SEC probes lending, financing firms for Bayanihan Act violations

By Helen Veryan C. Valdez

BAGUIO CITY -- The Securities and Exchange Commission warned lending and financing firms to implement a grace period for a minimum of 30 days payment of all loans falling due within the Enhanced Community Quarantine Period.

Regina May Cajucom-De Guzman, SEC-BEO director said this grace period applies to due dates falling within the ECQ period, which originally was from March 17 to April 14.

“In view of the latest extension of the ECQ until May 15, 2020, the grace period is also automatically extended in accordance with the IRR crafted by the Department of Finance,” she said.

The SEC had reportedly been receiving reports and complaints against lending and financing companies that allegedly refuse to comply with Section 4(aa) of Republic Act No. 11469, aptly known as the Bayanihan to Heal as One Act, and its implementing rules and regulations.

In accordance with RA 11469, the national government directed all banks, quasibanks, financing companies, lending companies, and other financial institutions to implement the grace period.

The Commission revealed that a number of financing and lending institutions are currently being investigated for possible violation of the law.

              The SEC warned all financing and lending companies that any violation or non-compliance of the Bayanihan Act shall be subject to appropriate penalties provided under the said law, as well as under other applicable statutes and guidelines.

“The COVID-19 pandemic has affected everyone across the globe in one way or another, with thousands of lives being lost and livelihoods being disrupted,” SEC Chairperson Emilio B. Aquino said. “In these trying times, the compliance of lending and financing companies with the mandatory grace period and other emergency measures being implemented would greatly help our fellow Filipinos recover from the pandemic.”