The Department of Education (DepEd) has reminded its personnel not to surrender or use their ATM payroll cards as loan collateral, warning that the practice known as “Sangla-ATM” exposes borrowers to financial abuse.
For teachers and school staff in the Philippines who rely on salary loans to get through the month, the reminder is a direct warning against handing over ATM cards and PINs to informal lenders. DepEd’s memorandum applies nationwide, covering public school teachers and administrative personnel from Cebu to Metro Manila who receive their salaries through payroll ATM accounts.
DepEd Memorandum No. 049, series of 2026, dated August 12, reiterates the department’s prohibition on using ATM payroll cards as loan collateral or surrendering them to lenders. The memorandum cites an earlier Office Memorandum dated April 18, 2020, as well as a Bangko Sentral ng Pilipinas (BSP) advisory on the Sangla-ATM scheme issued in May 2023.
Under the scheme, borrowers hand their ATM cards and PINs to lenders in exchange for cash. Lenders then withdraw the borrower’s salary or pension payments directly once these are credited, continuing until the loan and its interest are fully settled.
DepEd said the practice is high-risk and abusive because it may expose personnel to uncontrolled withdrawals, financial exploitation, excessive indebtedness, and the possible misuse of personal and sensitive information.
“All DepEd personnel are strongly advised to exercise utmost prudence and diligence when entering into loan agreements,” part of the memorandum read.
The department urged personnel to avoid informal or unauthorized lending schemes that impose excessive interest rates or unfavorable and oppressive terms, and reminded employees to safeguard their ATM payroll accounts and personal information from unauthorized access.
Instead of informal lenders, DepEd is directing personnel toward accredited and regulated sources of financing. These include loan programs from the Government Service Insurance System (GSIS), the DepEd Provident Fund, the Land Bank of the Philippines, and the Pag-IBIG Fund. Employees may also transact with lending companies registered with the Securities and Exchange Commission (SEC) and other DepEd-accredited private lending institutions offering transparent terms.
DepEd directed the immediate dissemination of the memorandum and strict compliance across all DepEd offices and schools.
