UNSCRUPULOUS loan sharks who reportedly accept Pantawid Pamilyang Pilipino Program (4Ps) cards as loan collaterals may soon face penalties if they continue with their practice.
This after members of the Regional Development Council in Central Visayas (RDC 7) have issued a request to the National Advisory Council (NAC) to request the 4Ps Oversight Committee to review remedial legislation or executive measures penalizing individuals and corporate entities that accept 4Ps cards as loan collaterals.
The RDC’s Social Development Committee (SDC) under the leadership of Department of Social Welfare and Development (DSWD) 7 director Rebecca Geamala presented the recommendation during the RDC 7’s Second Quarter Full Council Meeting on Thursday, June 23, 2022.
According to SDC, they have received at least 1,000 reported cases from 2017 to 2022 of 4Ps cash cards being pawned to loan financiers or loan sharks as security or collateral.
4Ps is a poverty reduction strategy of the national government, spearheaded by the DSWD by providing cash grants to extremely poor households to improve their health, nutrition and education, especially for children ages 0-14.
“Data from DSWD 7 showed that there are 1,000 reported cases of pawned cash cards from the year 2017 to 2022, and the actual number of reported cases related to pawning may be higher,” the SDC said.
The committee is worried that the continued pawning of cash cards, if left unchecked, will “adversely affect” the objective of the program.
The SDC said that there are appropriate sanctions for certain household beneficiaries who used their 4Ps cash cards incorrectly.
However, there are still no laws or policies that provide sanctions to individuals or organizations which accept cash cards as loan collateral.