MANILA --The Securities and Exchange Commission (SEC) is eyeing accreditation for third-party debt collection agencies.
Under its draft memorandum circular, the SEC said only third-party collection agencies (TPCAs) and internal collection agents of financing and lending companies may engage in debt collection activities.
A TPCA may apply for accreditation by filing an application with the SEC online system. The agency will then be included in the SEC's registry of accredited TPCAs, which will be published on the online SEC database.
This accreditation is valid for three years.
A third-party collection agency found to be involved in unfair debt collection practices, including unlawful house visits and use of system-generated and automated messages, may be fined any amount from P60,000 up to P200,000.
They may be delisted on the fourth offense, and their accreditation may be revoked.
Directors and officers of TPCAs involved in unfair debt collection practices may also be blacklisted by the SEC.
On top of these, financing and lending companies may also be fined up to P2 million for fraudulently engaging with non-accredited or non-disclosed third-party agencies. The lending firm's certificate of authority may be suspended or revoked on its fourth offense, and in rare cases, its articles of incorporation may be revoked as well.
The SEC said the guidelines will bring third-party debt collectors under its direct supervision and set uniform standards of conduct for debt collection. This will better protect borrowers from abusive collection practices.
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