Global Dominion Financing says SEC action on debt collection arose from isolated case

GLOBAL DOMINION Financing, Inc. (GDFI) said the recent Securities and Exchange Commission (SEC)-reported incident involving debt collection practices was isolated and that it has taken steps to strengthen compliance and oversight in its collection operations.

“While the matter arose from an isolated case, we take it seriously and have taken steps to reinforce our compliance and oversight processes, particularly in relation to collection practices,” the company told BusinessWorld in an e-mail seeking comment.

“We acknowledge the administrative fine imposed by the SEC and respect the Honorable Commission’s decision,” it added.

Global Dominion Financing is a SEC-regulated financial institution providing loans for Filipino customers’ needs, including cars, business capital, tuition, home improvements, emergencies, and medical expenses, with flexible payment options.

The company said it is fully committed to regulatory compliance and maintaining professional standards in all borrower interactions.

“GDFI maintains compliance and consumer protection frameworks aligned with applicable laws and regulations, and we continue to strengthen internal controls and monitoring systems to ensure consistent and responsible implementation across our operations and partner engagements,” it noted.

In a statement on Tuesday, the SEC imposed a P50,000 administrative fine on Global Dominion Financing for what it described as debt collection practices that violated applicable rules.

The SEC Financing and Lending Companies Department (FLCD) found that Global Dominion violated Section 1 (A), (B), and (H) of SEC Memorandum Circular (MC) No. 18, Series of 2019, and Section 4.4 (A), (B), (H), and (I) of the implementing rules and regulations of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA). 

The order arose from a borrower’s complaint about third-party agents of the financing firm, who reportedly used road intercepts, repeated text messages demanding immediate partial payments, and threats over late payments.

Aside from the fine, the Commission ordered Global Dominion to adhere to debt collection standards under the law, while noting that repeat violations could result in higher fines or suspension/revocation of its operating authority.

MC 18 and the FCPA prohibit debt collection practices that use or threaten violence or criminal means to affect a person, reputation, or property; the use of insulting or profane language against borrowers; and contacting individuals in a borrower’s contact list, except for guarantors or co-makers. — Alexandria Grace C. Magno