What is the SEC MC 18?
Last updated: 2026-05-04 · Educational content; not legal advice.
Short answer
SEC Memorandum Circular No. 18, series of 2019, prohibits unfair debt-collection practices by SEC-registered lending and financing companies. It bars contacting the borrower's contacts, employer, or family without consent; using profane language; threatening criminal prosecution without legal basis; and calling between 10 PM and 6 AM. Violations carry administrative fines of ₱25,000–₱1,000,000 per count and possible suspension or revocation of the Certificate of Authority.
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Frequently asked
Does SEC MC 18 cover banks?
No. Banks are BSP-supervised and bound by BSP Circular 1048 and the MORB. SEC MC 18 specifically covers SEC-registered lending and financing companies and their collection agents.
Are debt-collection agencies covered?
Yes, by reference. The SEC-registered principal is liable for the acts of its third-party collectors per MC 18 §3.
Can I sue under MC 18?
MC 18 is administrative — the SEC enforces it. Civil claims for damages remain available under the Civil Code (Articles 19–21, 26) and RA 10173 for any privacy violation.
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More questions
Does SEC MC 18 cover banks?
No. Banks are BSP-supervised and bound by BSP Circular 1048 and the MORB. SEC MC 18 specifically covers SEC-registered lending and financing companies and their collection agents.
- Source:SEC Memorandum Circular 18, s. 2019
- Source:BSP Circular 1048
Are debt-collection agencies covered?
Yes, by reference. The SEC-registered principal is liable for the acts of its third-party collectors per SEC MC 18 §3.
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