The Securities and Exchange Commission (SEC) has imposed an administrative fine of P50,000 on Global Dominion Financing, Inc., in response to complaints filed by a borrower alleging unfair debt collection practices by the company’s third-party agents. In addition to the fine, the SEC has issued a stern warning, urging the financing firm to strictly adhere to lawful, fair, and consumer-protective debt collection standards. The SEC further cautioned that any future violations could result in more severe penalties, including the possibility of higher fines, suspension, or even revocation of the company’s certificate of authority.
The SEC’s action follows a complaint from a borrower who reported being subjected to abusive debt collection tactics, including threats, insults, and harassment by agents hired by Global Dominion Financing. These actions were reportedly carried out due to delayed payments, violating the standards outlined in the SEC’s Memorandum Circular (MC) 18 and the Fair Collection Practices Act (FCPA).
MC 18 and the FCPA specifically prohibit acts such as the use or threat of violence, criminal behavior to harm a person’s reputation or property, the use of offensive or profane language in dealings with borrowers, and contacting individuals outside the borrower’s designated contacts—such as guarantors or co-makers—during collection efforts.
“The SEC is committed to protecting consumers and ensuring that financing companies uphold the highest standards of ethical conduct,” said [SEC Official’s Name], [Title]. “We expect all industry players to follow the rules and treat borrowers with respect. Any company found in violation of these principles will face serious consequences.”
Global Dominion Financing has been instructed to revise its debt collection procedures immediately and ensure all third-party agents comply with consumer protection laws. The company has also been reminded that any recurrence of such misconduct will lead to more stringent penalties and actions, as necessary.
