DepEd to teachers: Don’t use ATM as loan collateral

MANILA, Philippines — The Department of Education (DepEd) is advising teachers to refrain from using their ATM payroll cards as loan collateral amid reports of excessive indebtedness of many teachers.

Fatima Lipp Panontongan, DepEd undersecretary and chief of staff, issued Memorandum 049.s.2026 to reiterate an earlier memo that reminds teachers of the prohibition against the surrender of ATM payroll cards as loan collateral.

Panontongan said the “Sangla-ATM” scheme is a high-risk and abusive lending practice that exposes DepEd personnel to uncontrolled withdrawals, financial exploitation, excessive indebtedness and possible misuse of personal and sensitive information.

“All DepEd personnel are strongly advised to exercise utmost prudence and diligence when entering into loan agreements, refrain from engaging in informal or unauthorized lending schemes that impose excessive interest rates, unfavorable terms or oppressive conditions, and safeguard their ATM payroll accounts and personal and sensitive information at all times,” Panontongan said.