Filipino borrowers turning to informal lenders, authorities crack down on their predatory practices as industry players take measures to educate and protect loaners.
The Securities and Exchange Commission (SEC) has intensified over the last three months its campaign against lenders, either registered or not, with a series of orders, raids, and arrests for their abusive debt collection activities that range from unauthorized access to debtors’ phone directories to offline contact with threats of physical harm.
The SEC’s implementation of the Financial Products and Services Consumer Protection Act and other related laws has been facilitated by the Philippine National Police Anti-Cybercrime Group and the Department of Justice.
Meanwhile, the Department of Finance has recently called on financial technology (fintech) companies to work together to protect consumer confidence in the digital markets.
Tala is among the firms that supports and commits to prevent unauthorized lenders from taking advantage of Filipinos, especially the unbanked and underserved.
“Tala commits to treating debtors fairly and humanely,” said Tala Senior Director for Global Customer Experience Operations Iona Iñigo-Mayo. “We stand with the government in its efforts to enforce regulations that protect borrowers who are underestimated. We also stand with the digital lending platforms that educate customers on borrowing responsibly and how to protect themselves from fraud.”
With its digital lending platform and social media network, the fintech group urges the public to deal only with verified financing and lending companies and to report abusive debt collectors and unregistered lenders. The firm also has a library of financial literacy content in its app such as tips on borrowing responsibly.
Upholding data privacy and consumer protection laws, Tala earns a 94-percent trust rating in the Philippines based on its third-party 2022 impact report.
“At Tala, we work hard to build relationships of trust with our borrowers,” Iñigo-Mayo said. “We would not betray that trust by selling their personal information or using unfair collection practices.”
Digital lender backs clampdown on creditors’ predatory activities
Source: News Paper Radio
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