By Christine Fabro
The Bangko Sentral ng Pilipinas (BSP) on Saturday, May 20, advised the public to refrain from participating in “sangla-ATM” schemes.
In an advisory, the BSP warned automated teller machine (ATM) cardholders that such schemes that require them to use their ATM cards and personal identification number (PIN) as collateral for loans “may lead to financial troubles”.
“This scheme may lead to financial troubles for cardholders as it may be difficult for them to monitor withdrawals made by people to whom the ATM card and PIN were given,” BSP noted.
“Creditors may also withdraw amounts higher than the cardholders’ debt,” it added.
The BSP also reminded borrowers to understand the terms and conditions of loan agreements to protect themselves against unreasonable demands. – gb
