Scope of Penalties
- The penalties apply to violations of the Lending Company Regulation Act of 2007 and its IRR.
- They are directed towards lending companies operating under the law and their responsible officers and directors.
Types of Penalties and Their Application
- Administrative penalties include suspension of the lending company’s secondary license.
- Suspension is generally set for a period of sixty (60) days.
- Suspension period begins from the date the company receives the Order of Suspension.
- Suspension and other penalties follow due process, specifically notice and hearing.
Additional Legal Consequences
- Administrative sanctions do not preclude criminal prosecution.
- Responsible officers and directors may face criminal actions for violations, particularly under Section 12 of R.A. No. 9474.
Publication and Effectivity
- The Memorandum Circular detailing penalties is required to be published in two newspapers of general circulation.
- The penalties and provisions take effect fifteen (15) days after the date of the last publication.
Important Legal Concepts
- Due process is strictly observed before imposing suspension.
- Separation of administrative and criminal liability is maintained.
- The SEC acts as the regulatory authority enforcing the provisions governing lending companies.