The Department of the Interior and Local Government-Cordillera Administrative Region (DILG-CAR) warned the public to be extra cautious and exercise due diligence when applying for loans with the surge of the fraudulent “Advance Fee Loan’’ scam nationwide.
DILG-CAR Director Araceli A. San Jose urged the local government units (LGUs) to “ actively disseminate information on these schemes in their respective localities to prevent further victimization.’’
She asserted that the LGUs must help their constituents to become more vigilant against these fraudulent activities and information must be made available to the public on how these can be reported to the concerned offices.
The DILG-CAR chief issued the call after the Securities and Exchange Commission (SEC) received numerous complaints concerning the “Advance Fee Loan” scams where borrowers are deceived into paying advance fees in exchange for the approval of “fast and easy” loans with minimal interest.
“We advise the public to never pay any advance fees when applying for loans. Any legitimate financial institution will never require advance payment, along with your passwords and other sensitive financial information,” RD San Jose said.
Citing a SEC Moratorium on online lending applications implemented in 2021, San Jose stated that the public must take extra caution when engaging with lenders, especially those advertised on social media, and to conduct due diligence to confirm their legitimacy.
“We need to be more discerning about our financial transactions and with whom we conduct these with. Apart from casting doubt on the integrity of our financial systems, the mental distress such schemes inflict on our constituents must also be considered,” she added.
San Jose also enjoined all LGUs in the region to participate in SEC’s intensified information, education, and communication (IEC) campaigns against loan scams, especially at the barangay level, using materials available in the SEC website.
“We encourage all LGUs to participate in the information campaign to raise awareness about these schemes and help prevent any form of loss of public trust in our financial systems,” San Jose said.
She advised the public to coordinate with the SEC if they encounter similar situations or suspicious groups claiming to be affiliated with the SEC.
“The public may report such schemes to the SEC Enforcement and Investor Protection Department through their telephone number (02) 8818-6047 or via email at [email protected]. SEC’s Financing and Lending Companies Department (FinLenD) can also be contacted through the email address [email protected]or [email protected] their telephone numbers (+632) 8818-5990 or (+632) 5322-7696 local,’’ San Jose continued.