Raffy Tulfo pushes probe on pawning ATM cards

Senator Raffy Tulfo on Tuesday urged the Senate to investigate the "Sangla-ATM" scheme of some lending companies wherein the debtor's ATM card is being used as collateral.

According to Oscar Oida's report on "24 Oras," Tulfo wants to prohibit the practice of pawning the ATM cards of retirees, which allows the lender to take possession of the card until the debtor's loan is settled.

"I'm looking to proposing the prohibition or regulation of the use of SSS (Social Security System) or GSIS (Government Service Insurance System) pension ATM as a collateral and providing corresponding penalties," Tulfo said.

As early as 2018, the Bangko Sentral ng Pilipinas (BSP) said no law exists prohibiting pawning of ATM cards in exchange for obtaining loans.

A 2022 BSP survey showed 2.6 percent of individuals getting loans adhere to this scheme.

“Kailangan po ng panggastos, kung may pera ako bakit ko isasangla,” said Danilo Lagdaan, who narrated that it took four years before he was able to retrieve his card from the lender.

A lender said the scheme also has its risks to them.

“Lagay natin na makakautang ng 30, 50 (thousand) tapos alam nilang hirap na sila, minsan yung iba ay hindi kinukuha, pupunta sila sa banko ipapa-block nila, sasabihih nawala,” the lender said.—Sherylin Untalan/LDF, GMA Integrated News