CREDIT provider Home Credit Philippines (HCPH) warned consumers of increasingly sophisticated loan-to-cash scams targeting borrowers ahead of the Christmas season, when consumer spending typically peaks and fraud attempts surge.
HCPH said scammers have been approaching customers with pre-approved offers, posing as trusted intermediaries and encouraging them to avail of a product loan and sell the device for quick cash. Some even offer to pay the down payment or process HCQWARTA credit limits on the
borrower’s behalf.
Once the transaction is completed, the scammer disappears with the device or the cash, leaving the loan under the customer’s name. Defaults can damage credit scores, restrict access to future financing and result in blacklisting, the firm said.
The company stressed the schemes are illegal under the Anti-Financial Account Scamming Act (Republic Act 12010), which classifies them as money-muling. Violators face six to eight years in prison and fines of P100,000 to P500,000.
HCPH urged borrowers to be more vigilant during the holiday period, when the demand for quick cash rises and fraudsters become more active. Customers should avoid suspicious offers, transact only through official channels and report attempts immediately.
“Every Home Credit loan reflects the hard work and dreams of our customers,” said Sheila Paul, HCPH chief marketing officer. “These schemes take advantage of that trust. As holiday spending increases, we encourage customers to stay cautious. We remain committed to protecting and empowering them.” / KOC