HINANCE LENDING INVESTORS CORP. doing business under the name and style of HotCash, VI PESO and KindCash

Commission Securities and Exchange

BACONG PILIPINAS

FINANCING AND LENDING COMPANIES DEPARTMENT

IN THE MATTER OF: FLCD CDO Case No._05

Series of 2025.

Chino Roces Avenue, Makati City HINANCE BUSINESS HOTCASH, (CS2022060054530-01) 28F Cityland Pasong Tamo Tower, 2210 LENDING UNDER V THE PESO, INVESTORS NAME AND AND CORP. KIND Respondent. STYLE DOING CASH OF FOR:VIOLATION OF SEC MEMORANDUM SERVICES CONSUMER PROTECTION ACT CIRCULARNO.19,SERIES MEMORANDUM CIRCULAR NO.1O,SERIES OF 2021,AND FINANCIALPRODUCTS AND OF 2019

CEASEAND DESISTORDER

Commission ("SEC') regarding the alleged operation of the unrecorded Online Lending Platform ("OLP" Peso and KindCash ("the Respondent"). Magic Peso,by Hinance Lending Investors Corp.doing business under the name and style of HotCash,VI This refers to the verified third-party information received by the Securities and Exchange

Antecedents

2022060054530-01 and Certificate of Authority No. L-22-0203-35. Its primary purpose is: The Respondent is a registered lending corporation under SEC Registration No. CS

"to engage in the business of direct lending without however in pawn-broking under Presidential Decree No.114and financing under R.A.8556,provided that the borrowing shall be sourced from not more than nineteen (19) lenders including

and Reporting of Online Lending Platforms (MC Nos. 18 and 19, Series of 2019) Memorandum Circulars on (1) Prohibition of Unfair Debt Collection Practices of Financing Companies (FC) and Lending Companies (LC) and (2) Disclosure Requirements on Advertisements for Financing Companies and Lending Companies respectively). shareholders.Provided, however,that there shall be continuing compliance of SEc

and utilized the following OLPs: (1) KindCash; (2) VI Peso; and HotCash. Platform ("MC 19"). Its business plan on record, however, disclosed that the Respondent owned, operated, any disclosure pertaining to any OLP under Memorandum Circular No. 19, Series of 2019, or the Disclosure Requirements on Advertisements for Financing and Lending Companies and Reporting of Online Lending A perusal of the Respondent's records in the Commission shows that the Respondent did not file

The Commission has received verified information indicating that the Respondent is the owner

Commission summoned the third-party payment processing provider for Magic Peso, which confirmed the Commission's earlier findings. The provider stated that all payments made by users and borrowers of Magic Peso are received and directed to the Respondent's account. In other words, the ongoing operation of Magic Peso directly benefits the Respondent New Online Lending Platform imposed by Memorandum Circular No. 10, Series of 2021 ("MC 10), and the Financial Products and Services Consumer Protection Act ("FCPA"). To support this information, the and operator of an undisclosed and unrecorded OLP Magic Peso in violation of MC 19,the Moratorium on

the Respondent within three (3) days to explain its side and raise all available defenses. However, as of this writing, the Respondent has not complied with the Show Cause Letter. As part of due process, the Commission issued a Show Cause Letter dated 25 June 2025, directing

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Hinance Lending Investors Corp Page 2 of 2

RECease and Desist Orde

Issue

violation of MC 19, MC 10, and the FCPA? Whether a Cease and Desist Order should be issued against the Respondent on account of its

Ruling

The Commission finds issuing a Cease and Desist Order against the Respondent warranted.

this Magic Peso are rendered useless. Moreover, its borrowers are at risk of experiencing abusive collection 10, and FCPA. By operating an undisclosed OLA, the Commission's supervisory authority and power over practices, high-interest rates, and violation of their data privacy rights. The Respondent's nondisclosure of its operation and ownership of Magic Peso violates MC 19, MC

or practice, unless restrained, amounts to fraud or a violation of the provisions of the FCPA and/or the SEC FCPA IRR, or may unjustly cause grave or irreparable injury or prejudice to financial consumers, to wit: 6(d)(4) of the FCPA, as implemented by MC No. 05, Series of 2023, authorizes the Commission to issue a cease and desist order without the necessity of a prior hearing if in the Commission's judgment, the act To ensure that the Commission is able to perform this mandate and to protect the public, Section

Powers of the SEC "RULE 6

Section 1. Powers of the Commission. -- The Commission shall, in the implementation of these Rules and the provisions of the FCPA, have the following powers:

D. Enforcement. The Commission shall have the authority to impose enforcement and authority of the Commission. of the FCPA, SEC FCPA IRR, and other existing laws pertinent to the jurisdiction actions against financial service providers for noncompliance with the provisions

Such enforcement actions may include the following:

the SEC FCPA IRR, or may unjustly cause grave or Issuance of a cease and desist order ("CDO") to a financial service provider without the necessity of a prior hearing if, in the Commission's judgment, the act or practice unless restrained, amounts to fraud or a violation of the provisions of the FCPA and/or financial consumers. A CDO is immediately executory upon service or publication on the Commission's website. [Emphasis supplied] r irreparable injury or prejudice to

issuance of a CDO is warranted in the instant cas fraud, injury, or harm to the public and financial consumers who are at the Respondent's mercy. On account of the Respondent's continuing operation of Magic Peso, the Commission holds that the ot only to penalize the Respondent but also to prevent

UNDER THE NAME AND STYLE OF HOTCASH,VI PESO,AND KIND CASH including its oWners,operators THEIR BEHALF, are hereby DIRECTED to immediately CEASE AND DESIST from engaging in, carrying out, promoting and facilitating any lending activity or transaction. romoters, representatives, agents, AND ANY AND ALL PERSONS CLAIMING AND ACTING FOR AND, IN WHEREFORE,premiseS Considered, HINANCE LENDING INVESTORS CORP. DOING BUSINESS

SO ORDERED.

July 2025, Makati City.

EAMN ty.Kenneth J Quimio

YMg&y DIC-Dir

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