The Department of Education (DepEd) reminded its personnel to stop using their ATM cards as collateral for loans or engaging in the so-called ‘sangla’ scheme.
DepEd Secretary Leonor Briones issued an office memorandum warning personnel of the department against surrendering their ATM cards as collateral for loans since the action is prohibited by the DepEd Terms and Conditions for Accreditation under the Automatic Payroll Deduction System.
“ATM Card pawning has been noted by the Bangko Sentral ng Pilipinas (BSP) as a dangerous scheme, for it exposes borrowers to identity theft and unauthorized use of personal data possibly for unlawful activities,” Briones said in the memorandum.
“BSP finds that this practice unduly promotes overindebtedness,” she added.
DepEd chief Briones added that the government is implementing several other policies that could ease the financial burden of its staff during the COVID-19 crisis.
Among these policies are a moratorium on loan payments, and an extension of the loan terms of individual borrowers. The DepEd Provident Fund also granted a three-month relief for its borrowers by suspending the collection of payment from April to June this year, Briones said.
Aside from this, Briones said that DepEd is set “to refund the loan amortizations deducted from the April 2020 payroll and the suspension of deductions for loan payments from the May 2020 salary payroll.”’
Last week, DepEd also announced that the 13th-month pay of teachers would be ready by May 15. Salaries for March and April have also been released, the department said.
“With the additional cash credited to the ATM accounts of the employees, this Department reiterates its advice against the use of their individual ATM Payroll Card as collateral for loans or engaging in the ATM ‘sangla’ scheme,” Briones said.
SIGN UP TO DEPED TAMBAYAN NEWSLETTER
This article is brought to you by Education PH, your reliable partner for learning and success. Sa halagang P499/year, makakadownload ka na ng mga premium learning materials para sa iyong anak o estudyante.