Below are some guidelines and resources you can use to check whether an online lending app operating in the Philippines is legitimate. While these tips should help you evaluate an app’s credibility, always exercise due diligence and caution before sharing personal or financial information.

1. Check the Securities and Exchange Commission (SEC) Registration

In the Philippines, lending companies and financing companies must be registered and supervised by the Securities and Exchange Commission (SEC). The SEC maintains a list of registered lending companies and financing companies on its website.

SEC Lending Companies List: The SEC website typically provides an updated list of registered entities. Look for the company’s exact legal name. If you can’t find the entity or see a mismatch in the name, be cautious—some apps use slightly altered or “doing business as” names to mislead borrowers.
Certificate of Authority to Operate: Beyond being incorporated, online lending platforms are also required to have a secondary license or Certificate of Authority to Operate. Ask the lending app to provide a copy (or a reference to) their Certificate of Authority or check with the SEC if the authority number they provide is valid.

How to verify on your own:

Visit the official SEC website (or contact them via phone/email if the website is inaccessible or not up-to-date).
Look for a “Registered Lending and Financing Companies” or “Notice to the Public” page.
Verify that the legal entity name matches what is displayed on the lending app’s documents.

2. Check for Other Regulatory Credentials

A. Bangko Sentral ng Pilipinas (BSP) Registration

While many online lending apps are directly regulated by the SEC, some are affiliated with banks or other financial institutions that may need to be registered or supervised by the Bangko Sentral ng Pilipinas (BSP). If the platform claims affiliation with a bank, double-check that affiliation on the BSP’s list of supervised financial institutions.

B. DTI and Business Permits

Additionally, legitimate businesses should also have the necessary local government permits (e.g., Mayor’s Permit, Barangay Clearance, DTI registration for sole proprietorships, etc.). However, for lending companies specifically, the SEC accreditation and certificate are the highest priority checkpoints.

3. Review the App’s Terms and Conditions

Legitimate online lending apps will clearly state the following in their terms and conditions or disclosures:

Interest Rates: These should be transparently stated (monthly, annual, or effective interest rate).
Fees and Charges: Any administrative fees, processing fees, or penalty charges for late payment should be visible upfront.
Data Privacy Policy: They must disclose how they collect, store, and protect your personal information, complying with the Data Privacy Act of 2012 (RA 10173).
Collection Practices: Legitimate lenders follow fair collection practices. Any mention of harassment, threats, or unauthorized access to your contacts list (outside of what is legally allowed) is a red flag.

If any of this information is missing, vague, or overly complicated, treat that as a warning sign.

4. Check Customer Feedback and Reputable Review Platforms

Because some apps may have SEC registration but still engage in shady practices (like exorbitant hidden fees or unethical debt collection methods), it’s wise to see what other users are saying:

Consumer groups on social media: Look for borrower experiences, noting any repeated patterns of harassment, data misuse, or hidden charges.
Financial forums and watchdog groups: Look for in-depth discussions about the lender’s credibility and experiences from verified customers.

Keep in mind that some reviews can be fake or sponsored, so weigh both the positive and negative feedback carefully. Look for consistency in complaints or red flags.

5. Watch Out for Red Flags

Even if an app is claiming SEC registration, you should remain vigilant about certain signs that often indicate a scam or an unscrupulous lender:

Unclear Fee Structures or Interest Rates: Lenders refusing to disclose interest rates or adding “service fees” after the loan is disbursed.
Pushy Agents: Aggressive sales tactics or immediate demands for personal data (like your entire contact list) can be indicative of future harassment if you miss payments.
Requests for Upfront Payments: A legitimate lending company will not require you to pay “advance fees” or “collateral fees” before they grant a loan.
Excessive Permissions on Your Phone: Apps that require invasive access to your device—beyond what’s needed for identity verification—could be misusing your data.
Unprofessional Communication: If an app’s support channels are unresponsive or only available through suspicious emails or messaging apps, it could signal a lack of legitimacy.

6. Confirm the Physical Address and Contact Information

Legitimate businesses have verifiable physical addresses and contact information. They will typically display:

Office Address: A valid, registered office address in the Philippines.
Customer Support: A reachable phone number, email, or live chat feature.
Operating Hours: Stated business hours.

If you cannot confirm the address or contact details through a credible source (e.g., the SEC filings or official website), that’s a sign to proceed with caution.

7. Contact the SEC or Local Authorities When in Doubt

If you encounter an online lending app whose legitimacy you cannot confirm through the usual channels, consider the following steps:

File a Query or Complaint with the SEC: You can email or call the SEC to verify the company’s registration status or lodge complaints about suspicious activities.
Reach Out to the National Privacy Commission (NPC) if you believe the app is violating data privacy regulations.
Alert Local Consumer Protection Groups or your local barangay/city government if you suspect fraudulent activity.

Key Takeaways

Always verify an online lender’s registration status on the SEC’s official list.
Review terms, interest rates, and fees carefully before agreeing to a loan.
Assess user feedback on social media or reputable consumer platforms to spot patterns of misconduct.
Report suspicious apps to the SEC, NPC, or other relevant agencies if you believe they are operating illegally or unethically.

By following these guidelines, you’ll be better equipped to identify legitimate lending apps versus those that might be operating illegally or engaging in unfair lending practices. If you remain uncertain after doing all these checks, it’s generally safer to look elsewhere for financial services or seek out established banks and reputable lending institutions.