SEN. Raffy T. Tulfo wants a government policy that will regulate the operations of lending companies involved in the Sangla-ATM scheme even as he acknowledges the needs of poor families to fast loans, especially during emergency.

“We must look if there is a need to regulate the use of the pension Automatic Teller Machine (ATM) card as collateral in the Sangla-ATM system. At the moment, there is no prohibition or regulation governing these Sangla-ATM transactions,” Tulfo said.

“I am looking into proposing the prohibition or regulation of the use of Social Security System (SSS) and Government Service Insurance System (GSIS) pension ATMs as collateral and provide corresponding penalties,” he added.

During Monday’s plenary session February 27, 2023, Tulfo, in his privilege speech, said these Sangla-ATM lending institutions together with some pensioners’ relatives took advantage of the elderlies.

Sangla-ATM is a form of informal lending system wherein the ATM card is used as collateral and where the lender uses the ATM card or debit card to withhold the payment from the salary every pay day until the entire amount is repaid.

AUTHOR PROFILE

PS Jun M. Sarmiento