The country’s central credit registry warned the public of collection scam and individuals falsely claiming to be employees of Credit Information Corp. (CIC) with the intent of harassing borrowers to pay their account despite the Luzon-wide enhanced community quarantine.
In a recent statement, the CIC ensured that the firm never employed such scheme in collecting payment from the borrowers.
According to CIC President and CEO Jaime Casto Jose P. Garchitorena they have been receiving numerous complaints from borrowers who are allegedly being harassed by lenders and debt collectors.
“Some even go to the extent of disguising themselves as representatives or employees of the CIC to scare distressed borrowers to pay their loans despite the lockdown,” Garchitorena was quoted in the statement as saying.
“The CIC will never be part of any direct collection effort, nor will CIC employees contact borrowers directy,” he added.
Garchitorena said the CIC is working with law enforcement and other government agencies in addressing the matter.
“While the CIC has no direct supervision over lending corporations, it joins the SEC [Securities and Exchange Commission] in helping consumers avoid over-indebtedness and calling out abusive lending practices and exorbitant interest rates,” the credit registry added.
Meanwhile, CIC expressed support toward the SEC’s call urging all financial and lending companies to employ measures seen to ease the burden of the borrowers amid the lockdown.
“We extend our unwavering support to the SEC in strongly encouraging these companies to develop and implement schemes to provide financial relief to their borrowers during these trying times,” the CIC chief said.
The SEC released a notice on March 23 outlining the debt relief measures the financing and lending companies may employ including lowering of interest rates, waiver or reduction of penalties and other fees, extension of loan term, suspension of collection, payment holiday and debt consolidation.
Banks had announced that they were providing a grace period for qualified borrowers. While they were encouraging online and mobile banking, banks remain operational with limited capacity and shortened working hours.
Source: BusinessMirror