DepEd warns teachers: Pawning ATM payroll for loan collateral is ‘illegal’

  • The DepEd reminded teachers that they cannot use their ATM payroll as loan collaterals
  • DepEd Undersecretary for Finance Annalyn Sevilla reminds them on the memorandum issued by DepEd secretary Leonor Briones against such scheme
  • This came after a teacher from Gapan, Nueva Ecija admitted to pawning her ATM payroll to a lending company to make ends meet

The Department of Education (DepEd) gave a warning against public school teachers who continue to pawn their ATM payroll as collateral for loans.

Image by Anne Sevilla via Facebook page

DepEd Undersecretary for Finance Annalyn Sevilla reminded teachers that they must not use their ATM payroll cards as loan collaterals.

“This is a dangerous scheme kasi even bonuses wala kaming ibang paraan kung ‘di idaan sa inyong payroll account. ‘Yan pong payroll account ay ating pinagkasunduan na ang lahat ng sweldo, benepisyo ay kailangang dadaan sa payroll,” Sevilla said.

The warning came after a teacher from Gapan, Nueva Ecija admitted that she pawned her ATM payroll to a lending institution to make ends meet. She later on complained that despite the 60-days grace period allowed under the Bayanihan Act 2, the lending company continued to make deductions for her loan payment.

Sevilla reminded teachers that DepEd Secretary Leonor Briones already issued an Office Memorandum last April against using their ATM cards as loan collateral. She urged them to think twice before engaging in those schemes and to make sure that the lending company is accredited by the Bangko Sentral ng Pilpinas or with the Securities and Exchange Commission.

“Bawal po ‘yun at pwedeng isumbong sa Bangko Sentral. Ang Bangko Sentral na nagsasabi kailangang sa isang lending institution hindi kailangang i-collateral ang inyong payroll account,” she added.

Image by DepEd via Facebook

Meanwhile, DepEd already coordinated with their partner government funding institutions (GFIs) and private lending institutions (PLIs) accredited under their Automatic Payroll Deduction System to further extend the deadline of payments to 2 more months. The extension is on top of the grace period under the Bayanihan Act 2.

Source :

Facebook, ABS-CBN