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The Department of Education (DepEd) has reminded its personnel not to surrender or use their ATM payroll cards as collateral for loans, warning against the risks associated with the practice known as “Sangla-ATM.”
In DepEd Memorandum No. 049, s. 2026, dated August 12, the department reiterated its prohibition on the use of ATM payroll cards as loan collateral or their surrender to lenders.
The memorandum cited an earlier Office Memorandum dated April 18, 2020, as well as the Bangko Sentral ng Pilipinas’ advisory on the “Sangla-ATM” scheme issued in May 2023.
According to DepEd, the practice is considered a high-risk and abusive lending practice because it may expose personnel to uncontrolled withdrawals, financial exploitation, excessive indebtedness and the possible misuse of personal and sensitive information.
The department urged its personnel to exercise “utmost prudence and diligence” when entering into loan agreements and to avoid informal or unauthorized lending schemes that impose excessive interest rates, unfavorable terms or oppressive conditions.
The DepEd also reminded employees to safeguard their ATM payroll accounts and personal and sensitive information.
Instead, personnel are encouraged to obtain loans only from accredited, authorized and regulated lending facilities, including government loan programs offered by the Government Service Insurance System (GSIS), DepEd Provident Fund, Land Bank of the Philippines, and Pag-IBIG Fund.
They may also transact with Securities and Exchange Commission-registered and duly-licensed lending companies and other DepEd-accredited private lending institutions that provide transparent and reasonable lending terms and conditions.
The latest memorandum directs the immediate dissemination and strict compliance with the reminder across DepEd offices and schools. — VDV, GMA News
