According to the SEC, Bravo Zulo Romeo and Magic Peso offered short-term loans online through mobile apps and websites without securing a valid certificate of authority to operate as lending companies. Their operations were found to be deceitful, with reports of aggressive debt collection practices and privacy violations surfacing from distressed borrowers.

In its cease-and-desist order, the SEC noted that these firms “posed an imminent threat to the interest of the investing public.” The regulator emphasized that lending without proper registration not only breaches Philippine laws but also undermines trust in the digital finance ecosystem. The Commission found that BZR Lending and Magic Peso had failed to disclose interest rates, misrepresented repayment terms, and engaged in harassing collection practices, including public shaming and threatening messages sent to borrowers’ contacts.

This enforcement action follows mounting complaints from consumers, prompting an SEC investigation. Authorities revealed that the platforms gained traction through misleading marketing, promising “instant loans” with “no collateral” but failing to disclose hidden fees and punishing penalty structures.

The SEC’s action is part of a broader push to rein in unregistered and abusive digital lending entities, which have proliferated with the rise of fintech in the Philippines. The regulator has, in recent months, intensified its surveillance of online lending platforms, issuing repeated warnings to the public about the dangers of dealing with unregistered lenders.

Consumers who have borrowed through Magic Peso or Bravo Zulo Romeo Lending are advised to cease further payments unless through formal and legal channels, and to report any threats or harassment to the National Privacy Commission and the SEC.