The Presidential Anti-Organized Crime Commission (PAOCC) urged the public to be cautious when seeking emergency loans, warning against predatory lenders that impose excessive interest rates, harassment, and unclear terms.
In a video advisory on Thursday, PAOCC Executive Director Gilberto Cruz said individuals in urgent need of cash should first approach government agencies such as the Pag-IBIG Fund, Social Security System (SSS), and Government Service Insurance System (GSIS), which offer calamity loans with low interest and transparent conditions.
“Even though there is a process and a bit of waiting, the interest is low and the terms are clear. You can also approach banks and cooperatives for renovation and legal loans,” Cruz said.
He also recommended transacting with banks and cooperatives for legitimate and regulated loans.
If using online lending platforms, Cruz advised borrowers to verify if the company is registered, if charges are clearly stated, and if the lender has a good reputation.
Cruz cautioned against accepting loans without written contracts, or those with unclear provisions and excessive penalties.
“In times of need, the right loan should be a solution, not a burden,” he said, urging the public to carefully assess repayment capability before borrowing.
The PAOCC chief vowed that the agency will continue supporting safe and legal lending practices to help Filipinos recover from financial difficulties without falling victim to abusive schemes.
Cruz also reaffirmed its commitment to ending the abuse of Online Lending Applications (OLAs) that harass, threaten, and exploit borrowers.
He said there are still reputable lending apps and companies that operate responsibly and provide quick financial assistance to those in need, but abusive OLAs continue to misuse the system to intimidate, violate privacy, and trample on borrowers’ rights.
