Cops warned: Don’t use ATMs as loan col­lat­eral

The Freeman - - NEWS - — Mae Cly­dyl L. Avila/KBQ

The Po­lice Re­gional Of­fice (PRO) in Cen­tral Visayas has called on cops not to use their ATM (au­to­mated teller ma­chine) cards as col­lat­eral for quick and easy loans from in­for­mal lenders or loan sharks.

Chief Su­per­in­ten­dent De­bold Si­nas, direc­tor of PRO-7, also di­rected cops to bring their ATMs ev­ery Mon­day to en­sure their cards are with them.

Those who failed to show their ATMs will face ap­pro­pri­ate sanc­tions, he said.

Si­nas made the or­der fol­low­ing re­ports that most po­lice of­fi­cers are us­ing their cards as col­lat­eral with the loan sharks.

“They should bring their ATMs ev­ery Mon­day. That’s an or­der. I will not buy it if they will rea­son out that their ATMs are with their wives,” he said.

He said cops need to prop­erly man­age their fi­nances, adding that those with debts were found in­ef­fi­cient in their jobs.

Oth­ers would re­sort to il­le­gal ac­tiv­i­ties in or­der to pay off their debts and sus­tain life­style.

Dur­ing his com­mand visit in Daan­ban­tayan in north­ern Cebu, Si­nas said two cops ad­mit­ted that their ATMs are with the lenders.

Si­nas said ap­pro­pri­ate sanc­tions will be im­posed by the Philip­pine Na­tional Po­lice against erring lend­ing fi­nan­cial in­sti­tu­tions.

Bangko Sen­tral ng Pilip­inas (BSP), in its 2014 Con­sumer Fi­nance Sur­vey, said 39.9 per­cent of Filipinos use their ATM cards as loan col­lat­eral wherein bor­row­ers sur­ren­der their cards and share their PIN and other ac­count in­for­ma­tion with in­for­mal lenders or loan sharks.

“The BSP urged the pub­lic to stop “Sangla ATM” schemes wherein bor­row­ers use ATM cards to se­cure a loan,” read BSP’s re­cent pub­lic ad­vi­sory.

The cen­tral bank said the loan sharks are not au­tho­rized by any gov­ern­ment agency, so there is lim­ited mech­a­nism for a card holder to file com­plaints or re­quest for restora­tion of losses

It added that cred­i­tors could with­draw more from the ATM ac­count than the agreed loan amor­ti­za­tion and could com­mit other abuses since there is no for­mal loan con­tract.

Ac­cord­ing to the BSP, the scheme could also ex­pose the bor­row­ers to iden­tity theft.

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