(Eagle News)–The Bangko Sentral ng Pilipinas on Saturday, May 20, urged the public to refrain from participating in “sangla-ATM” schemes.
According to the BSP, the scheme, which sees Automated Teller Machine cardholders sharing their ATM cards and personal identification number as collateral for loans, may lead to financial troubles.
It said this was because it may be difficult for these cardholders to monitor withdrawals made by people to whom the ATM card and PIN were given.
“Creditors may also withdraw amounts higher than the cardholders’ debt,” the BSP added.
The BSP also advised borrowers to “understand the terms and conditions of loan agreements to protect themselves against unreasonable demands.”
“For information on microfinance, personal, and other small loan facilities, the public is encouraged to directly inquire with banks and other BSP-supervised financial institutions, such as pawnshops, money service businesses, electronic money issuers, and non-stock savings and loan associations,” the BSP added.
According to the BSP, it issued this advisory in line with its “continuing program to guide Filipinos on safe and proper ways to handle money, credit and savings through financial education and personal finance management lessons.”