THE Business Bureau Licensing Permits Division has yet to receive a formal complaint against lenders of the usurious "5-6" system which is facing a crackdown following the order issued by the Duterte administration.
Marasigan-Torentera, licensing permits division head, said Saturday, January 14, loan sharks or those people lending money under the "5-6" system are disallowed to operate in the country.
She said any individual can actually engage into lending because they would not have to go through the Security and Exchange Commission (SEC) but she emphasized that this is not right. She said a business requires necessary documents in order to operate.
"We do not provide business permit for individual entrepreneur. Kung mag business sila, then they are really required to apply for permit. Supposedly, any individual are not allowed to lend money," Marasigan-Torentera said.
On Tuesday, Department of Justice Secretary Vitaliano Aguirre said President Rodrigo Duterte ordered a crackdown against foreign nationals involved in the system.
Indian nationals or "Bumbays" are noted to engage in the business targeting small entrepreneurs. Considered an informal lending business, it charges 20 percent interest in loans and collects payments on a daily or weekly basis.
The system is attractive to most Filipinos engage in small businesses like sari-sari stores because you can easily borrow money without going through rigorous processes.
The official warned any foreign nationals will be deported if they do not stop extending loans at exorbitant interest rates. (Ivy C. Tejano/SunStar Philippines)