Group flags ‘abusive loan sharks’ targeting education workers

Some teachers and workers in the education sector are facing “abusive” and “predatory” loan sharks amid the holiday season, according to a teachers’ group.

“We had a discussion with teachers who are worried about their ATM (Automated Teller Machine) payroll that was garnished by atrocious lending companies operating as loan sharks,” Teachers Dignity Coalition National Chairman Benjo G. Basas said in Filipino in a video statement on Wednesday.

“We are not dismissing the liability of our fellow teachers who were not careful or vigilant,” he added. “However, they should not be squeezed dry financially or have all of the money that goes into their ATM be taken because of garnishment.”

Teaching professionals often take loans from private lending institutions (PLI) due to insufficiency fueled by economic challenges, said Mr. Basas.

“This propensity to borrow is not because of the teachers’ personal interest or desire to take on debt. This is caused by insufficiency. This is because of the economic challenges our teachers face every day,” he said.

In the written appeal to the Department of Education (DepEd), TDC noted that financially struggling teachers have been lured by private lending institutions (PLI) into loan agreements that have “deceptive terms, excessive penalties, unconscionable fees, and compounded interest.”

“This appeal is made for teachers and DepEd employees who—after already being victimized, harassed, and financially penalized—are now facing yet another devastating blow: the inability to provide for and celebrate the holiday season with their families,” the group said.

“When borrowers inevitably fall behind, these institutions resort to legal maneuvers designed to secure court orders of garnishment, effectively stripping teachers of their salaries and leaving them financially incapacitated,” it added.

The group also raised concerns about reports on certain personnel from the Schools Division Offices (SDO) who have directly and indirectly accommodated the said PLIs that placed teachers in financial jeopardy.

“This appeal is made for teachers and DepEd employees who—after already being victimized, harassed, and financially penalized—are now facing yet another devastating blow: the inability to provide for and celebrate the holiday season with their families,” it added.

Along with the matter raised by the group, TDC has appealed that the year-end incentives of teachers be given in cash or check upon request.

“Granting this request would help spare them from an extremely difficult and distressing situation—so severe that some have felt compelled to personally go to Malacañang to seek the President’s mercy,” it said.

On Dec. 20, the Education department announced that it would begin releasing year-end incentives to approximately one million eligible DepEd employees nationwide.

Teachers and non-teaching personnel are set to receive P20,000 Service Recognition Incentive (SRI) and P5,000 Productivity Enhancement Incentive (PEI).

Meanwhile, non-teaching staff would receive an additional P10,000 Collective Negotiation Agreement (CNA) incentives, and contractual and job order workers could receive up to P7,000 gratuity pay, depending on their length of service.— Almira Louise Martinez