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June 24, 2024

Safeguard your finances: BSP cautions against ‘Sangla-ATM’ loans

The Bangko Sentral ng Pilipinas (BSP) cautions ATM cardholders against engaging in “sangla-ATM” schemes, wherein their ATM cards and PINs are utilized as collateral for loans.

This warning stems from the potential financial challenges that cardholders may encounter, given the difficulty of monitoring withdrawals made by third parties who possess their ATM card and PIN.

Moreover, creditors could withdraw amounts surpassing the cardholders’ debt, exacerbating the risk.

This advisory aligns with the BSP’s ongoing commitment to offer guidance to Filipinos, ensuring the safe and responsible management of money, credit, and savings through comprehensive financial education and personal finance management initiatives.

The BSP emphasizes the importance of borrowers fully comprehending the terms and conditions of loan agreements to protect themselves from unreasonable demands.

For inquiries about microfinance, personal loans, and other small loan facilities, individuals are encouraged to directly contact banks and other BSP-supervised financial institutions such as pawnshops, money service businesses, electronic money issuers, and non-stock savings and loan associations.