The Bangko Sentral ng Pilipinas (BSP) has warned the public on Friday against “sangla-ATM” schemes which supposedly offers “quick and easy loans” from some informal lenders or loan sharks.
These “sangla-ATM” schemes require cardholders to surrender their Automated Teller Machine (ATM) cards and share their personal identification numbers or PIN as collateral for their loans.
In a PhilStar report, the Bangko Sentral ng Pilipinas (BSP) issued an advisory where it stated that this practice puts financially struggling Filipinos at risk of unauthorized withdrawals, trapping them in the long run.
“This scheme may lead to financial troubles for cardholders as it may be difficult for them to monitor withdrawals made by people to whom the ATM and PIN were given,” BSP said in the advisory.
“Creditors may also withdraw amounts higher than the cardholder’s debt,” it added.
Furthermore, the BSP urged the public to fully learn about the terms and conditions of their loan agreements to protect themselves from unreasonable demands.
The BSP also clarified that since 2018, there is no existing law that prohibits the pawning of ATM cards in exchange for securing loans.
