There is no law prohibiting the use of an Automated Teller Machine (ATM) card as collateral in securing a loan, officials of the Banko Sentral ng Pilipinas said on Monday. At the hearing of the Senate committee on banks, financial institutions and currencies, committee chair Senator Francis Escudero repeatedly asked the BSP officials present if there is law against the so-called “Sangla ATM” scheme. Plabasan agreed, saying that an ATM card can not be considered a “good collateral” as a card holder can anytime declare that a card has been lost and a replacement could then be sent directly to him. “E kung gusto nilang maglokohan, maglokohan sila hindi naman tayo apektado…” Escudero said. Still the senator asked the BSP officials if the practice of using ATM cards as loan collateral should be prohibited or regulated.

Source: Philippine Daily Inquirer March 19, 2018 07:18 UTC