MICRODOT LENDING CORPORATION

Exchange Securities an LLUL

PINF

FINANCING AND LENDING COMPANIES DEPARTMENT

IN THE MATTER OF: Certificate of Authority No. 2921) MICRODOT LENDING CORPORATION (SEC Registration No. CS201951287 and Respondent, RE: FinLenD CDO Case No. I3 Series of 2025 Circular No. 19, Series of 2019, the of the Lending Company Regulation and Services Consumer Protection Act. Violation Implementing Rules and Regulations Act of 2007, and Financial Products of SEC Memorandum

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CEASE AND DESIST ORDER

and Services Consumer Protection Act of 2022 ("SEC-FCPA-IRR").3 and Lending Companies Department ("FinLenD') regarding Microdot Lending Corporation for violations of SEC Memorandum Circular No. 19, Series of 2019 ("SEC MC 19"),1 the Implementing Rules and Regulations of the Lending Company Regulation Act of 2007 ("LCRA-IRR"),2 and SEC Rules and Regulations of the Financial Products This refers to the results of monitoring and surveillance, and the complaints received by the Financing

Antecedents

"Commission") as a lending corporation under SEC Registration No. CS201951287 and Certificate of Authority No. 2921, with "Credit Cash," "Credit Peso," "Cash Baka," "Cash Mabilis," and "Go Peso" as its disclosed Online Lending Applications ("OLAs"). The Respondent is registered before the Securities and Exchange Commission ("SEC" or the

not more than nineteen (19) lenders including shareholders. 114 and financing under R.A. 8558, provided that borrowing shall be sourced from Its primary purpose is: To engage in business as a lending investor, and to such extent, grant or lend money to persons and/or entities, whether private or public, in the form or loan/credit, without however engaging in the business of pawnbroking under P.D.

undisclosed OLPs--Credit Peso Pro and MF Cash--in violation of Section 3 of the SEC MC 19. A review of the Respondent's files with the Commission reveals that the Respondent operated two

lawful orders of the Commission, specifically those issued in the Show Cause Letter dated 25 April 2025, Assessment Letter dated 2 May 2025, Letter dated 27 May 2025, and Walkthrough Audit Findings dated 1 August 2025. The Company likewise violated Rule 8(c) of the LCRA-IRR for its continuous non-compliance with the

commission of unfair debt collection practices in violation of the SEC-FCPA-IRR. Moreover, from 2024 to the present, multiple complaints were lodged with the Commission for alleged

Issue

violations of the LCRA-IRR, SEC MC 19, and SEC-FCPA-IRR Whether a Cease and Desist Order ("CDO") should be issued against the Respondent on account of its

1 Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms. 3 SEC Memorandum Circular No. 05, series of 2023. 2 Republic Act No. 9474.

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Securities and Exchange Commission ILIPPINES Re: Microdot Lending Corporation Cease and Desist Order Page 2 of 2

Ruling

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

by the SEC-FCPA-IRR empowers the Commission to issue a cease and desist order without the necessity of a prior hearing if, in its judgment, the act or practice, unless restrained, amounts to fraud or a violation of the provisions of this Act and its IRR, or may unjustly cause grave or irreparable injury or prejudice to financial consumers, to Wit: Section 6(d)(4) of the Financial Products and Services Consumer Protection Act ("FCPA"), as implemented

have the following powers: SEC. 6. Powers of the Financial Regulators. - Financial regulators under this Act shall

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noncompliance with this Act and other existing laws pertinent to the jurisdiction and authority of the respective financial regulators. Such enforcement actions may (d) Enforcement - Financial regulators shall have the authority to impose include the following: enforcement actions on their respective supervised financial service providers for

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its act or practice in a summary hearing before the financial regulator or its designated body, upon request made by the financial service provider within five (5) technical rules of evidence, and all issues shall be determined primarily on the basis of records, after which the financial regulator may either reconsider or finalize and (4) Issuance of a cease and desist order to the financial service provider without the necessity of a prior hearing if in the financial regulator's judgment, the act or practice, IRR, or may unjustly cause grave or irreparable injury or prejudice to financial consumers. The financial service provider shall be afforded an opportunity to defend execute its order; unless restrained, amounts to fraud or a violation of the provisions of this Act and its period, the order shall be final. If a hearing is requested by the financial service provider, the proceedings shall be conducted summarily without adhering to the calendar days from its receipt of the order. If no such hearing is requested within said

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over it, and practice of unfair debt collection, if unrestrained, may unjustly cause grave or irreparable injury or prejudice to the borrowing public, thereby imperiling their rights as enshrined in the FCPA. Additionally, its employment of unfair debt collection practices,shown and established by substantial evidence,is a violation of The Respondent's operation of the undisclosed OLPs, blatant disregard of the SEC's regulatory authority

the SEC-FCPA-IRR and should be immediately halted to safeguard the rights of its borrowers.

Credit Cash, Credit Peso, Pesoloan Mart, Cash Baka, Cash Mabilis, Go Peso, Instant Loan, and Timely Loan including its owners, operators, promoters, representatives, agents, AND ANY AND ALL PERSONS CLAIMING AND WHEREFORE, premises considered, MICRODOT LENDING CORPORATION and its OLPs-Mfcash,

in, carrying out, promoting and facilitating any lending activity or transaction. ACTING FOR AND,IN THEIR BEHALF,are hereby DIRECTED to immediately CEASE AND DESIST from engaging

23 September 2025. Makati City, Philippines.

SHEARA L. LUPANGO-TAMAYO Arector

/rla

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