Digido Finance files appeal after SEC order

DIGIDO FINANCE CORP. said it has fully complied with directives following the Securities and Exchange Commission’s (SEC) Feb. 18 order, including suspending loan issuance while preserving its right to challenge the decision.

The company said it filed a motion for reconsideration to present its position.

“The company also respectfully takes a different view on the basis of the fine and the cited violations, and has submitted an appeal for further consideration,” the company said in a statement e-mailed to BusinessWorld.

Digido Finance said its relevant operations were suspended while the case is being reviewed.

“The company made sure to comply with all applicable regulations and will remain fully committed to transparency and adherence to all regulatory requirements,” it noted.

In an order dated Feb. 18, the commission directed Digido Finance Corp. to permanently cease all financing operations after finding it liable for continuing business despite the revocation of its corporate registration and secondary license, violating Sections 12(b)(1) and (2), and 14 of the Financing Company Act’s implementing rules and regulations.

It also ordered Digido to pay a P600,000 administrative fine, consisting of P100,000 each against the company and its five officers. 

The SEC’s Financing and Lending Companies Department (FLCD) rejected Digido Finance Corp.’s argument that the order was not yet final or appealable, saying that revocation orders qualify as immediately executory under the 2016 SEC Rules of Procedure.

The FLCD said Digido continued processing and approving loan applications, disbursing funds to borrowers, issuing disclosure statements and promissory notes, and maintaining active loan accounts.

It also said that Digido had been handling loan servicing and collections through Fingertip Finance Corp., a wholly owned subsidiary of Singapore-based Robocash Pte. Ltd. — Alexandria Grace C. Magno