SEC flags unauthorized online lender, gym co-ownership scheme

MANILA, Philippines – The Securities and Exchange Commission (SEC) has issued separate advisories warning the public against an unauthorized online lending platform and an unregistered gym investment program, urging consumers to verify entities before transacting.

The SEC flagged CredLadder, an online lending app reportedly operating without the necessary regulatory authority.

According to the commission, CredLadder has been actively advertising its services online and offering its app — listed as “CredLadder: Credit Insights” — for download on Google Play, despite not appearing in the SEC’s database of registered online lending platforms.

READ MORE: SEC probes financing, lending companies for alleged non-compliance of 30-day grace period for loans

Its operations allegedly violate the Lending Company Regulation Act of 2007.

Beyond operating without a license, the SEC said CredLadder has drawn complaints for imposing excessive interest rates and employing abusive debt collection tactics.

These reportedly include threatening and humiliating messages, disclosure of borrowers’ personal data, and contacting people from a borrower’s contact list who have no role as guarantors or co-makers — practices the SEC said may violate the Financial Products and Services Consumer Protection Act (FCPA) and its implementing rules.

The platform was also reportedly using FlexiFund, FundXpress, QuickPesa, and Paymatic as remittance agents in its lending transactions.

Gym co-ownership

In a separate advisory, the SEC warned against Pro Fitness Gym Corporation, which allegedly solicited investments through a “Gym Co-Ownership” program promising monthly dividends of 3 percent to 35 percent of net income.

READ MORE: SEC warnings on KAPA and others

The regulator clarified that holding an SEC registration does not authorize a company to offer or sell securities and investment products — entities must separately register such offerings with the agency before these can be legally marketed to the public.

The SEC urged the public to avoid or withdraw from the scheme and cautioned that promoters — including salesmen, brokers, agents, recruiters, endorsers, and influencers — could face criminal liability under the Securities Regulation Code and the FCPA, with penalties ranging from fines to imprisonment.

The regulator advised consumers to verify companies through the official SEC website and the SEC Check App, avoid advance payments, and refrain from sharing personal or financial information with unverified entities.

READ MORE: SEC issues twin warnings on investment, lending schemes

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