MAKATI CITY, 27 March 2020 – The country’s central credit registry, Credit Information Corporation (CIC), expressed its full support to the Securities and Exchange Commission (SEC) in its call to all financing and lending companies to adopt measures that will ease the burden of Filipino borrowers in view of the enhanced community quarantine versus COVID-19.

“We extend our unwavering support to the SEC in strongly encouraging these companies to develop and implement schemes to provide financial relief to their borrowers during these trying times,” CIC President and CEO Jaime Casto Jose Garchitorena said.

In a notice dated 23 March 2020, the SEC strongly encouraged financing and lending companies to implement a payment holiday; extend loan terms; lower interest rates; waive/reduce penalties, charges, and other fees; suspend collection; or initiate debt consolidation, among others.  

While the CIC has no direct supervision over lending corporations, it joins the SEC in helping consumers avoid over-indebtedness and calling out abusive lending practices and exorbitant interest rates.

“The CIC has been receiving numerous complaints from borrowers who are allegedly being harassed by lenders and debt collectors. Some even go to the extent of disguising themselves as representatives or employees of the CIC to scare distressed borrowers to pay their loans despite the lockdown,” Garchitorena shared.

The CIC advises everyone to be wary of individuals or institutions disseminating information while misrepresenting as employees of the CIC.  ​

“The CIC will never be part of any direct collection effort,  nor will CIC employees contact borrowers directly,” the PCEO warned.  

Garchitorena likewise assured the public that the CIC is already working with law enforcement and other government agencies to resolve the issue.