Chantael Lending Company accused of unauthorized banking activity

Bangko Sentral ng Pilipinas accused Chantael Lending Company of unauthorized banking activity

In a decision penned by Judge Edgar L. Armes, the Regional Trial Court, Fifth Judicial Region, Branch 4 of Legazpi City, Albay, convicted all the members of the board of directors of Chantael lending company based in Camalig, Albay, for engaging in illegal banking activity as it was accepting deposits from the public without authority from the Bangko Sentral ng Pilipinas (BSP). The court found Ermel Rantael, Alicia Rantael, Lilian Morales, Jennifer Rantael and Gloria Rantael, all members of the board of directors of Chantael, guilty of violating Sec. 6 of Republic Act (R.A.) No. 8791 (The General Banking Law of 2000), in relation to Sec. 36 of R.A. 7653 (The New Central bank Act).  Each of the accused was sentenced to a minimum of two (2) years imprisonment and a maximum of three (3) years and to pay the fine of P50,000.00 each.

As a lending company, Chantael Lending Corporation (Chantael) was allowed by the Securities and Exchange Commission (SEC) to only accept deposits from up to nineteen (19) depositors. The Bangko Sentral ng Pilipinas filed the case with the Regional Trial Court after it was found that Chantael accepted deposits from more than 20 depositors and issued certificate of time deposits (CTD) to them. The BSP’s Office of Special Investigation presented during the trial more than 20 depositors who failed to get back their deposits when Chantael closed.

The BSP is warning the public against illegal and unauthorized banking activities. The BSP said it will prosecute anyone found engaging in such illegal activities. - https://www.affordablecebu.com/