PB OKs ordinance penalizing lenders that take 4Ps cards
The Cebu Provincial Board (PB) has approved Bogo City’s ordinance restricting lending firms, usurers and individuals from accepting 4Ps cash cards and other documents as collateral or security for loans.
The PB took into account the policy of the Pantawid Pamilyang Pilipino Program (4Ps) National Advisory Committee (NAC), an interagency and highest policymaking body, which provides policy directions and guidance on matters pertinent to 4Ps implementation.
“In accordance to NAC Resolution No. 20, series of 2014, cash card pawning is a punishable misdemeanor,” read the committee report approved by the PB last week.
The City of Bogo is an active implementer of 4Ps and Modified Conditional Cash Transfer (MCCT) Program servicing 2,430 and 3,046 enrolled family beneficiaries, respectively.
Numerous complaints have been reported on cash card pawning wherein the cards or other 4Ps documents are used as loan collaterals.
The 4Ps NAC maintains that the card received by the beneficiaries are owned by the Philippine Government and does not authorize the grantees to pawn or use it as loan collateral for any transaction or undertaking.
The NAC resolution, however, penalizes only the violations committed by the beneficiaries, and not the lender.
“The Sangguniang Panlungsod sees it fit to impose sanctions on reciprocal acts committed by financial institutions, individuals, loan sharks, lending companies and the like who accept 4Ps cash card as loan collaterals,” read the city council resolution embodying the ordinance.
A minimum fine of P2,000 and a maximum of P5,000 shall be imposed against individual lenders and lending companies violating the ordinance, while the beneficiaries shall be referred to the City Social Welfare and Development Office and be dealt with in accordance to NAC resolution.
Board Member Raul Bacaltos, who heads the PB committee on laws, reviewed the ordinance authored by City Councilor Ethel Gulane that was passed last September 13 and was approved by Mayor Carlo Jose Martinez last September 26.