In a recent advisory, the Bangko Sentral ng Pilipinas (BSP) cautioned automated teller machine (ATM) cardholders against engaging in "sangla-ATM" schemes that involve using their ATM cards and personal identification numbers (PIN) as collateral for loans. The BSP highlighted the potential financial troubles that may arise from such arrangements, as cardholders face difficulties monitoring withdrawals made by individuals to whom they have provided their ATM cards and PINs. Additionally, creditors may withdraw amounts exceeding the cardholders' debt.

The BSP's advisory aligns with its ongoing efforts to provide guidance to Filipinos regarding safe and responsible money management, credit utilization, and savings through financial education and personal finance management lessons. The central bank emphasizes the importance of borrowers comprehending the terms and conditions outlined in loan agreements to safeguard themselves against unreasonable demands.

To obtain information about microfinance, personal loans, and other small loan facilities, the public is strongly encouraged to directly inquire with banks and other financial institutions supervised by the BSP. This includes pawnshops, money service businesses, electronic money issuers, and non-stock savings and loan associations. These entities can offer reliable information and guidance on loan options, ensuring that individuals make informed decisions when seeking financial assistance.

The BSP's advisory serves as a reminder for ATM cardholders to exercise caution and prudence when participating in financial transactions. By seeking assistance from established financial institutions and understanding the terms of loan agreements, individuals can protect themselves from potential risks associated with unregulated or unauthorized schemes.

The BSP continues to prioritize the financial well-being of Filipinos and aims to foster a culture of responsible borrowing and saving. Through its educational initiatives and guidance, the central bank endeavors to empower individuals with the knowledge and tools necessary to make informed financial decisions.

It is essential for all ATM cardholders to remain vigilant, stay informed, and engage with reputable financial institutions to ensure the security of their financial transactions and protect themselves from potential fraudulent activities.