The Bangko Sentral ng Pilipinas (BSP) on Monday warned the public against ‘Sangla ATM’ that lenders do nowadays.

‘Sangla ATM’ is a scheme where money lenders take a person’s Automated Teller Machine (ATM) card, account information, and Personal Identification Number (PIN) as a collateral for the money that person owes.

“Para sa mga NANGHIHIRAM, mukhang mabilis at madaling paraan ang “Sangla-ATM” para makautang. Ngunit ito ay madaling maabuso at maaaring magdulot ng mas malaking problemang pampinansyal,” BSP said in a statement.

The central bank said this method may put cardholders in financial problems, as it may be challenging for them to keep track of withdrawals made by others.

Additionally, it said lenders may withdraw funds that may exceed the cardholders' debt.

The BSP advised borrowers to carefully study the terms and conditions of their loan agreements in order to safeguard themselves against irrational requests.

The advisory was released as part of the BSP's ongoing initiative to educate Filipinos about responsible and safe money management practices through personal finance management training and financial education.

Written By Dana Ebreo, DZRH News Online Intern