SSS begins sending members text reminders on late loan payments
THE SOCIAL Security System (SSS) last month began notifying its members via text message regarding late payments or past due on their short-term loans, it said on Tuesday.
“SSS will now regularly issue these messages to its loan borrowers, ensuring they are promptly reminded whenever they miss their loan payments or have loans that have remained unsettled after its maturity,” SSS Senior Vice-President for Lending and Asset Management Group Pedro T. Baoy said in a statement.
SSS members can log in to their My.SSS accounts to check if their approved loans have been fully settled to avoid accumulating penalties for late payments.
SSS began sending alerts through text as most members do not check their e-mail inboxes, Mr. Baoy said.
“We send loan billing statements to our member-borrowers through their registered e-mail address. However, unlike reading text messages, most members do not open their e-mail inboxes. Most of them carry their mobile phones wherever they go, so we saw text alerts as a great way to remind them,” he said.
“If they miss their loan payments, they will be charged a 1% monthly penalty on unpaid principal and interest until fully paid. If their loan remains unsettled for over five years, the incurred penalties will exceed the outstanding principal amount and interest. We do not want that to happen to our member-borrowers, so we are helping them avoid reaching that situation,” Mr. Baoy said.
Members can avail of the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty to manage their payments and avoid penalties, the SSS said.
Under the program, the SSS will combine the principal and interest of members’ past-due short-term loans into one consolidated loan, which they can settle via one-time payment or an installment plan. — AMCS
