SEC wants cap on finance, lending firms’ loan rates

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The SEC has proposed to the BSP a cap on lending rates of financing and lending companies, many of which operate online lending platforms, to prevent the charging of unconscionably high rates. | Philbizwatcher

BSP circular

“The rate will follow what the BSP mandated. We are in the process of preparing the IRR based on the BSP circular,” he said. In recommending to cap interest rates charged by lending firms, the SEC observed that elsewhere in the world, such caps similarly exist. In California in the United States, for instance, a law against usury caps loan rates.

 

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