The Securities and Exchange Commission (SEC) has ordered online lender Bridge Cash to immediately stop operations after the regulator learned that it did not have the necessary registration and authority.
In a June 9 cease and desist order, the SEC's Enforcement and Investor Protection Department directed Bridge Cash to stop processing online lending transactions and cease operating its website, online lending platform, messaging channels and other platforms.
The order also covers the entity's operators, owners, administrators, officers, representatives, agents, promoters and all persons acting on its behalf.
The SEC said Bridge Cash was not registered as a corporation and had not been issued a certificate of authority to operate as a financing or lending company.
The regulator also ordered the entity to stop falsely claiming affiliation with First Digital Finance Corp. or any other legitimate SEC-registered financing or lending company.
The enforcement action stemmed from complaints alleging that Bridge Cash released loans that were substantially lower than what borrowers applied for because of undisclosed deductions and hidden charges, while requiring full repayment within five to seven days.
It also cited allegations that Bridge Cash employed coercive collection practices, including harassment and unauthorized access to borrowers' personal contacts.
"Accordingly, the continued operation of Bridge Cash operates as a fraud upon the public and can cause grave, irreparable, and continuing injury and prejudice to borrowers and financial consumers," the SEC said in its order.