THE Local Government Unit (LGU) of Lupon has passed Municipal Ordinance No. 21-02-2026, or the “4Ps Cash Card Protection Ordinance,” to prevent beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) from pawning or using their automated teller machine (ATM) cards or cash cards as loan collateral.
Under the ordinance, the acceptance of 4Ps ATM cards or any related documents as loan collateral, the charging of service fees or interest connected to the cash card, and the pawning of the card are strictly prohibited. It also stipulates that 4Ps beneficiaries are not allowed to use their cash cards or any 4Ps documents as collateral.
Those found to have violated the ordinance will be subjected to penalties such as warnings and suspension of grants, up to removal from the program.
Lenders or financial institutions involved in the pawning of ATM cards or cash cards as collateral will also face penalties, including fines, imprisonment, or cancellation of business permits.
“Ang maong mga aksyon nagpakita sa padayon nga pagpalig-on sa institutsuon, ekonomiya, edukasyon, ug social justice pinaagi sa nagkahiusang paningkamot sa Sangguniang Bayan ug sa ehekutibo (These actions demonstrate the continuing strengthening of institutions, the economy, education, and social justice through the unified efforts of the Sangguniang Bayan and the executive branch),” LGU Lupon Vice Mayor Christian Lawrence "Chrence" Go said in a Facebook post February 25, 2026.
Broader scope
Meanwhile, the Department of Social Welfare and Development-Davao Region (DSWD-Davao) said the passage of the ordinance is part of the continuing efforts of the department, the Provincial Local Government Unit (PLGU), and other LGUs to ensure that 4Ps assistance is used properly and to prevent beneficiaries from being exploited.
DSWD-Davao added that the passage of the ordinance in Lupon forms part of a broader regional initiative, wherein several cities and municipalities in Davao de Oro, Davao del Norte, and Davao del Sur have already implemented similar legislation to ensure the protection of 4Ps beneficiaries.
Among the LGUs that have passed ordinances similar to Lupon are the Municipality of Sta. Maria in Davao Occidental and Tagum City in Davao del Norte.
No pawning or loan collateral
The DSWD has long warned 4Ps beneficiaries not to pawn or use their ATM cards or cash cards as loan collateral, citing that under the Grievance Redress System (GRS) guidelines on beneficiary misconduct, cash cards “are not allowed to be used as collateral in loans.”
The GRS guideline is also supported by the approved policy of the Pantawid National Advisory Committee (NAC), which states that “inappropriate utilization of the grants, such as pawning, using them as collateral, selling Cash Cards and/or Pantawid Pamilya IDs, and spending grants for purposes other than those intended for the education and health needs of the family, are all subject to appropriate sanctions.”
As of December 31, 2025, DSWD-Davao reported a total of 257,059 4Ps household beneficiaries in the region. RGP WITH REPORTS FROM PNA