The government and the ruling People Power Party have agreed to introduce legislation to stop predatory lending.
 
After a two-way meeting Wednesday, the ruling camp announced plans to prevent loan sharks from operating, nullify unlawful private financing contracts, and divest offenders of their illegal profits. 

If the proposed legislation passes, unregistered lenders that charge excessive interest will face tougher penalties.

Registration requirements for online sites that link lenders to borrowers will be tightened, and the Financial Services Commission will take over this role from local governments.

Lenders found not to meet the requirements will immediately be shut down and banned from resuming business for three years.