OZAMIZ City Mayor Henry “Indy” Oaminal Jr. has appealed to money lenders in the city to return any third-party ATM cards that they have in their possession as he pushed for the passage of the proposed “Anti-ATM Pawning Ordinance of 2023.”
Oaminal said the practice, also known as “Sangla ATM,” is prohibited by the Bangko Sentral ng Pilipinas (BSP). Under the scheme, borrowers use their ATM cards as a collateral for their loans.
“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 said.
“If they have not returned the pawned ATMs within 30 days, then sadly they will feel the full extent of the law,” he warned.
In 2018, the BSP cautioned the public against the “Sangla ATM” scheme, saying that borrowers are exposed to unauthorized withdrawals, identity theft, and complete account infiltration. It likewise said that the lenders “are not authorized by any government agency, so there is limited mechanism for you to file complaints or request for restoration of losses.”
To mitigate the lack of proper legislation to run after those who perpetrate the scheme, Oaminal asked the Ozamiz City Council to pass the 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. Such schemes will not help and have no place in Ozamiz City,” Oaminal said.
