DepEd reminds employees not to engage in ATM card pawning

In a released memorandum from the Office of the Secretary last April 18, 2020, the Department of Education (DepEd) reminded all its personnel not to use ATM Payroll Card as collateral for loans or engaging in the ATM Sangla scheme. The advice was reiterated after crediting additional cash to the ATM accounts of the employees brought by the implementation of the mandatory grace period or the suspension of payment for loans.

Based on the Section 4 (aa) of the Bayanihan to Heal as One Act, public and private financial institutions including Government Service Insurance System (GSIS) and PAGIBIG Fund implemented guidelines that would lessen the burden of the borrowers in the time of COVID-19 pandemic.

It was stated that GSIS and PAGIBIG granted an expanded relief for a three-month moratorium on loan payments and an extension of the loan terms of their individual borrowers. On the other hand, DepEd Provident Fund granted a three-month relief for its borrowers by suspending the collection of payment from April 2020 to June 2020.

Furthermore, it was mentioned in the memorandum 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.

Because of these happenings, the department asked its personnel not to practice the surrendering of ATM cards as collateral for loans as it is unallowed by the DepEd Terms and Conditions for Accreditation under the Automatic Payroll Deduction System.

Bangko Sentral ng Pilipinas (BSP) has considered ATM Card pawning as a dangerous scheme. Borrowers could be exposed to identity theft and unauthorized use of personal data.

Post a Comment