By Politiko staff
The Department of Education (DepEd) has cautioned its employees against surrendering or using ATM payroll cards as loan collateral, reiterating its stance against predatory lending practices targeting public school personnel.
In DepEd Memorandum No. 049, s. 2026, dated August 12, the agency emphasized the prohibition on using ATM payroll cards as security for loans or handing them over to money lenders.
The directive cited a previous department memorandum dated April 18, 2020, along with an advisory issued by the Bangko Sentral ng Pilipinas (BSP) in May 2023 regarding the pervasive “Sangla-ATM” scheme.
According to DepEd, pawning payroll accounts exposes personnel to grave risks, including unauthorized withdrawals, financial exploitation, excessive debt traps, and the potential compromise of sensitive personal information.
The agency urged its personnel to exercise financial prudence and avoid informal or unauthorized lenders that impose exorbitant interest rates and severe repayment terms.
Instead, DepEd advised employees to secure loans exclusively through accredited, authorized, and regulated lending facilities. These include state institutions such as the Government Service Insurance System (GSIS), the DepEd Provident Fund, Land Bank of the Philippines, and the Pag-IBIG Fund.
Employees may also transact with private lending entities accredited by DepEd, as well as financial companies properly registered and licensed with the Securities and Exchange Commission (SEC).
DepEd concluded with a firm reminder for all employees to safeguard their ATM payroll accounts and protect their sensitive personal data from potential abuse.—Politiko.com.ph
