DepEd reminds teachers to halt pawning ATM payroll cards as loan collaterals

On Friday, the Department of Education (DepEd) reminded teachers to stop using their ATM payroll cards as collateral for loans.

Photo credit: thelighthouse106.wordpress.com

This is a dangerous scheme kasi even bonuses wala kaming ibang paraan kung ‘di idaan sa inyong payroll account. ‘Yan pong payroll account ay ating pinagkasunduan na ang lahat ng sweldo, benepisyo ay kailangang dadaan sa payroll,

said DepEd Undersecretary for Finance Annalyn Sevilla.

[This is a dangerous scheme, we have no other way but to direct all your bonuses to your payroll account. It was agreed upon that all your salary, benefits will go to your payroll.]

The department issued the reminder after a teacher from Gapan, Nueva Ecija said the lending institution where she pawned her ATM payroll card would still deduct loan payments despite the 60-days grace period under the Bayanihan Act 2.

Concern ko lang po 'yung Bayanihan Act 2. Nagtanong ako sa lending na pinagsasanlaan ko ng ATM ko kung hindi nila kami kakaltasan. Sabi po kakaltasan, wala daw po sa guidelines 'yung ATM loans, yun lang daw lang salary deduction po,

said the teacher.

[My concern is with the Bayanihan Act 2. I asked the lending firm where I pawned my ATM if they will not deduct our loan payments. But they said they would because they said ATM loans are not covered by the guidelines.]

The teacher decided to pawn her ATM card to make ends meet. 

Last April, Secretary Leonor Briones issued a memorandum against using of ATM cards as loan collateral. 

Yung reminder na inisyu ni Sec. Briones ay para magkaroon na stop to this practice at 'yung mga nahulog sa ganitong iskema ay sana magkaroon ng paraan na sana kayo ay makalagpas o makaalis dito,

said Sevilla.

[The reminder that was issued by Sec. Briones is to put a stop to this practice and we hope that those who fell to this kind of scheme would find a way out.]

She urged teachers to think twice before getting a loan with their ATM as collateral. She also said to check first if the lending institution is accredited by the Bangko Sentral ng Pilpinas or with the Securities and Exchange Commission. 

Bawal po 'yun at pwedeng isumbong sa Bangko Sentral. Ang Bangko Sentral na nagsasabi kailangang sa isang lending institution hindi kailangang i-collateral ang inyong payroll account,

she said.

[That’s prohibited and can be reported to Bangko Sentral. It was the Bangko Sentral who said that payroll accounts need not be used as collateral by lending institutions.]