BSP warns cardholders against ‘sangla-ATM’ scheme

Metro Manila (CNN Philippines, May 20) – The Bangko Sentral ng Pilipinas (BSP) has advised the public not to use their ATM cards and personal identification number (PIN) as collateral for loans.

The BSP warned that the “sangla-ATM” scheme “may lead to financial troubles as it may be difficult for card owners to monitor the withdrawals made by people to whom the ATM card and PIN were given.”

“Creditors may also withdraw amounts higher than the cardholders’ debt,” the advisory added.

The central bank also “advises borrowers to understand the terms and conditions of loan agreements to protect themselves against unreasonable demands.”

The public is highly encouraged to directly inquire with banks and BSP-supervised financial institutions regarding microfinance, personal, and other small loan facilities.