DepEd Issues Warning Against Using ATM Payroll Cards for Loans
The Department of Education (DepEd) has reminded its employees that using or surrendering their ATM payroll cards as collateral for loans is strictly prohibited.
The reminder was issued through DepEd Memorandum No. 049, series of 2026, dated August 12, 2026. The policy follows an earlier DepEd memorandum from 2020 and a 2023 advisory from the Bangko Sentral ng Pilipinas (BSP) concerning the so-called Sangla-ATM scheme.
Under this practice, borrowers give their ATM cards to lenders as security for a loan. DepEd warned that the arrangement can put employees at serious financial risk. It may allow lenders to make unauthorized withdrawals, lead to excessive debt, and expose employees to financial abuse or the misuse of personal and sensitive information.
DepEd urged all personnel to carefully review loan offers before entering into any agreement. Employees were specifically advised to stay away from informal or unauthorized lenders, especially those offering loans with extremely high interest rates, unfair conditions, or abusive terms.
Instead, the department encouraged employees to use only legitimate and regulated loan facilities. These include loan programs offered by the Government Service Insurance System (GSIS), DepEd Provident Fund, Land Bank of the Philippines, and Pag-IBIG Fund.
Employees may also seek loans from lending companies registered with the Securities and Exchange Commission (SEC) and private lending institutions recognized by DepEd.
The department emphasized that employees should protect both their payroll accounts and personal information. Giving an ATM card to another person can create serious risks because the card provides access to an employee’s salary and may expose sensitive financial details.
DepEd has ordered the immediate distribution of the memorandum and called for strict compliance from all personnel.
Employees who need clarification or want to report concerns regarding the policy may contact the Finance Service-Employee Account Management Division of the DepEd Central Office.
