MANILA – The Department of Justice chief on Tuesday warned informal lenders who operate “5-6” schemes that they may be arrested.
In a news conference, Justice Secretary Vitaliano Aguirre noted that while the high interest rate in the "5-6" scheme is technically legal because the Usury Law has been repealed, those involved may still be arrested for operating without permit.
“Pwedeng hulhin iyang mga iyan. They are operating without any permit or license. Very stringent ang requirements dyan, it is lending. So, bago ka makapagpatayo ng lending activity, katakot-takot na papeles at application ang gagawin mo,” Aguirre said.
(They can be arrested for that. They are operating without any permit or license. Building a lending business has requirements.)
President Rodrigo Duterte has scored the “5-6” lending practice, saying its exorbitant interest rate is killing the Filipino entrepreneur’s spirit.
The government is pilot-testing the "Pondo Para sa Pagbabago at Pagasenso (Change and Progress Fund)" intended to spur small- and medium-enterprises (SMEs).