OZAMIZ CITY – Ozamiz City Mayor Henry “Indy” Oaminal, Jr. has appealed to money lenders to return any third-party ATM cards that they have in their possession, which they typically obtain as a loan collateral from their clients.
This practice, also known as “Sangla ATM”, is currently prohibited by the Bangko Sentral ng Pilipinas (BSP). Oaminal stressed the urgency of his directive as the Ozamiz City Council is set to pass the “Anti-ATM Pawning Ordinance of 2023.”
“I’m giving them a chance to do what is lawful and right. This method gives too much power and leverage to lenders, to the detriment of borrowers,” Oaminal explained. “If they have not returned the pawned ATMs within 30 days, then sadly they will feel the full extent of the law,” he added.
Back in 2018, the BSP reminded the public that victims of “Sangla ATM” schemes are exposed to unauthorized withdrawals, identity theft, and complete account infiltration. They also pointed out that these lenders “are not authorized by any government agency, so there is limited mechanism for you to file complaints or request for restoration of losses.”
In order to mitigate the lack of proper legislation that can chase after erring lenders who perpetrate the scheme, Oaminal saw fit to ensure the passage Ozamiz City’s Anti-ATM Pawning Ordinance.
“We need to do this for the welfare of our public employees who are delivering public service on a daily basis,” said Oaminal. “Such schemes will not help and have no place in Ozamiz City.” the Mayor concluded.
Image credits: Thomas Galvez/(CC BY-SA 2.0