DepEd warns teachers: Pawning ATM payroll account 'illegal'


Posted at Oct 16 2020 02:42 PM

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MANILA - The Department of Education on Friday reminded teachers to stop using their ATM payroll card as collateral for loans.

“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.

(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.)

This 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 teacher “Karen”.

(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 is not covered by the guidelines.)

Karen said she decided to pawn her ATM card to make ends meet. 

Sevilla reminded teachers about the Office Memorandum issued by DepEd Secretary Leonor Briones in April against using their 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 to 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 you can report it to the Bangko Sentral. It was the Bangko Sentral who said that payroll accounts need not be used as collateral by lending institutions.)

Aside from the grace period under the Bayanihan Act 2, DepEd has coordinated with their partner government funding institutions (GFIs) and private lending institutions (PLIs) accredited under their Automatic Payroll Deduction System to further extend the deadline of payments to 2 more months.

DepEd automatically deducts and remits loan payments of employees to partner PLIs and GFIs.

Of the 173 PLIs and GFIs, 89 have agreed to extend to two more months the loan term without accrued interest, she said.

This means that teacher’s net take home pay would increase because DepEd will refund their loan payment to their ATM. 

Meanwhile, Sevilla said teacher Karen has the right to report to the BSP or the SEC the refusal of the lending institution to adhere to the loan moratorium order.