During the Senate Committee on Games and Amusement hearing on Thursday, August 14, Senator Juan Miguel “Migz” Zubiri pressed the Bangko Sentral ng Pilipinas (BSP) to investigate online lending applications allegedly connected to online gaming platforms.
The BSP responded that its regulatory scope is limited to banks and does not extend directly to online lending apps. However, Zubiri pointed out that these apps often appear when players run out of funds on gambling sites and BSP should also intervene in this case.
“Yung BSP should be also aware of the online lending apps because they are using it both legally and illegally for these online gaming sites. Pag natalo na po kayo, lalabas yung app, meron kayong pwedeng utangan.” Zubiri said
BSP maintained its stand that online lending apps fall under the jurisdiction of the Securities and Exchange Commission (SEC). However, Zubiri disagrees on this concept and asked the BSP to also take action on this matter.
Zubiri compared the apps’ tactics to those of loan sharks, warning that failure to repay could lead to harassment or criminal acts, which can cause in high criminal rate in the country.
The Senator also offered to work with BSP on legislation to prohibit such practices, ensuring that no Filipino can access high-interest online loans to fund gambling.
