BSP Warns Public Against ‘Pasalo’ Auto Loan Program
The Bangko Sentral ng Pilipinas (BSP) on Wednesday warned the public against a so-called “pasalo” or taking over payments in a car loan program used by carnapping syndicates.
In an advisory, the central bank said it issued a note on Aug. 26 to BSP-supervised financial institutions (BSFI) regarding organized crime through auto loans.
The BSP said the authors of the “balance / pasalo program”, also known as the “Pasalo-Benta program,” target vulnerable car buyers who hope to save money on their car purchase and sellers who have to transfer their debts.
Under the scheme, a union member would buy a vehicle from a seller with an agreement to take on car loan payments, according to the central bank.
However, he said the union member did not intend to pay the remaining depreciation and would sell or give the vehicle to an end buyer for a profit using forged documents, “not giving the end buyer no rights to the vehicle “.
As a result, the original seller defaults on their car loan and the car is repossessed, leaving the end buyer with nothing.
The BSP noted that the bank that has the original registration certificate from the Land Transportation Office or the car dealership can still collect the car.
“This can be done with the help of Law Enforcement Agencies (LEA) who can report / issue an alert for the vehicle. However, the buyer cannot get anything back because he has forged documents, ”he said.
With the emergence of the program, BSP called on the BSFI to prevent such crimes by strengthening the conduct of customer identification and verification procedures as part of customer due diligence.
The central bank also alerted the BSFI to other types of illegal car-related activity, including the “rent-tangay”, the “rent-sangla”, the “loan housing program” and the “labas program”. -casa ”.
The Philippine National Police recently warned against unions acquiring high-end motor vehicles through auto loans under fictitious circumstances, according to the BSP.
These crimes are committed by using fabricated conduction stickers, license plate numbers, identities, and forged documents, such as ID cards and work certificates, to successfully qualify for car loans, a. -he declares.
He added that carnapping unions sometimes resort to identity theft using a real person’s name, address and company profile, but with a different photo.
BSP advised BSFIs to strictly observe and strengthen the implementation of anti-money laundering (AML) regulations on customer identification and verification procedures, ongoing monitoring of customers and their transactions. , suspicious transaction reporting and the AML continuing education program, including checks on authorized automotive partners / dealers.
BSFIs are also reminded to file suspicious transaction reports, when warranted. —Ted Cordero / KG, GMA News