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BSP warns public vs. 'pasalo' auto loans scheme


The Bangko Sentral ng Pilipinas (BSP) on Wednesday warned the public against a so-called “pasalo” or assumption of payments in an auto loan scheme employed by carnapping syndicates.

In an advisory, the central bank said it issued a memo on August 26 for BSP-Supervised Financial Institutions (BSFIs) concerning organized crimes through auto loans.

The BSP said perpetrators of the “assume balance/pasalo scheme,” also known as the “Pasalo-Benta Scheme,” targets vulnerable car buyers hoping to save money on their car purchase and sellers who need to transfer their liabilities.

Under the scheme, a syndicate member would buy a vehicle from a seller with an agreement to assume payments for the auto loan, according to the central bank.

However, it said that the syndicate member has no intention of paying the remaining amortizations and will sell or dispose of the vehicle to an end-buyer to gain profit using falsified documents, “giving the end-buyer no rights over the vehicle.”

As a result, the original seller defaults on his or her auto loan and the car gets repossessed leaving the end-buyer with nothing. 

The BSP noted that the bank that has the original Certificate of Registration from the Land Transportation Office or car dealer may still recover the car.

“This can be done through the assistance of Law Enforcement Agencies (LEAs) that can flag/issue an alert for the vehicle. However, the buyer may not recover anything as he/she is holding falsified documents,” it said.

With the emergence of the scheme, the BSP called on BSFIs to prevent such crimes by reinforcing the conduct of customer identification and verification procedures as part of the customer due diligence.

The central bank also alerted BSFIs about other types of car-related illegal activities including the “rent-tangay,” “rent-sangla,” “loan accommodator scheme,” and “labas-casa scheme.”

The Philippine National Police has recently warned against syndicates that acquire high-end motor vehicles through auto loans under fictitious circumstances, according to the BSP.

These crimes are done through fabricated conduction stickers, plate numbers, identities, and falsified documents, such as identification cards and employment certificates, to successfully avail of auto loans, it said.

It added that carnapping syndicates sometimes resort to identity theft by using an actual person’s name, address, and company profile, but with a different photo.

The BSP advised BSFIs to strictly observe and strengthen the implementation of Anti-Money Laundering (AML) regulations on customer identification and verification procedures, ongoing monitoring of customers and their transactions, suspicious transaction reporting, and continuing AML training program including controls relating to partner/accredited car dealers.

BSFIs are also reminded to file suspicious transaction reports, when warranted. —Ted Cordero/KG, GMA News

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