Madridejos bars use of 4Ps ATM cards for loan transactions

Local

THE municipality of Madridejos on Bantayan Island, Cebu has enacted an ordinance prohibiting the use of ATM cards of Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries as collateral for loans or any financial transactions.

The local government noted that using 4Ps ATM cards as collateral has "led to abuse, exploitation, and financial distress among beneficiaries, defeating the program's purpose of supporting the poorest of the poor."

The 4Ps is a government financial assistance program that seeks to alleviate poverty among Filipinos by providing conditional cash grants to poor households.

"It is the duty of the local government to protect its constituents, especially vulnerable sectors, from exploitation and to ensure the proper use of public welfare programs," read part of the Anti-ATM Card Collateral Ordinance for 4Ps Beneficiaries.

Under the local law, it is unlawful for any 4Ps beneficiary to use or offer his or her ATM card as collateral or security for a loan or financial obligation.

"It shall also be unlawful for any person, lending institution, or entity to accept or require a 4Ps ATM card as collateral

for a loan or financial transaction," the ordinance added.

4Ps beneficiaries found violating the ordinance will be issued a written warning and required to undergo mandatory counseling by the Municipal Social Welfare and Development Office (MSWDO) for the first offense.

Those who commit a second offense will be suspended from the list of 4Ps beneficiaries for one payout cycle upon endorsement to the Department of Social Welfare and Development (DSWD), while those who commit a third offense will be permanently delisted from the program.

To lenders who accept ATM cards as collateral, the penalty ranges from P1,500 to P2,500 for the first to third offenses.

A cease-and-desist order will also be issued for the first offense. Charges will be filed for the second offense, while the third offense carries the revocation of the business permit (if applicable) and a permanent ban on lending operations within the municipality.

The MSWDO, barangay officials, and the police are tasked to enforce the ordinance.(MyTVCebu)